What Is Uber?

Uber is an on-demand cab aggregator that operates on a smartphone application and lets you book a cab to get from point A to point B, pre-calculating the fare, estimating the time of arrival, and offering an option to split the cost with co-riders, all with a few taps on the app.

The company disrupted the entire cab industry in 2008 when the founders were not able to find a cab on a cold winter evening. It all started with a simple question – “What if you could request a ride from your phone?”

Today, the company is estimated to have over 100 million monthly active users worldwide, is a unicorn valued at ~$60 billion, and provides ride options from affordable bikes and scooters to Uber Air.

  • UberX: The basic Uber ride.
  • Uber Pool: Shared rides.
  • Uber Comfort: New cars with extra legroom.
  • Uber Green: Electric vehicles.
  • Uber Black: Luxury cars.
  • Bikes: On-demand electric bikes.
  • Scooters: Electric scooters.
  • UberXL: Vehicles with carrying capacity of up to 6 people.
  • Uber Transit: Real-time public transport information.
  • Uber WAV: Wheelchair accessible vehicles.
  • Uber Lux: Luxury vehicles with top-rated drivers.
  • Uber Black SUV: Luxury SUVs with top-rated drivers.
  • Uber Taxi: Local taxicabs partnered with Uber.
  • Uber Flash: A specialised taxi system designed for HongKong.
  • Uber Auto: On-demand auto rickshaws.
  • Uber Air: Flying vehicles.

Bonus Income

After the bonus is collected, I’d just use Uber to pick up passengers along the way to wherever you’re going using their destination feature. I realized it’s not worth driving full-time anymore. The reason is because the hourly gross wage drastically declined since I started due to a large increase in drivers.

The great thing about this $300 income is that I had no idea it was coming. It was completely out of the blue, like seeing an Amazon gift box from a stranger at my front steps during a non-holiday period. Furthermore, it’s not like I’ve written a ton of articles about my Uber experience either. I only have two dedicated articles out of 2,000+ articles on Financial Samurai that revolve around my Uber experience.

Out of the $414.21 income, roughly 25% was active, and 75% was passive. As someone who is trying to maximize his time based on an hourly wage, such a high ratio for passive income is solid!

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7. Drive for Uber Eats When There are no Rides

As we mentioned earlier, diversifying your income by working through other delivery and driver apps is a great way to increase your hourly earnings. And if you’re already driving for Uber, then it’s a natural transition to also drive for Uber Eats.

For current Uber drivers, signing up for Uber Eats is extremely easy. The driver requirements and vehicle requirements are the same – so if you qualify to work for one service, you can work for the other.

The two different platforms operate on different apps, so you’ll need to download both on your phone and switch back and forth between the two.

When you don’t have any ride requests coming through, switch over to the Uber Eats app and see if there are delivery requests instead. If you work in the middle of the day, this can really help you increase your earnings.

During lunchtime hours, most people are at work and don’t need rides. They’re much more likely to be ordering meals for delivery. Plus, with office and business deliveries, you might be able to grab a few larger orders. The more expensive the order, the more money you’ll make.

The hourly rates for Uber drivers can be pretty low – especially UberX drivers working for the lowest level of the service.

But that doesn’t mean that ridesharing can’t be lucrative. You can actually make good money, well above minimum wage, if you are strategic about your shifts.

Do most of your driving in central areas during Surge pricing. Work during morning and evening rush hours. Drive late on Friday and Saturday nights when the bars are closing. And know what’s going in your city so you can take advantage of big events such as football games and concerts.

Share your referral code with potential new drivers. Once they complete a certain amount of rides, you’ll earn a bonus. And you can continue to earn bonuses for every new driver you recruit.

Use an app like SherpaShare to track and reduce expenses. At tax time, this will make it extremely easy to maximize your deductions and reduce your tax payments.

Driver for Lyft or Uber Eats at the same time. When Uber is slow, have one or two other apps you can switch back and forth between to keep you busy on the road.

Take advantage of weekly promotions with quests and boosts. You can earn extra money per ride or earn a bonus at the end of your shift if you complete a certain amount of rides within a certain time frame.

And most of all, go above and beyond for your customers. The easiest way to put more money in your pocket is to bring in great tips!

Gross vs. Net Income

Several significant deductions will reduce the amount that Uber drivers net. These are important to consider when considering gross versus net income as a driver.

Uber drivers are contract, or 1099, workers. This entails they work on their own schedule with their own supplies. Drivers are responsible for all vehicle maintenance, gas and insurance compliance.

As contract workers, income taxes are not withheld from pay. Drivers must remember that they owe taxes on the pay they receive from Uber. Not only do they need to calculate their income taxes, but they must also pay a self-employment tax if they make more than $400 per year as a 1099 contractor.

The self-employment tax is 15.3% and covers both the Medicare and Social Security tax contributions that both employee and employer pay in a typical job. Since Uber drivers are self-employed, they must pay 7.65%–half of the 15.3% total–more than they would as regular W-2 employees.

How much can you earn with Uber Eats?

How much you make through Uber Eats may depend on how often you deliver and how many orders you choose to accept. The fare breakdown is pretty straightforward, though the amounts you can earn may vary from city to city.

Your earnings will be reflective of your trip’s time, distance, and city. But any tips you earn will stay in your pocket. Uber Eats may also provide certain promotions for delivery-partners in your city. The exact fare you’ll receive for making deliveries may depend on your city and each trip.

To get paid, you’ll need to set up direct deposit to a bank account. Your earnings are automatically deposited weekly. Uber Eats also provides an option for cashing out your earnings up to five times each day with Instant Pay. To cash out with Instant Pay, you’ll need to add your debit card to your Uber account or open an Uber Visa Debit Card from GoBank. If you use the Uber debit card, you’re free to cash out up to five times a day without incurring a fee; other debit cards will incur a $0.50 fee per cash out.

Sign Up To Deliver With Uber Eats Uber Eats Benefits Earn money with your car, bike, or even a scooter in some cities! Set your own schedule and be your own boss You can access your earnings up to 5X per day with Instant Pay (Additional terms and conditions apply) Sign Up To Deliver With Uber Eats

2. Track Your Mileage

So, you’ve signed up for Uber Eats, you’ve been approved, you’ve downloaded Uber Driver App and you’re ready to ‘Go Online’. STOP! Uber Eats drivers are independent contractors.

You can claim mileage on your tax return if you kept diligent track of it. You can use a pen and paper to track expenses and create a journal of your tracking miles. There are several mileage trackers App in the market.

We especially like to use one because it’s 100% free. Take a look at our guide on the best FREE App to track mileage.

Uber’s Pay Structure

Uber’s pay structure is dynamic and flexible. It is calculated according to location, time of day and frequency of work. Pay may vary on a day-to-day basis.

Uber provides “earnings estimates” instead of a set wage to help drivers identify their likely profits. These should be viewed strictly as projections. They are based on what other drivers working the same hours in the same location earned over the previous month.

Bonus Offer: Bank of America $100 Bonus Offer for new Online Checking Accounts. See page for details.

Qualifying Earnings

Uber drivers earn from a combination of factors including customer tips and trip fares. Occasionally things like Quest promotions may lead to additional earnings.

What Is a Base Fare?

The base fare is the flat rate that a pick-up pays. Time and distance increase the trip fare.

Does Surge Pricing Affect Drivers?

Uber uses surge pricing when demand is high, increasing the costs of rides. Uber drivers can use a local map to find surge prices and time their availability. This can increase earnings.

Make Your Money Work Better for You

Cancellation Fees

Drivers are protected if a ride is canceled while they are en route to pick-up. They will receive a cancellation fee.

How Much Do You Make Working for Uber?

A national average of $19 an hour may sound promising, but you might want it broken down further. The amount you make depends on the city you’re driving in, how often you drive, and your expenses. For example, according to a 2016 report from BuzzFeed News, drivers in Denver, Detroit, and Houston were found to earn less than $13.25 an hour after expenses. Taxes can cut into your pay further. A Washington Post evaluation of BuzzFeed’s analysis and additional data and interviews found that a driver in Denver earning $13.25 per hour would bring home only $11.21 per hour after taxes.

How to earn extra cash? 11 ideas to make more money while you deliver for Uber Eats

How to earn and how to make more money? If you are looking for an idea to make more money while driving for Uber Eats, you can find 11 here!

Making Money on Uber FAQ

Can you make good money with Uber?

Yes, you can earn good money with Uber. However, it is not a fixed income stream, so it varies based on your location, hours, trip lengths, and a host of other factors. For example, driving during busy times will earn you more money than slow periods. You must also consider the cost of doing business because all these factors will impact the total amount of money you earn per year. Insurance costs and income taxes will affect your net earnings.

How much does Uber charge per mile in 2021?

Uber does not have a fixed rate per mile, so earnings estimates vary. The amount riders pay, and the amount a rideshare driver receives is affected by various factors. For example, during surge times, the price per mile skyrockets. The pickup location, drop-off location, time spent, and booking fee also influence the total charge per ride.

Why are Uber prices so high in 2021?

Uber’s price increase in 2021 is primarily due to a driver shortage. Riders in certain parts of the United States have been complaining about the ever-increasing cost of Uber rides since the beginning of 2021. This is because when there are fewer drivers than customers, demand rises.

Is Uber cheaper than a taxi? No, the base fare for most Uber rides is traditionally higher than the base fare for taxis. However, some frequent commuters have reported that Uber is cheaper for fast, smooth, and long rides with minimal congestion. Traditional taxis are less expensive for rides in congested areas with heavy traffic.

How to Make More Money on Uber

Now that you know how to start working on the Uber platform, you can make additional income and increase your median income by having a good driving strategy. Here are some tips on making more money on Uber.

Take Advantage of Every Surge Period

When there is an increase in demand for drivers, the fare price and booking fee rise significantly above standard trip fees. The Uber app notifies you when there is surge pricing in specific areas, which you can use to boost your total earnings. While surge prices or amounts can be unpredictable, you can predict busy times to some extent and plan your schedule around these surge periods.

Save on Personal Expenses with Uber Partners

Uber has several partnership programs that help drivers save money on driver expenses. One of such programs is Uber Pro. Uber Pro is a loyalty reward program that helps you earn more money by saving up to 25 percent on vehicle maintenance.

Some drivers in this program may also enjoy 100 percent tuition payment at Arizona State University ASU online. If you qualify but do not want to attend school, a family member may use the benefit. To enjoy Uber Pro benefits , you must drive frequently and provide excellent services to your riders in order to accumulate points over time.

Earn Tips from Happy Customers

If you are an Uber Eats driver, you can make extra income from tipping. Uber doesn’t deduct any service fee from your tips. It is important to note that these tips are not mandatory, so you should not pressure your clients to tip you. All delivery drivers need to do is provide exceptional service. When the client is asked to leave a review, they will have the option to tip the driver.

Stay in the City Center

Driving without passengers will only cost you money in the long run. The same can be said about working in the suburbs. Even if you live in the suburbs, you should go to the city center in the morning and work there until you are ready to return home. You will find the most riders in city centers.

Download the Passenger App

To optimize the experience and earn more money, you should download the Uber passenger app. The app has features that aren’t available on the driver app. One powerful feature is the location of drivers. Passengers can see the locations with the highest number of drivers. You can use this and other trip details to your advantage.

4. Drive for Lyft at the Same Time

To make as much money as possible, you need to stay busy; the best way to do that is to diversify your income. Don’t rely on Uber alone to put money in your pocket. Instead, sign up for Lyft as well. Lots of people drive for both rideshare services at the same time because of increase ride opportunities.

When you’re driving for Uber and there aren’t any ride requests, you can log into the Lyft app and see if there are any Lyft ride requests nearby. You only make money when you have a rider in the car. By using both apps at the same time, you have a better chance of keeping your backseat full.

If you’re an existing Uber driver signing up for Lyft and doing Lyft rides for the first time, don’t forget to take advantage of the Lyft driver bonus. Similar to Uber, you can enjoy a sign-on bonus and other perks as a new driver for Lyft.

Uber’s Business Segments

Uber has three operating and reportable segments: 1) Mobility, comprised of its ride-hailing business, formerly known as Rides; 2) Delivery, its food, grocery, and other small item delivery service, formerly known as Eats; and 3) Freight, its freight shipping business. Uber provides a breakdown of revenue and adjusted EBITDA for each of these three segments.

Uber also reports results for an "All Other" category, which is now mostly comprised of revenue from its New Mobility offerings and products, such as providing access to rides through dockless e-bikes and e-scooters. This category did not generate any revenue or adjusted EBITDA in Q4 FY 2021. The company also reports certain costs not attributable to its reportable segments under a "Corporate G&A and Platform R&D" category, which posted an adjusted EBITDA loss of $489 million.

Results from these two other categories and any negative amounts in the reportable segments were excluded from the percentage calculations in the pie charts above and in the segment profiles below.

Mobility (formerly Rides)

Uber’s Mobility segment is its flagship ride-hailing business. It connects consumers with drivers who provide rides using a range of different types of vehicles, including cars, auto rickshaws, motorbikes, minibuses, or taxis. The segment also includes activities related to Uber's financial partnerships and transit offerings.

The Mobility segment generated revenue of $2.3 billion in Q4 FY 2021, up 54.9% compared to the year-ago quarter. It accounted for more than 39% of Uber's total revenue for the quarter. The segment posted adjusted EBITDA of $575 million, an increase of 96.2% YOY. It comprised nearly 96% of the adjusted EBITDA across all reportable segments.

Delivery (formerly Eats)

Uber's Delivery segment provides a platform for consumers to search for food and discover local restaurants, order meals, and either pick-up the meal at the restaurant or have it delivered. In some regions, the service also offers delivery for groceries, alcohol, convenience store items, and other select goods.

Revenue for the Delivery segment grew 78.5% YOY to $2.4 billion in Q4 FY 2021. The segment accounted for nearly 42% of the company's total revenue in the quarter. It posted adjusted EBITDA of $25 million, a significant improvement from the adjusted EBITDA loss of $145 million in the year-ago quarter. The segment accounted for more than 4% of adjusted EBITDA across all of Uber's reportable segments.

Freight

Uber's Freight segment provides a platform that connects carriers with shippers. It offers carriers upfront and transparent pricing as well as the ability to book a shipment. The segment also includes transportation management and other logistics services.

The Freight segmented generated $1.1 billion in revenue in Q4 FY 2021, up 245.0% compared to the year-ago quarter. It accounted for almost 19% of companywide revenue. The segment's adjusted EBITDA loss narrowed to $25 million in Q4 FY 2021 from $41 million in the year-ago quarter.

Set a Driver Destination

An excellent way to help monetize trips you’re already taking is to use the Driver Destination feature on the driver app, if available in your area.

With this feature, you can set a destination where you are already headed. The app will match you with passengers who are going near a route to your destination. The app allows you to set up to two destinations per day, which means you could potentially monetize your commute to and from your 9-to-5 without changing a thing about your driving habits.

Of course, setting a destination might limit the number of ride requests you receive, but this feature of the app can be a great way to make earning more convenient.

Common questions about Uber Eats

How long does it take to deliver with Uber Eats? The time varies to get started with making Uber Eats deliveries. The activation process consists of signing up for Uber Eats, submitting your documents, and completing the background check process. Can you actually make money delivering with Uber Eats? Yes, you can make money delivering with Uber Eats, but that doesn’t mean you’ll always come out ahead. At the end of the day, you have to consider that making money in the first place may cost you. This means accounting for expenses like gas and vehicle maintenance. If you’re delivering on foot or by bike, you may not have those expenses. As with any side gig or entrepreneurial effort, controlling your costs to maximize your earnings is up to you. Is delivering with Uber Eats worth it? Whether delivering with Uber Eats is worth it is up to you. This can depend on whether this side hustle helps you reach your personal finance goals and if you’re actually earning money at the end of the day. You’ll need to calculate how much delivering with Uber Eats is costing you — gas, wear and tear, etc. — and whether your earnings are enough to cover these expenses.

How I Mad Over $100 An Hour Driving For Uber

There are two ways any enterprising individual should think about ways to make money.

The first way is to think about the total amount of money you can earn in a year, since the yearly salary is the standard way to calculate income. If you think this way, you’ve got the employee mentality. There’s a natural tendency for the majority to slack off or do the minimum over time since you’re going to get paid a set rate, no matter how little you work. Gotta love it!

The second way to think about earning money is through the hourly rate. If you think this way, you’ve got the independent contractor mentality. I think in this way because I decided to hit the eject button from Corporate America back in 2012 due to boredom, a lack of correlation with compensation and effort, and my intense desire to be free.

I only want to actively work about 25 hours a week so I can spend time on my online business and do other fun things. Therefore, my goal is to maximize my income on those 25 units a week.

Driving Basics

If you’ve ever ridden in an Uber, you know how the system works. It starts when a passenger requests a ride on the Uber rider’s app. A nearby driver will receive a notification of the requested ride, and a driver will accept the ride. The app gives riders an upfront cost of the ride for full transparency.

When there is a demand for rides (examples could be at the end of a big concert, after several flights come in all at once at the airport, or when all the bars close), the cost of the ride could go up.

Drivers pay a service fee to Uber, but drivers also get to keep tips they receive.

But don’t forget that drivers are considered contractors for Uber. This puts drivers on the hook for gas, wear-and-tear on your vehicle, insurance, and any other associated costs. This can take a bite out of your earnings.

How Uber Reports Diversity and Inclusiveness

As part of our effort to improve the awareness of the importance of diversity in companies, we offer investors a glimpse into the transparency of Uber and its commitment to diversity, inclusiveness, and social responsibility. We examined the data Uber releases to show you how it reports the diversity of its board and workforce to help readers make educated purchasing and investing decisions.

Below is a table of potential diversity measurements. It shows whether Uber discloses its data about the diversity of its board of directors, C-Suite, general management, and employees overall, as is marked with a ✔. It also shows whether Uber breaks down those reports to reveal the diversity of itself by race, gender, ability, veteran status, and LGBTQ+ identity.

Uber Diversity & Inclusiveness Reporting   Race Gender Ability Veteran Status Sexual Orientation Board of Directors           C-Suite           General Management ✔ (U.S. Only) ✔       Employees ✔ (U.S. Only) ✔      

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