If you are thinking about starting a career as an Uber driver, it may be a wise move. Many people have benefitted from this lucrative career. But how much can you actually make working for Uber? In this article, we will break down the other expense categories from the charts in more detail.
How Much Can I Make from Uber Driving: Average Expenses
If you are wondering what kinds of expenses Uber drivers have, here is a list of the common expenses you will encounter should you choose this profession.
Uber’s Service Fees
Uber takes around a 27.5% cut of each ride you do. This is the service fee that they charge to their drivers. The service fee is charged per ride and not per hour. So if you make an hour round trip in which you pick up and drop off the same person, you will still only be charged one service fee.
You Need to Think of Car Running Costs
Running costs for your vehicle will vary from person to person, depending on how much you drive and how you drive. Some people drive around in cars with higher fuel consumption, which obviously will cost you more in fuel.
There are other expenses to consider as well, such as the cost of tyres, insurance, tax and maintenance. You may also need to calculate the wear and tear on your vehicle.
The cost of running your vehicle forms the highest cost of running your Uber business. You will have to take the cost of your car minus the residual value in the first year and put that cost into the equation. If you are thinking of buying a car, then you can use the residual value calculator to work out the cost of your car minus the residual value to give you your running cost for year one.
Other Expenses for Uber Drivers
As an Uber driver, you will be responsible for your own expenses as well. You will have to pay your own tax, insurance and fuel. An Uber driver will be required to have basic insurance on their vehicle, and this is not included in their calculation. The costs will be calculated in the overall average income for Uber drivers.
What Is The Uber Driver Payout Percentage?
After all the expenses have been accounted for, an Uber driver will be left with a certain percentage of the total fare of the ride. Uber has never released the exact payout percentage to their drivers. You can only begin to estimate this figure if you have knowledge of some basic maths and tax laws.
Is Uber Driving Worth It in Australia?
Uber is a great way for many people to make some extra money. It is also a great way for people to begin a new career. There is no reason why you can’t be an Uber driver and earn good money from it. Some Uber drivers will work full-time, even making enough to quit their other jobs, but many will work either in their spare time or as a part-time career.
Research shows that Uber drivers make around $16 per hour after accounting for all expenses. This may be a little disappointing to some people, as others have stated that they make up to $30 per hour. Of course, not everyone makes the same amount as everyone else, and the more time you spend driving and the longer distances you drive, the more you can make.
If you need help with accounting for Uber drivers, use the app Rideshare Tax. This is a free app designed for rideshare drivers. Download today!