Overall, Uber drivers tend to make slightly more money than Uber Eats drivers. Uber Eats drivers in select cities don’t get mileage rates and other compensation, so unless drivers are located in a high populated area like New York or San Francisco, Uber drivers will make more than Uber Eats drivers.
Since both are competitively close in income comparison, most drivers choose by these 2 factors:
- Uber is for: Drivers who are ok conversating with passengers and staying in the car all day.
- Uber Eats is for: Introverts who do not like to socialize, and are ok with picking up & dropping off food.
The bottom line is that it all depends on many factors such as the region you are in and the hours you work. That is why even if you work the same hours, your pay can be vastly different from someone working the same hours in another city.
If you want to earn more money, and you have a car, you can opt for Uber. You can also make Uber Eats deliveries in between to maximize your revenue.
|Estimated Pay||Uber Driver Rate||Uber Eats Driver Rate|
|Per Hour||$13.70 per hour before tips $14.73 after tips||$14.90 per hour before tips.|
|Per Day||$95 and upwards per day||$100 and Upwards per day|
|Per Week||$600 and upwards per week||Around $700 per week|
|Per Year||$30,000 and upwards||Around $35,000|
The drivers for both these services earn differently. If you are planning to opt for Uber or Uber Eats as a side hustle, you are in the right place.
Average Uber Income
Uber drivers tend to make more in highly populated States like New York, Chicago, San Francisco, and Los Angeles. An independent analysis by Ridester reveals that Uber drivers earn less than $15 per hour.
What do these drivers actually make then? Let’s understand each factor that affects their pay in detail:
1. Hourly Pay Vs. Salary
The first thing you must understand is how the market works. Full-time Uber drivers and Uber Eat drivers are at the mercy of many market forces in the rideshare sector.
Besides that, other factors will also affect how much Uber drivers earn. These include the service offered, region, number of hours, and more.
The variations in the volume of ride requests will also complicate the earnings. As an Uber or Uber Eats driver, you can’t expect to have consistent earnings because of all these factors.
Even the payment structure by Uber is not static. That is why it is challenging to point out how much you will earn.
Even the company can only offer you an estimate. In the end, you will have to experience it for yourself and see how much you can earn through it.
2. Service Offered
Uber: Ride-Hailing Services with different types of ride options
Uber Eats: Food delivery service from an extensive range of restaurants in your area.
One of the main factors that affect Uber pay is the service you offer. There are many services that fall under Uber, which include Uber X, Uber XL, Comfort, and more.
Just because you are offering a premium ride, it doesn’t mean that you will be earning more money. If there are a few riders, you will also get a few customers.
Because of this, many Uber drivers opt for Uber Eats to maximize their revenue. It allows them to earn through food delivery and gain more money.
|Region||Median Earnings Of Uber Drivers||Median Earnings Of Uber Eats Drivers|
Another factor that affects the earnings of Uber drivers is the region. According to various Uber estimates and sources, drivers that work forty hours each week, earn more than $1,300.
It doesn’t account for what the Uber driver has to pay. These include taxes, insurance, fees, maintenance, and much more of their vehicle.
Besides that, the earning difference is significant between each region. For example, drivers working the same hours will earn 30% more in San Francisco than in Kentucky.
If you live in a populated area, you have the ability to earn more. If the population volume is not that dense, then you will be earning less.
4. Hours You Work
As a general rule of thumb, the more hours you drive, the more you will earn. But, that is not the only thing that will determine how much you earn, as people pay tips too.
Besides that, it is crucial that you understand the pay structure of Uber so that you can optimize your time in the car. Doing this will help you make the most of your earning potential.
Being an Uber driver comes with a learning curve, and when you get through that, you will easily begin earning money in no time.
Uber Eats Income
|Region||Uber Eats Income Estimates||Uber Income Estimates|
Now that you understand how much Uber drivers make, it is time to understand the pay structure of Uber Eats drivers.
The key point to note here is that Uber Eats pays its food delivery drivers a certain amount for each delivery. They calculate the amount with the mileage traveled and the time spent delivering the food.
Remember that there is a base fare of payment, then the order drop off, time spent while delivering the food, and the distance the rider has traveled.
After that, a trip supplement payment can occur if the Uber driver is waiting at the restaurant or is stuck in traffic. Besides that, Uber Eats also offers promotions to increase the earnings of riders.
The tips that customers leave also go to the drivers. Uber Eats does not take any share of the tips from its customers.
The amount that Uber Eats pays its drivers depend on the city and other factors. For example, some report making minimum wage while others report making between $15 and $17 per night.
Some drivers can make more than this while others can make less. Some of the highest paying cities for Uber Eats drivers include:
- New York
- Los Angeles
- San Francisco
- And many others
If you are in a region with a dense population and lots of eateries, your earning potential will be more. You will not earn more money where the population volume is less.
The Pay Structure Of Uber Eats Drivers
Another important thing you must understand is the pay structure of Uber Eats Drivers. The base fare includes the cost of picking up the order, drop off, and time and distance.
Despite this, there are still some factors that will determine the pay rate for food delivery. Let’s understand each of these facts and fees in detail:
1. Fee For Picking Up The Order
The first fee involved in the pay structure is the cost of picking up the order. It is also possible that you can pick up multiple orders at the same time from the same location.
If this is the case, then a multiplier will be added to your fee. This depends on the number of orders you are picking up from the location.
2. Fee For Dropping Off The Order
The second cost involved is the delivery fee of the order. If you complete a food order with success, you will receive a flat rate delivery fee.
Keep in mind that this payout will happen every time you drop off the food at a certain location. That means even if you pick up many deliveries from a restaurant, you will receive a fee each time you go to a new customer.
The fee structure also includes mileage. This is the mileage between the pickup and drop-off location.
The most important thing to remember is that the Uber Eats app will not track the distance you travel. Instead, it will use the most efficient mileage and rate.
The app also doesn’t take into consideration the mileage you travel to get to your next pickup location. The mileage rate is also only available for LA and New York.
If you are from any other city, you will have to check whether Uber Eats will give you the mileage rate. You will receive this information when you sign up to become a driver, as they will break the entire payment structure for you.
4. The Minute Rate
The Uber Eats app is also known to track the time it will take you to complete the order. For example, it will give you the minute rate from the first pick-up location till your last drop-off location.
It is much similar to the mileage rate we just mentioned. The only difference is that it is estimated according to the time you have spent traveling, and not the actual time.
That is why if you are waiting at the restaurant or you are in traffic, then the minute rate will not serve you. Even this rate is available in select regions, which is why you must check after you sign up.
5. Fare Reduction
Finally, the pay structure also includes the fare reduction. That is because depending on the city and transportation you use, Uber Eats might pay you less fare.
For example, if you are an Uber Eats driver in New York driving a car, then you will receive more money per mile than someone who uses a scooter in California.
Don’t worry because the pay structure also includes a boost multiplier. This means that when drivers are not in high supply, you will receive more money for orders.
Uber Eats will highlight the boost multiplier before you accept the order. After you accept and you are done with the delivery, the fare will be multiplied by the boost multiplier.
If you want to boost your earnings at Uber Eats, you can opt to deliver when drivers are in short supply. You will get money and it will maximize your revenue without any hassle.
6. Customer Tips
Many people have this misconception that Uber Eats takes a portion of the tips that the drivers get. That is not the case as Uber Eats has cleared that drivers receive 100% of the tips they receive from a customer.
Of course, tips are not expected and not everyone pays tips. Besides that, taxes are levied even on tips.
You can deliver promptly and apply other tips to maximize your earnings with Uber Eats. Once you do, you will start earning in no time.
Uber Payments (Weekly or Instant Pay)
Uber drivers get their payments once a week through an ACH bank transfer. A week includes Monday from 4:00 am till the next Monday at 3:59 am.
All the rides that you have made during this time will be counted and you will be paid accordingly. Uber will also send you a weekly pay statement reflecting your earnings.
If you want to check your earnings, you can also go to the Uber application and click on the Earnings icon. This will show you all your past and current earnings.
If you don’t want to be paid through ACH bank transfer, you can opt for Uber Debit Card or Instant Pay. When drivers hit a certain payout limit, they can ask to be paid instantly.
You will have your earnings in no time and you can cash out at least five times in one day. Another option you have is the Uber debit card.
You will not be charged a transaction fee for cashing out from their debit card. If you use your own debit card, there will be a transaction fee.
Uber Eats Payments (Weekly or Instant Pay)
Uber Eats also has two ways in which food delivery drivers can get paid. This includes Instant Pay or a weekly payment directly to your bank account.
Besides that, when you choose a direct deposit, the payment will begin processing on Wednesday. The money might come into your account the next day.
Sometimes, the banks might go through a delay and you might receive your payment on Friday. This is only true for the direct deposit into your bank account.
More Uber Articles:
- Uber Income After Expenses
- Uber Vs. Uber Eats
- Uber’s Profit Per Ride
- Uber Black Vs. Lyft Lux
- Will Uber Wait For You At A Store?
- To Sit in Front or Back of Uber
- Using Uber as a Minor (Under 18)
Benjamin is a certified financial advisor, with over 10 years of experience in the industry. He is knowledgeable about various business and financial topics, such as retirement planning and investment management. Ben has been recognized for his work in the financial planning industry. He has also been featured in various publications.