How Much Do You Make Per Hour as an Uber Driver?
Bec Susan Gill explained by breaking down income against costs for an Uber driver. By doing some calculations, you’ll find out that, as an Uber driver, you will not make $ 19 per hour as the company claimed.
Uber has different rates for different states, but we are going to use $ 0.90c per mileage rate for LA.
- Uber takes 20% of the total fare from the driver for older drivers.
- Newer drivers get 25% taken.
- Uber doesn’t withhold taxes for you.
- Uber asks you to serve your passengers at your expenses.
Remember that we’re calculating at the rate of $ 0.90c per mile. By taking 20%/25% Uber fee into the consideration, we’re down to 67.5c per mile.
Then you have to deduct tax:
In some LA County’s, sales tax is as high as 10%, and Uber doesn’t withhold taxes for you. The drives are responsible for keeping this money aside to pay the tax department in April.
So with the 10% deducted, we’re down to (just over 60 cents) 60.75c
Now we need to factor in depreciation of the car. A car is an asset like anything else, and will eventually wear out and you’ll have to buy a new one. Every mile you drive decreases the value of your car and brings you that much closer to needing a new one. This is a big problem if you drive for a living, you’re going to need to buy a new car every two or three years and the cost of a new car is significant.
The IRS estimates vehicle cost to drive a vehicle for work at $0.54c a mile.
Broken down into:
- Fuel costs @ an average of $0.12c per mile.
- Depreciation at $0.24c per mile.
- Repairs, tires and maintenance at $0.09c per mile.
- Insurance, license, registration, finance, fees – average out to around $0.09c per mile.
So with 54c depreciation, repairs, and fuel accounted for, we’re down to just over $ 0.06c per mile that actually goes into your hands of drivers.
Uber asks their drivers to buy things like bottles of water, gum, and chargers for their passengers, we can say for certain that driving for Uber pays well below minimum wage or even worse, costing drivers money.
Video is presented by Jayde Lovell, produced and edited by Janina Soriano, at Youtube Space NYC.