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How much can drivers make with Uber?

The expert

Michael Kambouridis

My name is Michael Kambouridis. I’m a CPA qualified accountant and a co-founder of Rideshare Tax. In order to start my business I drove Uber full-time. I’ve done over 5,000 trips with UberOLA and DiDi. My rating was 4.97  and I averaged about $40 per hour on a 30 hour week. Here are my tips and tricks to make the most money as a Rideshare driver.

Timing matters 

Drive around peak times for the best results. In the city of Melbourne, this is what I found to be the best times to drive inner city suburbs.

Weekdays:

  • 6am to 10am – airport runs and taking people to work.
  • 4.30pm to 7pm – people heading home from work or heading out somewhere.
  • 9pm to 12pm– people heading out during the week.

Weekends:

  • Fridays – all day and night.
  • Saturday – 6am to 1pm, nights from 6pm onwards.
  • Sunday – all day, it doesn’t matter what time you start.

This will vary from state to state but the same principles apply, try different times and you’ll see the best and most profitable times to drive.

Drive for all Rideshare companies  

Sign up to UberDiDi and OLA for more consistency. Passengers use different apps which all have their unique specials and advertising. If OLA has capped airport fares at 20 dollars for passengers for example, OLA will be getting more rides from that area.

Read your customer

To be great with customers you must first learn how to read them. You will get a feel of how the customer interacts with you as soon as they step in your car. Some will want to talk, some will want quietLearn to be on their level. If they are relaxed and cool, mirror this behaviour. If they act professional, adjust accordingly.

There is the occasional bad passenger, but that is such a small percentage I can remember about 10 incidents out of 5000 trips. These things happen in any type of business.

Keep your car clean 

How you present your car to passengers is important. They will rate you down for an unclean car. The rating a customer gives you effects the algorithm of how many jobs Uber will give you. The higher the rating, the more jobs and more money you will get.

I remember catching an Uber that had rubbish everywhere front and back…and a very low driver rating. I never rated him badly but I could see why this driver had such a bad rating. Especially in a pandemic, it’s best to keep cleaning supplies on hand in the boot to properly sanitise.

Personally, I would clean my car before every shift, so sometimes 2 to 3 times a day. It only takes about 5 minutes to spray and wipe down the inside of the car.

Chase the surge

Where it is busier, Uber will increase the prices for fares to influence the supply and demand for rides. You’re here to make money and you don’t want to waste time, so working at peak times will increase the chance of getting more jobs and getting paid more. Don’t keep driving if there are hardly any jobs. Go back home and come out later when its busy again.

Choose the right car

Find a car that’s great on fuel and low servicing costs. Rental costs are very high, therefore it’s best to get your own vehicle. This links to the next point…

Know your numbers and profit

You need to know what’s left over after, fuel, servicing, registration, insurance and all other car related costs.

 

 

With this profile, my average weekly income was $1,200.

There were some costs as well.

  • Fuel $120 per week (I chose a diesel car that was great on fuel and could punch out 850km per tank driving in the city).
  • Registration $15 per week) roughly $800 per year/52 weeks.
  • Servicing $20 per week – $250 a service average every 3 months. Again I chose a vehicle that was reliable and brand new and a great mechanic that looked after me.  
  • Insurance – $780 per year/52 roughly around $15 per week.
  • Cleaning $15 per week, I bought cleaning products and once a week I  would take my car to the car wash and wash it myself on the outside. 
  • Car repayments $100 per week.

So my real profit is: 1200-120-20-15-15 –100 =  930 per week.

There are other costs you will need to add like accounting costs and mobile data. Anything that goes into the upkeep of your rideshare business. There is tax and GST to be paid to the ATO as well but in most cases if you claim depreciation on the car this can offset any tax payable. 

 This will vary from each driver as your costs will be different to mine.  

Accept every trip!

The algorithm works such that the more trips you accept the more jobs you will get.

Get a great accountant!

This is one of the reasons we created Rideshare Tax. Drivers were frustrated and did not want to pay high accounting costs to get advice. I see so many drivers trying to do their own tax in the facebook groups and asking questions. The nonprofessional advice means not only will you be paying more tax and GST but there are sunken time costs, and no guarantee you will get your tax return right! Through my app, we save drivers 30% on average in tax  and GST.

So Is Uber Driving Really Worth It? 

Yes! If you follow my steps it can be profitable. If you need help seek a qualified accountant that understands the Rideshare business.

By |2021-01-05T23:16:37+11:00December 8th, 2020|Categories: BAS, Tax, Uber|Tags: |0 Comments

About the Author:

Michael is a Qualified CPA Accountant and Registered Tax Agent.

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