Have you ever used a ride-sharing service? They can be very convenient and affordable if you need to get somewhere and don't have your own transportation. You just open the company's app, request a ride and just like that, your driver arrives within minutes.
The ride-sharing business model is so simple, many people are choosing to get behind the wheel themselves to earn some extra cash. But how much money can you really make as a driver?
How much do Uber drivers actually make?
Uber has been around since 2009 and there are approximately 50,000 new drivers each month. Coming up with an accurate wage for Uber drivers is difficult.
There are so many factors in play: how many hours driven per week, a driver's location, time of day and day of the week all determine how much a driver can earn. Then you have to deduct personal expenses to calculate an accurate wage.
The loan company, Earnest, recently studied the earnings of Uber drivers. It used loan application information that listed an Uber driver's earnings to complete the study.
Earnest discovered the median income for an Uber driver is $155 per month. The average Uber driver brings in $364 per month. Unfortunately, the company did not find out if these numbers are gross or net.
The number of hours worked were not included in the study. So again, it's difficult to know what the actual hourly rate earned is.
Another study, performed by Harry Campbell, who runs a popular blog on ride-sharing, pinpointed the average hourly wage. After polling over 1,100 Uber and Lyft drivers, Campbell determined the average hourly wage for Uber to be $15.68. Lyft drivers actually earned a little more at $17.50 per hour.
Don't forget that these rates are before factoring in expenses like gas and car maintenance. So the rate that you are expecting to make could be considerably less after expenses are accounted for.
Uber also changes its rates for customers on a regular basis. This affects the bottom line for drivers as well.
The jury is still out on whether it's a good financial deal to drive for Uber. Only time will tell. Leave a comment and tell us what you think.