A Cleveland Uber driver earned more than $109,000 in gross income last year, but only took home $17,000.
He said driving Uber had become less profitable, but he wasn’t sure he could find a better job.
The driver said his lack of a college degree and physical limitations left him with few options.
George, a full-time Uber driver in Cleveland, wants to quit his rideshare business. But for now, he feels like he has no choice but to keep driving.
The 40-year-old, who has driven for Uber since 2017, was once quite happy with his ride-sharing income, he told Business Insider via email. But his feelings have changed considerably in recent years.
“I used to sing the praises of Uber and recommend Uber to people looking for a business opportunity to earn a decent income – but not anymore,” George said. His identity is known to BI, but he asked to use a pseudonym for fear of professional repercussions.
Last year, George earned more than $109,000 in gross income as an Uber driver, according to documents viewed by BI. But after factoring in Uber commissions, car maintenance, gas and various driving expenses, he earned about $17,000, or about 16 percent of his gross income. In 2021, he earned around 19% of his gross earnings.
George said he drives between 45 and 55 hours in a typical week and estimates that after expenses such as gas and maintenance, he earns about $17 an hour in 2023, excluding depreciation. and insurance costs.
“Now I would have to drive about 10 to 12 hours a day, six days a week, if I wanted to earn a large sum like I could do years ago, working maybe 30 to 40 hours a week,” George said. . He remembers a particularly profitable week in 2022, when he estimated he made about $40 an hour after expenses.
George is one of several Uber and Lyft drivers who told BI that their gigs are less profitable than before. They accused transit giants of accepting a deep reduction in passenger fares and said increased competition among drivers and high vehicle expenses hadn’t helped matters. Those frustrations have led to driver protests and calls for a higher guaranteed wage, with the confrontation in Minneapolis one of the most recent escalations of tensions.
The average Uber driver’s income before expenses fell from $29 an hour in 2022 to $25 in 2023, according to a study by Gridwise, a data analytics company and app that helps drivers track their earnings. A study commissioned by the state of Minnesota and released in March found that in 2022, drivers in the Twin Cities metro area earned less than $14 an hour after expenses.
In February, an Uber representative told BI that “the vast majority of drivers are satisfied” and that “last quarter, drivers in the United States earned approximately $33 per hour used” before expenses.
Many rideshare drivers, like George, actively track their income and expenses to make sure driving is worth it. But deciphering its true profitability – or lack thereof – is often not simple.
And even when a full-time driver has a good idea of their benefits, they may not like what they see, and quitting driving for another job isn’t always that easy either.
“I keep hitting a brick wall”
Even though George wants to trade Uber driving for a more traditional job, he said he can’t do it for three reasons.
First, between his rent and other bills, he said, he can’t afford to take a job that will pay him less than carpooling. And he’s not sure I’ll be able to find one that checks that box.
“I could only make, say, up to $20 an hour for a brick and mortar job, which would pretty much put me in the same boat, so that’s not a solution,” did he declare. “I don’t have a diploma, so my pool of vocations is limited.”
In recent years, some companies have become more open to hiring candidates without a college degree. There has also been job growth in sectors that historically did not require degrees, such as manufacturing and food service.
But finding a job without a degree – and a well-paying one – can still be a challenge for some people. Among Americans aged 25 and older, the unemployment rate for those with only a high school diploma is 3.9%, compared to 2.2% for those whose highest level of education is a bachelor’s degree. , according to the Bureau of Labor Statistics.
Second, George said, he has a bad hip that will probably eventually require a hip replacement. Since a 10-minute shower can cause him “excruciating pain,” he said any job that requires standing for long periods won’t work.
Physical limitations can make it much more difficult for people to land suitable employment. In 2023, about 44% of men and women ages 25 to 54 with disabilities were employed, compared to about 83% of people without disabilities, according to the Bureau of Labor Statistics. In recent years, the rise of remote work has helped more people with disabilities find jobs.
Third, George said, his roommate has health issues that prevent him from driving. George said carpooling gives him the flexibility to transport his roommate to doctor’s appointments and to and from work.
“There are a number of frustrations because I just want to improve my life,” George said. “But because of the current situation, I keep hitting a brick wall.”
George said he saw a way out: becoming a truck driver, a job in high demand in some parts of the United States. The job could pay more than rideshare — the median driver earns about $54,000 a year, according to the BLS — and would be manageable for his hip. If George pursues this career path, he said, his roommate is willing to find alternative transportation.
But this solution could come with its own challenges. George said the training cost several thousand dollars and he would have to complete several weeks of unpaid training to obtain the commercial driver’s license needed for the position. He’s not sure he can afford to give up his income for that long.
“I would have to save money so I could help my roommate pay for some things while I was away from home and not earning income,” he said. “Like all things in life, it’s complicated and not as simple as making a change.”
Are you a gig worker willing to share your story about pay, hours and tips? Are you having trouble finding a better job? If so, contact this reporter at jzinkula@businessinsider.com.
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