2022 was the first full year we have been free of extended pandemic-related shutdowns that seriously affected business. Earlier this year, Uber reported its quarterly revenues grew 105% year over year. Let’s look at Uber driver earnings in Q3 2022 and factors that point to continued good earnings in 2023.
In this blog post, we cover
- Uber earnings for Q3 2022.
- What can drivers expect in 2023?
- Tips on how to increase earnings as an Uber driver.
- Make Gridwise a partner.
Uber earnings for Q3 2022
What did Uber drivers earn per hour?
Uber drivers pocketed median gross hourly earnings of $20.78 per hour in Q3 2022, down from $21.87 in Q2. Gridwise arrived at these figures by analyzing the reported income of drivers who use the Gridwise driver assistant app to track their earnings and mileage.
Uber rideshare driver earnings for Q3 were up. Lyft drivers earned median gross hourly earnings of $19.03 in Q3 2022. This can be attributed partly to Uber’s dominance of the rideshare market. As of May 2022, Uber claimed 72% of the US rideshare market, according to Bloomberg.
How much do Uber drivers earn per ride?
Some drivers prefer to view their earnings on a per-ride basis. The median per-ride earnings of Uber drivers for Q3 2022 were $13.30. This was down from Q2 2022, when median earnings per ride were $14.57.
What did Uber drivers earn per hour in tips?
Of those gross earnings, drivers earned a median of $2.17 an hour in tips in Q3 2022, or about 10.44%. This compares to Q2 2022, when drivers earned a median of $2.25 per hour, or 10.29%. Like almost all gig driving services, Uber passes on 100% of tips to the drivers.
What did Uber drivers earn per month?
Uber drivers earned a median of $1,061.75 per month in Q3 2022. Again, the trend we saw in all the other earning categories continued in this one, too. Earnings were down compared to the previous quarter when drivers brought home median gross monthly payments of $1,102.75.
Why the drop in earnings?
It’s difficult to analyze precisely why there was a drop in earnings in Q3 2022. Many factors impact rideshare usage. The third quarter, which ran from July 1 to September 30, means that for the most part college and university students were taking a break—a factor that many drivers have to incorporate into their strategy.
Another element this year was the phenomenon known as “revenge travel,” identified as the extraordinary onslaught of vacationers, many traveling abroad after being homebound for almost two years during the pandemic. Revenge travel means fewer people stateside using rideshare. According to the marketing blog Fifty.com, the chief demographic of revenge travelers in 2022 were young professionals—incidentally, the same demographic that uses rideshare.
What can drivers expect in 2023?
Drivers can look forward to increased earnings in 2023. There are several factors influencing this.
Continued recovery from the pandemic
The pandemic’s impact continues to decline as we learn how to live with the less virulent strains of COVID-19. People are returning to work in greater numbers (although, on a percentage basis, not as numerous as the increases we saw in 2021). Colleges and universities have returned to full sessions, bringing a reliable source of rideshare passengers.
Airports continue to bounce back
Thanks to a reduction in COVID-19 cases, business travel is back. There are lots of rides to and from the airports, opening up more potential income for drivers. For those new to Uber and ridesharing, check out the Gridwise blog post Airport Pickups: Rules for Uber and Lyft Drivers.
The increase in airport business brings the return of “airport-related business.” This refers to the numerous ride requests rideshare drivers get to transport passengers from hotels to business appointments and entertainment.
Fuel prices inch downward
Gas, one of the chief expenses for rideshare drivers, continues to slide as inflation and international crises loosen their stranglehold on the economy. Drivers have also benefited from learning how to conserve gas. Blog posts such as 13 Ways to Save Money on Gas as a Rideshare or Delivery Driver have been invaluable for drivers. The smart ones will continue to heed this information, even as gas prices return to pre-inflation levels.
A growing recognition that rideshare is a cheaper alternative to driving under the influence
One factor that doesn’t get much attention is the option rideshare offers to individuals who have spent the night drinking and celebrating. A recent article in US News & World Report cited 17 studies that linked ridesharing to a lower level of alcohol-impaired driving and alcohol-related crashes. According to Forbes Advisor, the combined costs of a first-time DUI (court fines, DMV fines, attorney costs, insurance, etc.) easily total $20,000. More people realize that $20 for a rideshare after a night of celebration is a much cheaper (and safer) alternative.
Tips on how to increase earnings as an Uber driver
Have an Uber driver strategy
It’s tempting for new drivers to conceive of rideshare driving as random. They cruise around and wait for the app to offer them a ride. It is so much more than that. The best rideshare drivers start their shift with a destination in mind, a place where they know there will be more rides. As they get rides to different locations, they constantly adjust that strategy, armed with what they have learned as rideshare drivers.
“When I started rideshare driving, I focused on a territory,” one Southern California driver explained. “If a ride took me out of that territory, I dropped off my passenger and hurried back. Sometimes I turned the app off until I was back in familiar neighborhoods. After a few months, however, if I got dragged out of my territory, I would ask myself, ‘What opportunities are in this new area?’ That kind of mindset became a turnaround for me and boosted my earnings.
“A good example is a ride I got from the airport to Disneyland Hotel one afternoon. I was unfamiliar with the area, but I realized there was a good chance I could get a ride back to the airport. I planned on sitting in the hotel parking lot for a few minutes, waiting for a ride. I didn’t have to. As I pulled up, my app chimed with a ride, and it was right back to LAX.”
Part of a good rideshare driver strategy is knowing how people travel.
Events are back
Events are back to full strength. Major league baseball canceled very few games this past season, and concerts and other event venues returned to full schedules. The Gridwise app provides information on where events are in your area and when they let out. There are always lots of people looking for rides.
Pay attention to Uber driver incentives
Uber offers consecutive trip and Uber Quest promotions, allowing you to earn extra cash. Veteran rideshare drivers develop their strategies based partly on incentives offered.
As recently as November 2022, the Uber website offered new drivers $1,540 for completing 100 rides within their first 30 days. This incentive pays off for new drivers during that first critical month as a rideshare driver.
Work those tips
Drivers are always looking for ways to make extra money with Uber driver tips, from having a clean car to maintaining a playlist of eclectic music. Every top-level driver can tell you that going the extra mile means more tips, and they all have a story of that $100 tip they received. Gridwise detailed different ways drivers can earn tips a few months back in a blog post titled 12 Ways Rideshare Drivers Can Earn More Tips. Check it out.
How do you tell if you are doing well in tips as a rideshare driver? From the numbers we crunched, tips tend to comprise just over 10% of a rideshare driver’s income. Analyze your tips. If you are averaging more than 10%, you are doing well.
Treat ridesharing like a business
Do you keep all your receipts for car washes, music downloads, and the essentials for your emergency kit? Have you considered forming an LLC? What about saving for retirement? As a rideshare driver, you are in business for yourself. Treat it that way. As a start, check out this Gridwise blog post, Basic Business Advice for Rideshare and Delivery Drivers. You can also take advantage of the Gridwise mileage tracker, the best Uber rideshare mileage tracker available.
Consider renting a car
If you are a full-time rideshare driver, averaging 80 to 100 rides a week, it makes financial sense to rent a car. You save money on maintenance, brakes, tires, and more, and it also keeps those miles off your personal vehicle. Want more information? Check out this recent Gridwise blog post, Gig Driver Guide: Renting a Car for Rideshare or Delivery.
Enjoy yourself as a rideshare driver
Working as a rideshare driver is a unique way to make a living. You meet scores of new people each week, have engaging conversations, and go places you never knew existed, even in a town where you have lived for years or perhaps your entire life. There are few jobs like it. Enjoy yourself and embrace the experience. If you love what you do, you’ll be better at it.
Make Gridwise a partner
Gridwise’s features can help you make more money as an Uber driver. You’ll get a free mileage, earnings, and expense tracker, along with features that offer information on peak times at airports and event venues.
Gas prices may have gone down, but it’s still a hefty expense. Drivers are saving up to $50/month through the Gridwise Gas Program. Learn more about the discount in this post about the Gridwise Gas program.
Try out the free Gridwise app now!
And have fun out there.