How much can you earn with Uber in the United States
How much can you earn with Uber in the United States
If you are looking to generate additional income, or even if you want to explore a new activity full-time, you may have considered becoming an Uber driver. Of course, one of the most important factors is: how much do you earn in Uber in the United States? Know some of the keys that you must evaluate to make your decision.
Uber has made estimates that put the average income at up to $40 an hour in the United States. Of course, these are calculations in large cities, where the demand and the distances traveled are greater. Other more conservative estimates place it at around $10 to $15 dollars per hour as the national average.
How the fee is calculated
The first thing to consider is how Uber calculates the fares for rides and, subsequently, payment for their “driving partners.” The platform takes into account several factors when defining how much it will charge passengers, where the type of vehicle or the distance is just a.
In simple terms, payment is based on the number of trips booked and successfully completed based on the following variables:
Basic rates.
Location.
Trip distance.
Dynamic rate (time of day and demand).
work frequency.
Other incentives.
One of the recommendations that Uber makes to its collaborators is to review the heat map in the application so that drivers can know when and where the demand for passengers is highest and in this way they can generate more income.
Once a trip has been successfully completed (or if the passenger cancels it more than two minutes after requesting it, better known as a cancellation fee), the driver does not receive the full amount that the passenger paid.
Uber charges a 25 percent commission on the total cost that was applied to the passenger, which is intended to cover the use of the software, collection and transfer of fees, credit card commission, and the distribution of invoices to customers, according to the company.
However, this amount must be considered a reservation fee and a safe trip fee, which can be between $1 and $3 dollars, amounts that are not part of the drivers’ income.
In this way, the commissions that the platform finally applies can be higher than 25 percent when it comes to short trips.
Taxes
In the United States, Uber drivers are 1099 contract workers, meaning they can set their own hours and have their own tools to get the job done. In this way, they are responsible for the maintenance of the vehicle, its permits, and fuel.
For this same reason, they must pay income tax on the earnings they make in Uber, and self-employment tax (7.65%, half of what dependent workers pay) if their income exceeds $400 annually. to cover Medicare and Social Security.
How much does an Uber driver earn in the United States?
