How Much Does Uber Pay?

If you’re going out, out for the night, the easiest solution if you’re running out of time is calling up an Uber, as Charli XCX would say. Uber is a ride-hailing app that has become very popular in the UK and worldwide. It also expanded to be a food delivery service, Uber Eats, where you can order food from your favourite restaurants directly to your door.

Gig economy jobs are currently in the spotlight because they offer flexible work schedules and the ability to make money on your own terms. That’s why lots of people are getting interested in being Uber drivers or couriers, for example. You can set your own hours, earn anytime, anywhere, and get paid fast. Sounds perfect, innit?

In this article, we’ll go through the realistic earning potential as an Uber or Uber Eats driver, the ins and outs of the job, what factors might affect your pay.

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How much does the average Uber driver make per year?

According to an Indeed survey, an Uber driver, considered an independent contractor, receives an average of £13.32 per hour. Meanwhile, an Uber Eats delivery driver or courier, another service provided by Uber, receives an amount between £10.61-12.87 per hour. Calculating this per year, considering a normal workload of 41 hours per week, this would reach around £25,000-27,000 for Uber drivers and £22,000-26,000 for Uber Eats drivers or couriers.¹

The amount of money you receive per hour for the minimum wage varies based on age. Individuals who are 23 years and above are entitled to the National Living Wage (NLW), which amounts to £10.42 per hour. For individuals between the ages of 21 and 22, the hourly wage is £10.18, for those between 18 and 20 years of age, it is £7.49, and for individuals who are below the age of 18 or who are apprentices, it is £5.28. As a result, the Uber hourly wage is slightly higher than the NLW.²

How much do Uber drivers get paid/earn?

The amount you make driving or delivering with Uber depends on when, where, and how often you drive. You earn a base fare for each standard completed trip plus amounts for how long and far the journey is. The rates per-minute and per-mile vary by city.

You can maximize your earnings working during peak hours, evenings, and weekends with higher demand, resulting in a higher payment. You can check the heat mat in the app to find out when and where rider demand is increased so that you can get extra money through surge pricing. They appear as red, orange, and yellow colored areas.

The riders also fund a booking fee, and in most instances, you’ll receive a cancellation fee if a rider cancels a request. Additionally, you make money on other passenger pickups on Pool while waiting for riders and on minimums for short trips. So, in the end, you’re earning way more on top of the standard fare.

In-app promotions are also an excellent feature to increase your payroll. They’re based on where the Driver app expects the most ride requests in your area and help you plan and set goals, maximizing your workflow. You can, for example, get extra money if you complete a certain number of trips in a set amount of time when the offer is available.

Uber Eats drivers or couriers’ earnings are based on the number of deliveries completed. Similarly to being an Uber driver, there’s a standard fee for each delivery. Before you accept a trip, you’ll be provided with upfront trip information containing the name and location of the restaurants, your pickup and drop-off locations, the minimum earnings, and the total estimated time and distance.

Once completed, you’ll receive a comprehensive breakdown with all details, including tips or tolls added or reimbursed. In addition to these standard amounts, you earn for every dropoff, which is good when you get multiple orders. You can boost your income if you stay at busy times in places where more people order food. An important hint is to sign in to both Uber and Uber Eats during rush hour and mealtimes because you can increase your chances of getting more delivery requests when planning around meals and commutes.

Tips provide a significant increase in your final earnings. Riders and Uber Eats customers can tip, from preset to custom amounts, on their apps right after each trip or delivery. It’s very easy to receive tips directly through the Driver app, with zero fees applied.

If your customer pays you by cash, you get paid immediately after you complete a trip. The app will show how much you should collect and calculate the fees you owe to Uber. Your total earnings are transferred to your bank account weekly free of charge, but you’re able to cash out tips and earnings faster if needed. If you select the two-day cashout option, your money will be available within 1-2 business days, and you won’t pay any fee for it, but with the instant option, you receive your money in minutes, with a cost of £0.50 per withdrawal.

Benefits of Uber

When working as an Uber driver or Uber Eats courier, flexibility and independence is what’s all about. In gig economy jobs like these, you have the flexibility to organize your working hours around other responsibilities and [choose when and how often you work. Another potential benefit is the possibility of earning higher pay during peak times or in areas with higher demand for rides or deliveries. Uber may offer drivers surge pricing or bonuses, which can result in increased earnings.

However, that may not be an easy street, and there are some cons that you should consider. One major issue is the lack of job security and benefits. You are considered a contractor rather than an employee. Therefore, you aren’t entitled to benefits like sick pay, holiday pay, or insurance. On top of that, you’re responsible for the costs of vehicle wear and tear, which can be very significant.

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After reading this article, you should be ready to start working as an Uber driver or Uber Eats courier. This job’s advantages include a flexible work schedule and the opportunity for increased pay during peak hours with surge prices and promotions. However, the disadvantages, such as the lack of job security and fluctuant income, should be considered too.

Sources used:

Sources last checked on date: 13-May-2023