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How Much Does an Uber Driver Make in New York City?

How Much Does an Uber Driver Make in New York City?

How Much Does an Uber Driver Make in New York City?

  • New York Uber drivers make an average of $25.91 per ride.
  • They average two rides per hour.
  • They work an average 30 hours per week.
  • Gross income for NYC drivers is $80,839 per year (pre-tax).
  • Net income is $45, 545 per year (pre-tax).
  • Net hourly income is $29 per hour (pre-tax).

According to labor group IDWU

How Much Does an Uber Driver Make in NYC?

It seems that many people in New York are seeking their own small business, along with the independence and better income that may give.

We know this because we see just how many have signed up to become licensed Uber drivers. Driving your own taxi as an independent contractor on the Uber platform is seen as a fast way to better work-satisfaction by an awful lot of folks. In fact, the ride-hailing app has been so successful in attracting new drivers, that in 2018, stating a need to cut vehicle congestion, the city of New York placed a moratorium on the issuance of new for-hire vehicle (FHV) licenses in a bid to quell the numbers.

Currently, the only new FHV licenses being issued are for drivers offering wheelchair-access vehicles to riders. However, for those who managed to get in before the cap, how much do they make by driving the streets of the Big Apple?

Firstly, it is important to know how the cost of a ride is calculated. In New York, Uber charges the rider the journey fare, (time and distance), plus a Base Fee and with a Minimum Fare. Uber X, the platform’s basic and most popular class of ride is currently priced at zero Base Fee, $1.62 per mile, $0.74 per minute, with a Cancellation Fee of $5 and a Minimum Fare of $8.

According to labor group IDWU and website Alvia, Uber takes a 20% cut of each fare in NYC.

IDWU states that New York Uber drivers generate an average fare per ride of $25.91 and they complete two rides per hour. This equates to a gross hourly rate of $51.82. Most drivers are reporting 30 hours behind the wheel, which gives a weekly gross income of $1,554 – or $80,839 per year. Not bad. However, this sum shrinks as Uber takes their share and the driver must pay for fuel, licensing costs, insurance and vehicle maintenance. Depending on the car being driven, fuel and running costs can vary wildly. Insurance is often around $5,000 per year but this will depend on driver history. (Also factor in the downtime when the driver cannot work while they wait for insurance renewals to come through – a very slow process that can be made significantly faster using the mobile FHV app from INSHUR).

Estimates put fuel costs at 10% and vehicle maintenance at another 5% of each fare. Deduct these, plus Uber’s 20% and the average hourly rate for drivers drops to $33.68 – before licensing and insurance. $33.68 over a 30 hours week gives a gross annual income of $52,545. Still not too shabby.

A final estimate, after factoring in $5,000 for insurance and another $2,000 for licensing and other document costs puts the gross annual income at $45,545, or $29 bucks per hour. Almost double the city’s minimum wage and well above the new driver minimum wage introduced by the NY Taxi and Limousine Commission (TLC) in January this year, which stands at $17.22 per hour.

As independent contractors, Uber drivers currently do not get holiday or sick pay, but this is in the process of review by TLC. Drivers can also make significant cost-of-doing-business deductions on their 1099 tax return each year.

So there you have it. Drive for Uber in NYC, put in a 30 hours week to your own schedule and you could make an average of $29 per hour.