These days many people choose to use Uber as a taxi option. It’s simple, and you can order a driver any time of day and night with just a few taps on your smartphone. All it takes is downloading an Uber mobile app, creating an account, and there you go, looking for a ride for yourself, your family, and friends.
As of today, more than 100 million people have used Uber. And the company’s net worth is roughly estimated at $11.5 billion, making Uber one of the world’s biggest businesses offering everyday services. To cut a long story short, Uber is amazingly rich, and its services are insanely popular among regular citizens worldwide. But what if we look at the company from an employment perspective? How much can you make from Uber if you choose to become a driver?
Read this article to find the answer to this and related questions, including:
What is Uber’s payment calculation logic?
How do Uber’s commission and fees work?
So how much do drivers earn with Uber?
What are the three simple steps of getting an advance from B9?
How Does Uber Calculate Payments?
So how does Uber decide how much it will pay driver employees? To answer this question, we will have to explore the logic that Uber uses when calculating payments. Calculating payments vary by service. The amount of money you will get as your wage will depend on where you drive, how often, what time of day, and what type of service you provide.
There are two types of services that Uber drivers provide:
Let’s take a closer look at each service and find out how much an Uber driver makes for an Uber ride and an Uber delivery, and if there is a big difference.
First of all, you, as a future Uber driver, need to know that payments are calculated, considering two fees: a booking fee and a service fee.
A booking fee is a fee that a driver pays to Uber. This fee covers several expenses, including regulation, safety measures, and operation. The second fee – the service fee – is a fee that is used to cover service costs, such as payment processing, application maintenance and upgrades, and client support service.
However, there are more factors that will affect how much you will receive for an Uber ride.
One of the most crucial factors affecting how Uber payments are calculated is the surge factor. This factor shows the actual client’s demand for Uber rides at a given moment. So you, as a driver, will make more if you provide rides during demand surge hours.
Another factor is the distance. The longer the ride is, the more cash you will earn. Long-distance pickups are another factor that will let you earn more. Next follows the time that you spend while providing the service. So the more time you drive, the higher your fare goes. You also can make a bit more if you had to wait for a client.
Finally, there is a factor that can reduce your daily earning. This will happen if you choose to cancel a request. In this case, you will have to pay a cancellation fee.
When making Uber deliveries, your payments are calculated, considering two main factors: pickup and dropoff. What matters is the distance that you need to cover to make a delivery. Such factors as traffic and possible time delays also affect your eventual earnings.
If you want to make much more by Uber deliveries, your option is working in locations where clients offer food. The best period is busy times – periods of the highest demand status.
With deliveries, you make earnings for every dropoff, plus you are paid for pickup and distance.
Uber’s Commissions and Fees: How Do They Work?
Uber’s fee and commission policies are quite straightforward. When you provide a service with Uber, you get the most of what a passenger pays to the company. The passenger pays a booking fee for each minute and each mile of a ride. The resulting sum is then divided between the company and the drive – you. The amount of the resulting payment that Uber receives then goes to cover Service expenses mentioned earlier.
25% and above
To be precise, an Uber driver is charged somewhat 25% and above. The reason is that several extra charges get taken out of a driver’s resulting earnings.
Not so long ago, to make $10, a driver had to drive around 2.3 miles. However, today the situation has changed because Uber lowered the payments to its drivers. This resulted in 4.71 miles that a driver has to cover to make the same money as before. So basically, the overall distance increased almost two times.
Another thing you should know about Uber’s fees policy is that there is a booking fee and a safe rides fee. They are between $1 and $3. Every city has its own amount of these fees. But the most curious part about them is that a driver does not get to see these fees because they go directly to Uber.
This means that today Uber drivers need to work more and harder to make the same amounts of cash as they did in the past. And eventually, with all the fees and commissions calculated, you can see that Uber charges its drivers more than 25%. In reality, the number goes as high as 42.75%. Such a high fee makes it very unprofitable to do short rides.
How Much Exactly Will You Earn with Uber?
At the end of the day, how much you earn with Uber will depend on several factors, such as:
The number of rides/deliveries;
The distance you drive;
The time spent driving;
Car maintenance costs, including gas, insurance, etc.
Considering all these factors that vary by driver, city, and country, it is hard to give average numbers. However, there is information that says that a driver will earn about $21 to $22 hourly on average- and we can’t stress it more. If we take this sum and apply the perfect conditions of a 30-hour working week, we will get a $34K annual income.
Some will say that this is in no way enough. But we will have to pay your attention that most Uber drivers are students who choose this job to have extra cash while in college. In this regard, working for Uber might make sense.
In addition, we would like to say that an Uber employment policy includes a bonus program for drivers. Not quite often, but drivers do receive some benefits from the company in the form of sign-on bonuses and referral fees.
Getting an Advance from B9
If you are an Uber driver or only thinking about the idea of becoming one and you need money right now, here’s how you can get an advance from B9:
Apply for a B9 advance
With B9, you can apply for an advance online. If you are about to receive your first-time advance, download the B9 mobile application, complete the simple registration procedure, and set up your direct deposit to your newly-made B9 account. You will be able to activate your advance as soon as the payroll deposit is debited to your account. In case of in-time repayments, you can expand your limit up to 100% of the paycheck.
Get the money
After the approval of your B9 Advance, you will be able to transfer the required sum to your account immediately and with no additional charges.