How much do rideshare (Uber and Lyft) drivers make in 2020? [January 2020 update!]

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Curious how much rideshare drivers are making in 2020?

Well, in this report we’re going to cover how much rideshare drivers (Uber and Lyft drivers) make per hour, per mile, and per trip in more than 32 markets across the US.

Here’s what we’ll cover:

  1. How much rideshare (Uber and Lyft drivers) make per hour
  2. How much rideshare (Uber and Lyft drivers) make per mile
  3. How much rideshare (Uber and Lyft drivers) make per trip
  4. Estimated rideshare driver expenses
  5. How rideshare drivers can earn more

Let’s not waste any time and dig in!

How much do Lyft, Uber, and other rideshare drivers make before expenses?

Rideshare drivers in the United States log 100,000+ miles per day and track $50,000+ per week using Gridwise. So for our earnings reports, we look at the anonymized driving statistics for drivers in a number of markets where we operate.

For the purposes of this report, we have analyzed the earnings and mileage of over 100,000 drivers in various markets across the United States.

Because of our data collecting methodology, our earnings reports are far more accurate than any driver earnings surveys available as drivers log their trips & earnings on Gridwise as they drive multiple times per week.

So not only are the reported earnings accurate, but drivers don’t cherry-pick their best or worse days to show us. This gives us the most realistic view of how much drivers are really making over time.

Please note that the below figures represent each rideshare drivers earnings AFTER the TNC (Uber/Lyft/Juno/Via/etc.) take their share and BEFORE any expenses (including taxes).

See the chart below to understand how much drivers made per hour in 2019 AFTER TNC commission and BEFORE Expenses.

MarketEarnings Per Hour MedianEarnings Per Mile MedianEarnings Per Trip Median
Pittsburgh, PA$18.80$0.96$11.28
Los Angeles, CA$17.07$0.87$9.84
Dallas, TX$15.64$0.70$10.95
Phoenix, AZ$16.78$0.71$10.00
New York, NY$20.96$1.10$13.33
Washington, DC$17.44$0.94$10.23
Boston, MA$20.88$1.07$10.95
Chicago, IL$17.84$0.98$10.78
Baltimore, MD$15.90$0.81$9.90
Atlanta, GA$13.79$0.66$9.67
Miami, FL$12.69$0.69$8.67
Austin, TX$17.19$0.84$10.88
Detroit, MI$16.60$0.68$10.65
New Jersey$18.41$0.91$10.50
Houston, TX$14.26$0.63$10.85
Philadelphia, PA$17.22$0.99$9.71
Bay Area, CA$21.21$1.06$11.67
San Jose, CA$21.80$1.00$11.51
Seattle, WA$20.35$1.14$11.47
San Diego, CA$17.15$0.79$9.39
San Antonio, TX$12.44$0.64$9.29
Columbus, OH$14.46$0.76$10.05
Indianapolis, IN$14.69$0.66$9.29
Denver, CO$19.10$0.87$11.84
Jacksonville, FL$13.87$0.64$9.09
Charlotte, NC$13.57$0.62$9.31
Las Vegas, NV$15.37$0.89$8.61
Oklahoma City, OK$14.05$0.62$8.29
Nashville, TN$15.52$0.77$10.00
Kansas City, MO$16.85$0.69$11.23
New Orleans, LA$14.33$0.90$10.31
Tampa, FL$12.55$0.63$9.01

Below, you can see how much rideshare drivers made across the country per month:

Here we can see that rideshare earnings dipped during the Summer months of 2019, which could be a result of multiple factors. For one, students are no longer in school during this time period and university students are one of the most common sources of rideshare passengers.

Uber also began to roll out its new surge pricing which negatively effected driver earnings in Spring 2019. This may have had an adverse effect on rideshare driver earnings.

Finally, people are just more likely to walk during the Summer months, so passenger demand is likely to naturally fall.

How much do rideshare (Uber and Lyft) drivers make per mile

Earnings per mile also decreased during the summer months for likely the ssame reasons as earnings per hour decreased.

How much do rideshare (Uber and Lyft) drivers make per trip

The median earnings per trip did not change drastically from month to month during 2019. This likely means that decreased earnings were the result of less ride frequency rather than less pay per ride.

How much are rideshare (Uber and Lyft) driver expenses?

Expenses for rideshare drivers can be broken down into six major categories being fuel, insurance, maintenance, repairs, depreciation and taxes.

Fuel Costs

The cost of gas is the largest variable cost that rideshare drivers face and your cost will depend on your location and the vehicle that you’re driving. According to MIT’s 2018 report “The Economics of Ride-Hailing” rideshare drivers spend between $.05 and $.27 per mile on fuel costs.

These graphs were taken from MIT’s working paper The Economics of Ride Hailing: Driver Revenue, Expenses and Taxes

Insurance

Insurance costs for most rideshare drivers represent a minor fixed cost. Drivers can add rideshare coverage to their current coverage for as little as $20 per year depending on your location, driving record, and age. For the purposes of this report, we have combined the estimated cost per mile for insurance and maintenance/repairs. See the next section for that calculation.

Maintenance and Repairs

All too often rideshare drives overlook maintenance and repair costs. Little things like oil changes, car washes, and small repairs will quickly add up. Many drivers create a “Maintenance fund” for themselves which is simply a savings account that they pay into each month as an expense in an effort to evenly distribute maintenance costs throughout the year.

Edmunds offers a 5-year cost of ownership calculator that gives you an average cost of maintenance and repairs based on national averages. You can find your cost of ownership calculator here.

In MIT’s report “The Economics of Ride Hailing: Driver Revenue, Expenses and Taxes” they estimate insurance, maintenance and repair costs have a median of approximately $0.13/mile.

These graphs were taken from MIT’s working paper The Economics of Ride Hailing: Driver Revenue, Expenses and Taxes

Depreciation

Another overlooked cost is depreciation. As drivers, we simply ignore that depreciation is a cost because it isn’t a cash-based expense.

However, this is a real and tangible cost. To estimate your own vehicle depreciation, you can use Kelly Blue Book to calculate the estimated loss of value as a result of one month of use as a ride-hailing vehicle. You can find Kelly Blue Book’s calculator here.

Our friends at MIT have calculated that the median depreciation for a rideshare driver is $.05/mile.

So what’s our estimated cost per mile?

MIT calculated that the median cost per mile including fuel, insurance, maintenance, repairs, depreciation is $.30 per mile.

Uber’s own Chief Economist then publically verified that this median expense figure was accurate when he analyzed MIT’s report in a later post on Medium, a blogging platform. So as a rideshare driver, you can assume that your cost per mile will be about $.30 per mile.

FAQ’s

Does this report take sign-on bonuses into account?

This report does not include income that drivers make from sign-on bonuses from any platform.

Does this report include bonuses like Quests, Driver Bonuses, or Uber Pro Bonuses

This report does not include income from any incentive programs like Quests or Lyft Driver Bonuses.

Is this post expense income?

For the purposes of this report, we are only calculating revenue AFTER commissions from the rideshare companies but before expenses as expenses can vary widely by person.

Does this report take taxes into account?

This report does not attempt to calculate after-tax income as this number varies significantly from driver to driver.

How can drivers earn more?

As rideshare drivers, we need to be aggressive when it comes to finding ways to earn more, not passive. There are a few key ways that we can do this.

Perfect your driving strategy

So full transparency here, I’m going to plug Gridwise here. That’s because the smartest thing that a driver can do to earn more is to optimize their driving strategy, and using Gridwise is the best way to do that.

How?

Do airport trips the smart way

Not every rideshare driver is the type to wait in the airport queue, but every driver finds themselves driving passengers to the airport at least a few times a month. So when you find yourself at the airport, it MAY make sense to wait there for a ride that is likely going to be a long trip.

To find out if it’s worth your time to wait at the airport, take 15 seconds to open up Gridwise and see how many passengers are flying in and how many drivers in sitting in the queue.

If there is a peak in arrivals and not too many drivers in the queue, then it’s probably worth your time to wait at the airport.

Know Your Event Calendar

Every driver at one point on another finds themselves searching for riders.

It happens to the best of us.

You can minimize the times that you’re in these situations by simply knowing what’s going on in your city. That way, when things start to get dry, you know where there will be passengers.

Again, you can quickly check your free Gridwise app to understand what’s going on in your city.

This DOES NOT mean surge chasing, this means surge predicting.

Maximize your tax deduction

If you’re a rideshare driver, you CANNOT rely on Uber, Lyft, or any other rideshare company to give you your taxable mileage.

Why?

Because they could be missing 1000’s of miles that you should be deducting.

Even though they send you a log of trips that you make with passengers each year, they DO NOT capture the miles you drive between pickups which are 100% deductible.

Think of all the dead miles that you drive to go pick up a passenger or when you’re searching for a passenger…

That’s $1000’s in tax deductions that you could be missing out on if you solely depend on the reports that rideshare companies give you.

So use a mileage tracker, like Gridwise’s FREE tracker! (Ok so one more Gridwise Plug).

Leverage other sources of income

Rideshare drivers MUST understand how in demand we are.

That’s because there are dozens of companies that want to get their products in our hands and cars so they can market to the captive audience in our back seats.

And what do we say to companies that want to get in front of OUR captive audience?

There are multiple tactics that drivers can leverage to maximize earnings with in-car and out of car offers. Here are just a few.

PlayOctopus – With Play Octopus, drivers can add a game tablet to the back of their cars that passengers can play. This helps increase tip income and drivers can earn $100 per month from in-game advertising income

Cargo – With Cargo, drivers get paid to distribute free snacks to passengers. You literally get paid to give away free snacks.

Lit – With Lit, drivers can get paid to rent cell phone battery packs to passengers

We have a complete list of these Earnings Boosters in our app on the “Promos” tab.

You can also check out a few of these articles below that talk about driving strategy.

4 Highly Effective Strategies This Uber Driver is Using to Maximize Airport Earnings

[Update!] 6 Rideshare Driver Strategies & How They Can (or cannot) Work For You

How Rideshare Drivers are Maximizing Their Earnings Using Destination Filters

[Update 2018!] Rider Interaction Strategies for When You’re Stuck in Traffic

How This Full-Time Student and Soon to be Dad Became a Highly Profitable Rideshare Driver in Days. Not Months.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Related Posts

Ready to earn $300 more per week?

Download Gridwise now for free.

Earn $300+ more each week by knowing where passenger demand will be

Download the free app today!