How Does Uber Pay Drivers?

How much does Uber pay it’s drivers? Read my article on that here.

This article covers how Uber pays drivers; the nuts and bolts of payment at Uber.

Uber is an app that allows everyday people to work as taxis  on commission. On average, the company collects 20% commission on every ride that’s booked through the Uber app, although recently many drivers have 25% commission taken out.

How Does Uber Pay Drivers?

Uber’s riders pay the driver in cashless installments using the rider’s credit cards  or Paypal. Collection and crediting is done after each ride.

For Uber Drivers it is a little different. Each week 80% to 75% of the driver’s share is wired to the driver’s bank account.There are no payments done through PayPal. Uber is a global marketplace and payments are made in the respective country’s currency.uber driver smiling

Cashless exchange systems make it easy for the users to pay seamlessly and also for Uber to collect commissions quickly.

How are people getting paid by Uber?

Payment is transferred electronically to the driver’s bank account after sign up in the Uber Vault. Test deposits are made to verify that you entered all information correctly. Uber does not encourage tipping for the drivers but some passengers still pay cash tips as well, so you may get extra pay that way. There is a new separate tipping app called Vugo that allows some drivers to get cashless tips through Paypal by mounting a tablet where riders can use it.

You get paid by Uber once a week on Thursday. Pay period is from Monday – Sunday. The weekly cutoff is Monday morning at 4:00 am. You should receive notification on what you will be paid on Monday or Tuesday then get an e-mail telling you on Wednesday letting you know the amount that will be deposited into your account on Thursday. On Thursday you should receive an email telling you that the money has been deposited.

Surge pricing, where you get paid more during peak hours which are often late at night when no one wants to work, can make the rider’s fare more expensive and the driver get a lot money per mile.

Average pay of Uber drivers is a topic of much debate. It depends on many factors such as :

  1. minimum fare in your area
  2. your car expenses, high or low
  3. how far an average fare is in your area and how far you have to drive back without a passenger (“dead miles”)
  4. pay per mile in your area
  5. surge pricing (usually the highest from 11 pm to 2 am Friday and Saturdays)
  6. your tax bracket (don’t forget 15% self employment, state and federal taxes are not taken out)
  7. how much competition is in your area from other drivers that keeps you from getting many fares per hour
  8. whether you drive Uber x or another type of Uber where you don’t use your own car
  9. special car type such as bicycle and disabled capable
  10. promotions and guarantee events offered by Uber at times

The opinion of is that a driver makes an average of $15.73 an hour as of this writing.

Some more skeptical articles say $8.80 to $11 an hour.

Here is an ad from my home town from Craigslist for Uber

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The benefits of working for Uber part time include

1. Ultimate adaptability

An Uber driver can work as much or as little as they want. The driver app can be turned on whenever a driver wishes to work and turned off just as easily. The driver makes their own schedule. This is my favorite part of Uber driving. I drive when I want and when the hourly rate is the highest. Also when traffic is slower.

2. No manager supervising

Despite the fact that there is a manager for the drivers and some of the time they do give recommendations or evaluate drivers, generally there is no supervisor dictating what to do and when. A driver is on their own to go where they please when they please. The driver rates the passengers as well.

3. Meeting new people

People use Uber around town for all kinds of reasons. Each time a person gets in the driver’s car, an opportunity for social interaction is created. I love meeting people from all over the country and the world. I love showing them my home town and giving them recommendations on where to go and what to see.

4. Seeing new things

As people go to different places for various reasons you get to see neighborhoods you didn’t know about, hear of new events you didn’t know were going on, and become more acquainted with the city that you drive in.  You might even meet someone to network with for your other business activities!

5. Downtime

Often there is downtime while waiting for a passenger to request a ride. While on-call, the driver can spend the time as they please. This time factors into the hourly earning performance, but it is not difficult work waiting for a phone to beep. I like to play my horn sometimes when I am waiting at the airport, although usually the airport is not the best paying place to be.

The bottom line:

Working for Uber lets you make that extra needed income, whether part-time or full-time. It might be a place to work while looking for your dream job, or a thing to do if you are partially retired or going to school.

You can also choose to work longer hours whenever you can. Uber offers you the chance to work and earn at your own convenience.

Check out our Uber Driver Store for some items we recommend for drivers

Sign up now as an Uber driver and receive a $25 to $750 bonus, depending on your city, after you start driving

Sign up now as an Uber passenger using this link and get $15 free credit on your first ride

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  1. Do not have a bank account. Credit destroyed in last marriage. Rebuilding credit. Is there another firm if pay for drivers???

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