George, a full-time Uber driver in Cleveland, was once very happy with his rideshare job. But things have changed.
“I used to sing the praises of Uber and recommend Uber to people looking for a business opportunity to earn a decent income – but that’s no longer the case,” George said, whose identity is known to BI but he asked to use a pseudonym due to his fear of professional repercussions.
George said he had tried various earning strategies over the past few years, but none of them had proven to be both effective and sustainable.
Last year, George earned more than $109,000 in gross income from ride-sharing, according to documents viewed by BI. But after factoring in Uber commissions, car maintenance, gas and other driving expenses, he earned about $17,000, or about 16 percent of his gross income. In 2021, he earned around 19% of his gross income.
He said he typically drives between 45 and 55 hours a week and estimates that after expenses such as gas and maintenance, he earns about $17 an hour in 2023, excluding depreciation and expenses. insurance.
George is one of several Uber and Lyft drivers who told Business Insider that their jobs are less profitable than they were a few years ago. Many have accused ride-hailing giants of accepting a deeper reduction in passenger fares, while some have pointed to growing competition from drivers and high vehicle expenses. These frustrations have led some drivers to protest and demand a higher guaranteed wage.
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 ride-hailing drivers actively monitor their income and expenses to make sure driving is worth it. George shared the top ride-sharing strategies he’s tried, what worked and what didn’t, and another reason — besides his declining income — why he’s considering giving up carpooling.
Some strategies were effective, but none made a difference
George said he tried “cherry-picking” – only accepting trips paying a minimum of $1 per mile. But he said he often finds himself accepting rides below that threshold that take him to busier areas.
Drivers told Business Insider that it’s easier to be picky about routes when you drive part-time and are less dependent on transportation income. A low acceptance rate can also make it difficult for drivers to maintain their driving status, which can provide benefits such as savings at some gas stations.
George said he tries to drive as much as possible on weekends, when demand is “incredibly high.” But he said it carries a risk.
“I do this with the advanced knowledge that I could deal with someone vomiting in the vehicle, thereby reducing the time I would have to drive due to cleaning requirements, and then return to work once it has been cleaned to my satisfaction,” he said. said.
While that concern is often on his mind, he said he’s only had a few occasions where he’s had to clean up after a sick passenger.
George said driving at night – when travel demand is higher and the supply of drivers is lower in his area – has been quite effective. He also tried to work more during the day, knowing that travel demand can be quite high. But he said that strategy hasn’t increased his revenue significantly, in part because he can only run a limited number of rides.
“I would find myself in extremely heavy traffic and sit with or without my passenger in the car, but I would still lose time,” he said. “I prefer lower traffic levels to reduce stress and anxiety caused by other people’s bad driving and to prevent myself from being involved in an accident.”
George added that working on high-demand days, such as the Wednesday before Thanksgiving and St. Patrick’s Day, can be profitable. But there are only so many of these days during the year, and when you factor in traffic, its total revenue isn’t always much higher than a typical day.
“No matter what my strategy is in Cleveland, my winnings stay about the same,” he said.
Security issues have been frustrating
Although his financial struggles are the main reason George is considering giving up ride sharing, he said he also has safety concerns.
“We drivers don’t know anything about our passengers, but the passengers know us in the evening,” he said. When booking a journey, passengers can see drivers’ names, photos, license plates, vehicle models, the number of trips they have taken and how long they have driven for the platform.
“What we see is the name given and the score, nothing else,” he added, stressing that the passenger’s name is not always accurate.
“I recently asked a passenger to use ‘Yu-Gi-Oh’ as a name,” he said, referring to the popular card game.
In April, Uber rolled out a new rider verification program in several U.S. cities, not including Cleveland, which will put a blue checkmark on the accounts of riders whose identities have been verified. Uber said the majority of riders will do this automatically, although some may need to upload an ID to do so.
This program will allow drivers to refuse a ride when a passenger’s identity has not been verified.
“Strengthening passenger screening is one of the top requests from drivers across the country,” Roger Kaiser, Uber’s chief safety officer, said in a statement regarding the update. “Uber’s new verification process and verified rider badge that will be visible to drivers are important steps in helping to give drivers greater peace of mind while on the road.”
Uber has announced plans to expand this program to more cities in the coming months.
Regardless of the update, if George’s income doesn’t improve, he said he’ll likely try to look for other options. However, while he makes this transition, he said he has no choice but to continue driving.
“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.”
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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