How to Make Money Driving Uber
The advancement of technology has provided services and products that make our lives easier on a daily basis. Several business models that aim to make our lives convenient are created regularly.
Amongst these businesses, the ride-sharing industry has continued to flourish over the past years. This industry is all about making public transportation easier. With a simple tap on the app or a website, you can easily order a car for your ride. It’s eco-friendly too! You get to share the car with other individuals along the way, hence contributing to the reduction of traffic.
Ride-sharing apps such as Uber does not just provide easy transportation. It also provides an opportunity for someone to make money, regardless if you’re just looking for a side-hustle or a full-time job.
So how can you exactly make money with Uber? The next sections of this article will show you how.
What is Uber?
The future for the ride-sharing industry looks very promising. In fact, the market size is projected to increase by nearly 20%. Its value is estimated to surpass $220 billion by 2025.
When it comes to ride-sharing, there’s no doubt that Uber has become a common household name. Uber is available in 700 cities worldwide.
Using Uber is pretty simple. You use their Uber mobile app to submit a trip request. Then, the system automatically finds an Uber driver near your location. Your designated driver will then pick you up and drive you to your destination. The app automatically calculates how long is your travel time as well as the cost of the said transport. It also transfers your payment directly to the driver.
The concept of “sharing economy” has become an inspiration to the birth of many revolutionary businesses.
Uber managed to become the undisputed king of the sharing economy. It provides a quick and affordable means for those who need a lift. Additionally, it also empowers anyone with a vehicle to earn money. The company has achieved remarkable success in a short period of time. Let’s take a look back at the origins of Uber and how it became one of the leading ride-sharing companies in the world.
History of Uber
Uber has had a wild ride since its creation in 2009. To date, it has over 19,000 employees, a market capitalization rate of $74 billion and annual revenues of over $11 billion.
The concept of this ride-sharing service was created after two of its co-founders could not get a taxi in Paris during a snowstorm. It has certainly come a long way since it was launched a decade ago. In just a span of 10 years, Uber has three million dedicated drivers in 83 countries and 75 million global customers.
The foundation of Uber came from a simple idea – what if you could request a ride right from your mobile phone?
Travis Kalanick and Garrett Camp experienced difficulty in getting a cab in a storm. This infamous snowstorm incident became instrumental in the creation of an idea for a new company called UberCab.
Uber is a German word that means “above all the rest.” UberCab introduced the company-client dynamic where a rider will simply tap a button on his mobile phone to find an affordable ride in minutes.
Uber Timeline
March 2009 – Garrett Camp and Travis Kalanick, along with college buddies Conrad Whelan and Oscar Salazar, created the “black car” ride service model that ultimately became UberCab.
June 2010 – UberCab was launched in San Francisco, California.
October 2010 – Uber dropped the “Cab” portion of its company name and stick with Uber. The founder believed that Uber does not function as a traditional taxicab, hence removing the term “cab” next to its name. The company enticed $1.25 million in capital funding to expand, attracting major investors such as Former Napster co-founder Shawn Fanning.
May 2011 – Uber was launched in New York City and received a massive resistance from the city’s taxicab industry.
August 2014 – UberPool was introduced. This ride-sharing model enables riders to share the ride with other riders and split the fare between multiple parties.
April 2015 – UberEats was launched in New York, Chicago, and Los Angeles. This food delivery service was a massive hit, especially for young millennials who are too busy to cook their meal.
May 2019 – Uber goes public on the New York Stock Exchange, with a market capitalization of $75.5 billion and an initial share price of $45.
Pros and Cons of Uber
Does the idea of driving for Uber as a side job sound enticing to you? Having this kind of side hustle provides a good income as well as full control of your schedule. Before you get too excited and jump on board, it’s worthwhile to know the pros and cons that come with driving for Uber.
Pros of Driving for Uber
Flexible Work Hours
One of the biggest advantages of driving for Uber is the flexible schedule that comes with it. You are not time constraint and you don’t have to punch in your time clock. Rather, you can work whenever you want. Also, you can work as little or as much as you want.
Nothing is more liberating than working when you want to. And since most Uber drivers have regular jobs, this work flexibility is perfect when you want to make extra money during your free time.
Immediate Payments
Nothing is as frustrating as having to wait for several weeks to get your hard-earned money.
With Uber, you get paid immediately. Your earnings are deposited directly into your account. If you want to take home a bigger amount, you can deposit your previous week’s earnings into your savings or checking account on Tuesday.
Meeting New People Everyday
Another advantage of driving for Uber is the opportunity to meet different kinds of people every day. You get to meet people from all walks of life, with different cultures, religions, and beliefs. If you love socializing and learning new things, then driving for Uber is definitely appealing to you.
Earning Tips
Uber drivers make an average of $17 per hour. Aside from the regular earning, you also have a huge potential for earning tips. Some passengers will leave you with a big tip, especially if they are satisfied with your service. You can earn as much as $100 per week for tips alone. Riders can either leave their tip on cash or through the Uber App.
Car Rental Program
Do you want to drive for Uber but don’t have a car or can’t afford to buy one?
Worry no more. Uber has made it possible for willing drivers with no vehicle on their own to have available cars. They have partnered with Hertz car rental program so you can still drive for them.
If you chose to participate in their car rental program, you have to pay a rental fee of $1000 per month. This amount covers the maintenance as well as insurance. Having to pay a monthly rental fee is definitely a strong motivation to get up and drive as often as you can.
Cons of Driving for Uber
Wear and Tear
You must already know that cars depreciate rapidly. Normal wear and tear is your biggest enemy if you’re making money out of your car. Your car value falls as you pack on miles. The longer you drive, the more repairs you may need. Additionally, you can never dismiss the normal wear and tear that comes with frequent use. Finding stains in your car’s upholstery is not uncommon.
Aside from major repair and issues, you also have to constantly change oils, replace your front brake or perform tire rotation.
Although Uber may help you with some expenses, you have to shoulder the wear and tear on your car. Make sure that you allot a portion of your earnings for repair or maintenance.
Benefits and Overtime Pay
Uber drivers are considered independent contractors. Hence, they are not eligible for any benefits as well as overtime pay. Additionally, you are also responsible for paying your own taxes. You should save 25% of your income for taxes. Since you are an independent contractor though, you are allowed to deduct expenses that are associated with your business income. After all of these deductions, your tax would be less.
Your Safety Could be at Risk
Since you are driving for strangers, your safety is always at risk. You may have heard some news of passengers making inappropriate advances on drivers. Though Uber has a feedback system to screen riders, you should take appropriate precautions at all times.
How to Make Money with Uber
Uber offers a great opportunity to be your own boss and earn extra money. Since you have full flexibility of your schedule, the power of earning as much on this side hustle is at your hands.
How can you make money with Uber?
Get Started with Uber
Before you can start driving, make sure that you comply with all the requirements. Before signing up with Uber, you must be of minimum driving age, have a valid US driver’s license, at least one-year driving experience and must have an eligible 4-door vehicle.
Additionally, Uber wants to hire drivers that are reliable and professional. They require a thorough criminal background check. You would also need to have personal auto insurance, however, Uber will provide primary liability insurance up to $1 million dollars once you accept a ride.
Once you possess all the requirements, you simply go to their website to apply as a driver. Fill out any applicable forms and go through a criminal background check and vehicle inspection. Then, download the Uber driver app and explore the platform while you’re waiting for the approval of your application.
Your total earnings depend on how much you drive. After all the expenses and cut from Uber, drivers make an average of $8.55 – $11.77 per hour.
If you want to take home a bigger earning though, you should not just rely on your hourly income or tips from your customers. Below are additional tips on how to make more money with Uber.
Get Paid to Place Advertisements
Advertising is still a front runner in marketing campaigns. If you want to earn a passive income while driving for Uber, why don’t you try signing up with Vugo and get paid to place their ads.
You may need activation and training, but you could potentially earn $100 – $200 per month once you’re up and running. There is no need to make adjustments with your driving habits to make extra money. You just simply set up a tablet in your car that displays ads.
Offer Snacks to your Passengers
What are the chances of driving for hungry passengers?
Feeding your hungry passengers using Cargo is an excellent way of making more money with Uber. Turn your car into a vending machine and earn up to $300 per month.
How does it work?
You display a snack box filled with breath mints, snacks, candies and more. When a passenger wants something, they simply go to cargo.menu and enter select the item they want. They can then check out with the driver and enjoy their treats. The driver gets a small payment from Cargo for each purchased product.
Aside from earning a few bucks, having a little vending machine in your car is an attractive tool for your riders to give you a 5-star rating.
Turn Your Car into a Billboard
Wrapify offers Uber drivers an opportunity to increase their take-home pay through their ad-sponsored service. Cover your car with ads and get paid in return.
They have three levels of wrapping that you can choose from – Lite, Partial and Full. You can make $196 – $280 per month if you opt for Lite and Partial service. If you go for Full, you can take home between $264 – $452 per month.
Join The Referral Program
Driver referral is one of the simplest ways of making more money with Uber. Refer a new driver and earn between $25 – $500 for every referral.
Use your creativity to maximize your referral bonus. Create a business card with your referral code and hand them out to anyone you think would be a good driver. This will increase your chances of getting more referrals.
Ask for Ratings
Before the end of your trip, ask your passengers to leave an honest rating of your service. A lot of people prefer this approach because this doesn’t sound like you’re asking them for any special favors. Getting a high rating will also increase your chances of getting booked.
In addition, asking your passengers for a rating is a subtle way of asking for a tip. The prompt for tip won’t be displayed to Uber passengers until they leave a rating for their driver. By asking for ratings, you also increase your tip potential.
Of course, excellent customer service plays a huge role in customer satisfaction. Make sure that you are courteous and professional at all times. You can also exert more efforts such as offering a mobile phone stereo hookup or providing helpful tips or information about the area.
Conclusion
With the high demand of ride-sharing service, there is no doubt that being an Uber driver is an excellent way to build your side hustle and make money.
Just like with any business endeavors though, you reap what you put into it. Make sure that you spend a lot of time and effort as well as creative strategies to make more money with Uber.
Do you want to learn more tips on how to become a great Uber driver? How to be the best Uber driver by Robert Kilpatrick will give you the tips and tricks that you need to know.
