Uber is a ridesharing company that has a profit sharing partnership with all its drivers. In this article, I am going to give you an overview of what Uber driver salaries in New York are if you drive for them for one year, six months or less.
How much do Uber drivers make in New York? The average Uber driver salary is $18.01 per hour. The average fare for Uber is $13.74, and the average wait time is 5 minutes. The median income for Uber drivers in New York is $12 hourly, which is lower than the national average of $15 hourly. In this article, we take a look at how much people really make as an Uber driver.
Uber Driver Salary In New York Overview
If you’re thinking about becoming an Uber driver, you might be curious about how much you can make. The answer is: it depends.
The first thing to consider is whether or not you plan on driving full time or part time. If you’re going to drive full time, which means working 40+ hours per week, then your income will be higher than if you were only driving part time (20-30 hours per week).
If you’re already working a job and just want to add some extra cash on the side, then it doesn’t matter if you drive full time or part time—you’ll still make money! That said, if you want to make even more money by working more hours each week than usual, then driving full time may be better for you.
Another thing that affects how much money drivers make is where they live. For example, drivers who live in areas with higher populations generally earn more than those who live in rural areas because there are more people who need rides.
But what about expenses? How much do Uber drivers really make after expenses? You may have heard that drivers typically only make around $25 per hour after taking into account their expenses
What are Some Common Expenses for Uber Drivers?
When you drive for your job, you drive more miles than you otherwise would. You’ll need to change the oil, other fluids, and tires more frequently.
If you don’t already own your car outright, you will need to continue making lease or car loan payments. According to Experian, the average monthly payment for a new car loan is $568. The average monthly payment for a used car loan is $397.
Uber drivers need to maintain comprehensive and collision coverage on their personal auto insurance. According to data from the National Association of Insurance Commissioners, collision coverage costs $363 per year on average, and comprehensive insurance costs $160 per year on average.
Uber has additional insurance coverage that protects your car should you get into an accident while on the clock. However, drivers must pay a $1,000 deductible before the coverage kicks in. Uber also has third-party liability insurance and uninsured/underinsured motorist bodily injury insurance for drivers. Learn more about Uber and insurance here.
Gas prices vary significantly, depending on where you live. Uber drivers must pay for the gas used to operate their Uber business. You can claim gas using the standard mileage deduction or by tracking actual gas expenses and deducting an exact figure for gas.
Some Uber drivers choose to offer riders in-car amenities like mints, phone chargers to use, water bottles, tissues, hand sanitizer, etc. Amenities aren’t required, but some drivers claim amenities help boost their ratings.
You can claim in-car amenities as a business expense outside of the standard mileage deduction.
Instant Pay Fee
Uber pays drivers weekly, but if you want your earnings faster than that, you will need to sign up for Uber Instant Pay. With Instant Pay, drivers can withdraw their earnings using a debit card for $0.50 per transaction. To avoid the fee, drivers can open an Uber debit account through GoBank.
Not every bank processes withdrawals immediately, so although it’s called Instant Pay, it could still take a day or two until the money appears in your account.
Currently, driving full-time for Uber doesn’t mean you get benefits like health insurance. Uber drivers need to secure their own health insurance if they don’t already have health insurance through a family member, partner, or employer.
This might change in the future. In the Spring of 2020, Uber announced plans to establish a health insurance policy for drivers. Uber would reportedly pay for health benefits on a sliding scale based on hours worked.
Uber doesn’t give drivers matching contributions to a retirement plan, life insurance, dental insurance, vision insurance, or other benefits. If you want these benefits, you will need to purchase them for yourself as an independent contractor.
Uber Driver Salary in New York, New York
How much does a Uber Driver make in New York, NY? The average Uber Driver salary in New York, NY is $45,102 as of September 26, 2022, but the range typically falls between $37,502 and $55,002. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target.
Uber pay structure
- A NYC Uber driver makes $25.91 per ride
- The driver will make two rides within the hour, bringing their hourly wage to $51.82
- They work 30 hours per week, which amounts to $1,554.6
- Over a 52-week year, the average NYC Uber driver makes $80,839 in gross income (before tax).
- Net annual income for New York Uber drivers is $45,545 (before tax)
The above pay structure is based on average earnings. To know exactly how much Uber drivers make in NYC, it’s important to first understand how the cost of an Uber ride is calculated.
In addition to a minimum fare, Uber charges New York riders a journey fare that’s based on time and distance. The rider may also be required to pay a base fee, depending on the type of ride they’ve requested for.
The most basic and popular ride in NYC is UberX, which doesn’t have a base fee. Riders simply pay a minimum fare of $8, journey fare of $0.74 per minute and $1.62 per mile, and a cancellation fee of $5.
Based on these rates, the average NYC Uber driver makes $25.91 per ride, according to the IDWU. Since most drivers manage two rides per hour, the hourly wage of a NYC Uber driver comes to $51.82. This totals to $1,554.6 per week for drivers who work 30 hours a week and a gross pay of $80,839 per year considering a 52-week year.
In New York, Uber takes 20% in commissions and fees. Vehicle expenses – particularly gas and maintenance costs – carve out around 10% and 5% of the earnings respectively. Combine these costs (along with Uber’s cut) and the gross annual income drops to $52,545.
That value, however, doesn’t account for licensing and insurance, which often fall in the $2,000 and $5,000 mark respectively. Subtracting these from the driver’s earnings brings the final annual salary to $45,545. This is $29 per hour, which is above and beyond the New York Taxi and Limousine Commission’s (TLC) minimum wage requirement of $17.22 per hour after deducting expenses.
As a matter of fact, the annual income of $45,545 means that Uber drivers in NYC make more than the national average salary for Uber drivers, which stands at $39,989. This boils down to a few things that favor NYC Uber drivers. The city’s population is high, ridesharing is legal, and ride-hailing is a norm. For these reasons, New York City boasts the highest salaries for Uber drivers in the U.S.
It’s worth mentioning that the type of car you use for Uber will determine maintenance, insurance and fuel costs – all of which influence your salary. Furthermore, your history as a driver will also play a part in determining your insurance premiums. With an efficient car and great track record on the road, your hourly and annual wage can rise to well over the NYC average.