americanexpress/confirmcard
September 24, 2020
How Much Money Can You Make Driving For Uber Or Lyft?

How Much Money Can You Make Driving For Uber Or Lyft?

If you are a cabby or have been one in the past few years, then you must be knowing the complexities behind this profession. Nevertheless, we’ve kept our focus on how much money do they earn in this cycle of pick and drop of strangers! Let’s see if their regular tolls of being a cabby are worthy or not.

Traditional taxis are slowly being superseded by Uber or Lyft because of their fewer fares. A rider can save up to $4.50 per trip in cities like Chicago. Now, this was about the riders’ benefits. What about the cabbies?

Earn More As An Uber or Lyft Driver

uber vs lyft

Uber and Lyft companies are recruiting drivers via Social Media or advertising. They allow new drivers to earn a $300 as a signup bonus from their first 100 rides in a month. Many people get influenced by the advertisements put up by these companies and think of becoming a cab driver. This increase in ridesharing drivers raises inquisition amongst the passengers regarding the money they make.

So how much is it worth actually, let’s find out!!

It seems that drivers’ earnings are dependent on certain variables like the number of driving hours, the city a cabby drives in, costs of car insurance, prices of gas in their area, etc. It’s pretty much less than what these loud advertisements say and chances are they might get paid less than Uber or Lyft actually claim.

The fact is in whichever city a cabby drives, both Uber and Lyft fix a portion of every fare.

As per our research, the figures for Uber services are something like this:

  • Uber X – 20% (the cheapest service)
  • UberBlack – 25% (black car service)
  • UberSUV – 28%

Lyft takes 20% of each fare. It also includes a city tax of around 8.875% and 2.25% fee is reserved for Black Car Funds.

However, these fares are highly variable. Depending on the customers, peak hours, and traffic congestion, the companies can revise these fares as per their convenience. Uber drivers are also expected to abide by these rules when they sign up as a driver in the beginning.

At times there is a temporary ‘price cut’ which often becomes permanent and hence unacceptable by Uber drivers. These surprise price cuts also raise a feeling of protest amongst the Uber drivers.

We’ve discussed about ‘price cuts’ but there is a lot more to it! Ghost factors like gas, car washing/servicing, insurance, toll taxes, timely maintenance of vehicles, car payments, etc are certain hidden costs in ridesharing services.

All these factors reduce the total earning of drivers to $4.54 – $12 per hour. We haven’t accounted for the frequent maintenance if a cabby is a frequent driver, not to forget those sick passengers who compel you to go for car wash more often than not!

If we talk about those few drivers who opted for making their personal vehicles as commercial, they are subjected to more losses. Ridesharing experiences are inclusive of the passengers who are also car damagers. They are likely to ruin vehicles quickly. Eventually, drivers have to replace their car within a year of making their personal car commercial to escape the losses.

So the amount of money like it seems is not really much for the Uber and Lyft drivers. The above-mentioned factors take a toll on the earnings of cabbies. One may ask this question, ‘Is it worth it to become an Uber or Lyft driver?’

Probably, not more than an ordinary business.

Can A Cabby Increase These Money Figures?

It is extremely likely that by implementing certain strategies a driver can increase their earnings and if they minimize the expenses on a car and minimize tax write-offs, they might gain some profit also.

Apart from this, they can also take advantage of the surge in prices by positioning themselves in a certain way to maximize their mean fare.

Bottom line

If you’re looking for a part-time business, becoming a ridesharing driver is not a bad option! It all depends on your skills in minimizing expenses and maximizing profit to earn a pretty handsome amount of money.

However, we suggest you be prepared for the extra tolls and complexities that may hamper your ride-sharing experience at times!

Share

Leave a Reply

Your email address will not be published. Required fields are marked *