AN Uber driver asked a question as someone who considers ridesharing his main source of income: why is he earning less than in previous years?
Uber drivers are voicing concerns about decreasing overall income as full-time drivers.
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“George,” a full-time Uber driver in Cleveland, Ohio, using an alias, realized that what he took home as a driver who made $109,000 only received 16% of that amount.
For those who don’t have a calculator, that’s just $17,000 for the entire year.
He had been driving with Uber as his main source of income since 2017 and explained that he was already happy with the amount he earned per year.
After this year’s net profit, however, he feels stuck between a rock and a hard place.
“I used to praise Uber and I recommend doing Uber to people who are looking for a business opportunity and where a decent income can be made,” he said. Business Insider.
“But not anymore.”
According to the documents you sent to the point of sale, a large percentage of your reduced income costs were due to the costs associated with daily driving your personal vehicle.
This includes gas, general maintenance, insurance, and other miscellaneous costs.
Compared to his 2021 earnings, an additional three percent of his gross income was withdrawn.
In 2022, he said that after careful calculations, he discovered he was earning up to $40 per hour after expenses during busy weeks, making the 30-45-55 hour work weeks worth it.
Gridwise published a to study which found that a typical Uber driver’s salary was around $29 per hour in 2022, decreasing to $23 on average in 2023.
As of 2023, he only earns around $17 per hour.
“Now I would have to drive about 10 to 12 hours a day, six days a week if I wanted to make a large amount of money like I did years ago, working maybe 30 to 40 hours a week,” he said. .
In other major cities, such as Minneapolis, Minnesota, drivers earned an average of just $14 per hour after expenses, causing an uprising that nearly caused Uber to pull services from the city.
Uber told the outlet that the “vast majority” of drivers were satisfied with their pay, claiming that many drivers earned around $33 per hour before expenses.
Many Uber drivers, like George, were upset about the bigger cut in overall pay, with many saying the company is reducing driver pay due to rising insurance premiums, rising gas costs per gallon, and competition among drivers.
How Uber Drivers Make Money
According to the ride-sharing giant, there are several ways for people to earn income as a driver.
However, many factors determine the exact amount a driver keeps.
Factors include:
- Location, location, location. Depending on the city and associated laws, some cities may pay a basic rate, while others may pay more or less. It also largely depends on the time of day and distance travelled. Some cities allow drivers to see the fare amount before the trip is accepted.
- Driving conditions such as snow or rain can also increase driver performance.
- Unexpected traffic can increase the fare as the total travel time increases.
- People who book trips tend to pay more to ensure a car is ready for them.
- Tolls can increase the fare as it is charged to the passenger and refunded to the driver.
- Cancellations are also taken into account, as a fee is charged to the passenger and given to the driver for the inconvenience.
- 100% of tips also go to the driver.
- Promotions can also increase wages, as can price increases when demand for deliveries or travel increases. Pilots can also issue missions, with additional stops.
In 2020, it was estimated that Uber drivers would keep 75% of the fare, and when expenses like gas and vehicles were included, a 30-minute trip would net the driver about $9.13.
Source: Uber, Complete payroll
George is one of many full-time drivers who feel their lack of education and physical capabilities make it impossible to find a different job that pays like Uber used to.
“I would only be able to make, say, up to $20 an hour in a traditional job, which would leave me pretty much in the same boat, so this is not a solution,” he said.
“I don’t have a degree, so my vocational range is limited.”
His bad hip, which leaves him in chronic pain after light exercise, would also make standing, lifting, pushing, or pulling extremely difficult.
He is considering becoming a truck driver, but training and licensing could cost him thousands of dollars in direct costs and unpaid training.
“There are a lot of frustrations because I just want to improve my life,” he said.
“But due to the current situation, I continue to run into a brick wall.”
George isn’t imagining things either – a recent to study found that the cost of being a driver—gas, insurance, cell phone bill, snacks, vehicle maintenance, and other costs—rose while total earnings declined.
This story originally appeared on The-sun.com read the full story
