Officially, Uber claims that it charges about a 25% service fee per trip. While this means drivers earn up to 75% off every trip, there is more to how earnings work or what percentage they get.
This is the primary reason Uber driver A may get higher pay than Uber B despite traveling the same distance. Other factors determining how much you earn as a driver include the service you offer.
This guide explains (in detail) what percentage Uber drivers get and how the company calculates its charges and payment. You will also discover the factors affecting this percentage and how drivers get paid.
What Percentage Do Uber Drivers Get, and How Is Their Payment Calculated?
On paper, drivers get up to 75% of their earnings per trip, while Uber receives 25%. However, these percentages are not static because Uber charges an upfront price based on the distance you are about to travel, traffic conditions, and surges.
This is why there are times when Uber may charge you up to 50% of your payment and times when it does not take up to the official 25%. A good example is traveling 25 minutes up the highway to pick up a client.
Uber may refuse to consider that for your upfront fee, probably because a driver closer to the client rejected his or her request. This means you get to earn more.
Uber calculates payment based on pick-up and drop-off distance, traffic conditions, and waiting time or time delays for pick-up and deliveries. Like with trips, the system also favors longer routes than shorter ones.
Factors That Affect What Percentage Uber Drivers Get
Knowing the factors that can affect how much you earn per trip or delivery helps you position yourself for better earnings compared to other drivers. These factors include:
1. Demand and supply
The market demand and supply for a specific location can affect a driver’s earnings. This is because areas with high demand and a limited supply of drivers typically enjoy surge pricing, a deliberate attempt (by Uber) to attract more drivers.
When you target these regions, you stand a better chance of earning substantially. You can even double or triple the regular percentage.
Conversely, areas with low demand and excess drivers will experience a decrease in earnings or get paid a lesser percentage per trip.
2. Distance and time
The distance and duration for each trip are other significant factors Uber considers before deducting the service fee. According to the company’s algorithm, drivers earn a higher percentage for longer journeys than shorter ones.
This is why drivers sometimes earn a higher percentage from a 20-minute tip than a 10-minute trip, even if the distance traveled is the same.
3. Choice of service
Uber offers various service levels, each with its pricing structure. For example, UberX (a regular service) is a popular option that often allows drivers to earn higher percentages than premium services like UberBLACK or UberSUV.
When and How Does Uber Pay Its Drivers?
Drivers receive their payment (an accumulation of varying percentages) once every week via a direct ACH bank transfer alongside a statement of earnings. How quickly it takes your earnings to reflect depends on the bank.
Aside from this standard mode of payment, drivers can opt to receive their earnings via the following:
1. Instant Pay
This payment method does not require you to wait a few days or up until a week for payment to reflect. You can also withdraw your earnings up to five times per day.
2. Uber debit card
You can also receive your earnings directly into a special Uber debit card via Instant Pay. Drivers may or may not be charged a transaction fee per withdrawal depending on their debit card choice.
FAQs
What are Uber’s best/busiest work hours?
The busiest hours are usually between Friday evenings and Sunday mornings. Drivers should target morning hours from Monday to Thursday
How much do Uber drivers make in an hour?
Averagely, Uber drivers should make at least $19 per hour. This figure can go up to $30 per hour in big cities like New York.
Does Uber deduct from a driver’s tip?
No, Uber does not deduct from a driver’s tip. Drivers fully control what they want to do with their tips.
Conclusion
Understanding what percentage Uber drivers get from each trip is important if you want to get started as a Uber driver or maximize your earnings. While Uber claims they pay their drivers about 75% of their earnings per trip, that can change.
The rideshare company considers several factors when deciding how much it pays its drivers. Significant ones include distance covered, surge pricing, demand and supply, and service level.
The bottom line remains that you must dedicate enough hours per week (at least 20) and stick to longer trips to earn significantly on Uber.
I hope you found this guide helpful. If you did, please see what you can do if Uber cannot find you a driver.
Thanks for reading.
