I don’t know what’s going on around the rest of the country, but here in New York City, it looks like Uber’s rate cuts, earlier this year, have been a complete flop.
I first noticed this three to four months ago when I realized 70%-80% of Manhattan was on fire with beautiful orange and red surge colors filling the map, several times a day, every day of the week. When the whole map lights up in red for several hours each day Uber tells us that means there are too many passengers for the available number of drivers. But what it tells me is that there has been a long-term mass exodus of drivers as a result of this year’s rate cuts. Prior to this last cut, things appeared to be in equilibrium, as the surges were infrequent and short-lived. But gradually over the few months following the last cuts, I noticed surges became more frequent, they lasted longer and they covered a larger area. Continue reading Uber Raises Driver Pay in NYC – Rate Cut Not Working
A reader named “John”, who says he’s an accountant, posted this excellent analysis of driver income as a comment on another article. I thought it was so good that I wanted to post it as a separate article so everyone would see it. Here’s what he had to say:
I have been driver for LYFT and UBER for 1 year and working full time for 9 months. I have completed over 2,200 rides. I have an accounting background and I lost my professional job. Out of desperation, I became a driver for UBER/LYFT. I keep precise records of all income and expense. The bottom line statistics are not at all promising to be a driver. I took precise mileage and earnings figures. For 9 months, I drove 41,291 miles, gross revenues before expenses and taxes were 0.61 cents/mile (including cash/non-cash tips). In my market, average gross revenue for UBER and LYFT is 0.80 cents/mile BEFORE 20% commission paid to UBER/LYFT. Of significance, my gross earnings per mile was 25% higher in 2015 ($1.00/mile), which means that average gross earnings per mile will be LESS in future periods. Thus, my findings at the end of this post are UNDERSTATED. Earnings include prime time and surge pricing. I worked more than full time for 6 months during all optimal times of the day (12+ hours/day, 5+ days/week). Continue reading Read This If You Really Want to Know How Much You’re Making as an Uber/Lyft Driver
Finally, we have some believable driver-generated data on how much Uber and Lyft drivers are making around the country. And the picture is grim – very grim. After taking into account car and driving expenses, almost no one is making even minimum wage!
In the vast majority of the country, no one makes more than $11 an hour. For every city other than New York, earnings range from about $8.80 – $11 an hour. This is according to SherpaShare, a financial analytics site that allows drivers who work for on-demand companies to track their earnings. Continue reading How Much do Uber Drivers Really Make?
Uber just dropped its Black and SUV services in Connecticut, replacing them with a new service called “Premium”. The new service appears to require the same Black cars and SUVs, but prices have dropped 27%-30%.
For those of you who have invested in a luxury black car or SUV, once again Uber has with no warning, decided to screw you.
This is just a heads up that this change might be coming to a city near you. So, if you’re thinking about investing big bucks into a premium vehicle, you might want to check twice (or three times)! Continue reading Uber Dumps Uber Black and SUV in Connecticut
Apparently Uber’s last round of price cuts has resulted in much higher prices.
Have you noticed that since the last price cuts your area has been surging more frequently and for longer durations? I don’t know if it’s just New York or if it’s everywhere. But I see the same thing in northern New Jersey as well. Continue reading Lower Rates Mean Higher Prices
With all the talk of Uber gearing up to use self-driving cars, apparently they have already started using self-responding support!
I just sent in a support request for the first time in a long time and what I got back looked like a computer-generated response. So, I sent in the exact same request again and got nearly the same response each and every time! Wait until you see their responses. Continue reading Is Uber Using ‘Self-Responding’ Support?
Uber is finally about to get in on the act – the act of paying drivers daily. But it looks like they’re at least 6 months away before rolling out their new program nationwide.
In the meantime, there is another service offering to pay drivers every day. It’s called DailyPay. I recently wrote about Clearbanc, but I’ve talked to a lot of drivers since then and a lot of them are using Daily Pay and seem to like it, so I thought I’d write about it here.
DailyPay puts cash in your bank account each day for the money you’ve earned from driving that day. They charge a little less than Clearbanc, they charge $0.99 a day up to $150 in earnings. They charge $1.49 for any day you earn more than $150.
They deposit the money directly into your bank account. When you sign up, they will ask for your Uber account login information. This is so they can connect to your account to track how much you’re earning. You’ll also be asked to login to your Uber account to update your payment information to direct Uber to send your weekly earnings directly to DailyPay. Obviously DailyPay has to get paid by Uber after they’ve advanced the money to you! So don’t worry about that part of the process. I know it can feel a little risky to do this, but don’t worry because DailyPay will be sending your earnings directly to your bank every day you drive.
If you sign up using This Link (or any of the links above) you’ll get the first two weeks of service free! That could be a $14-$21 savings depending on how often you work and how much you make!
I’ve been getting paid daily for several months now and all I can tell you is – it sure beats getting paid weekly!
Now that nearly a couple of months has passed since the nationwide rate slashing by Uber, I’m curious how those of you who drove before the rate cuts feel that they have affected you. Are you making more, less or about the same as before? Please leave a comment at the bottom of this article and tell us what city you drive in and how the rate cuts have affected you.
I have one anecdotal story to tell you… a friend of mine who drives in New York City and who has been a huge earner, making upwards of $2,000 a week (because he drives about 18 hours a day – literally, six or seven days a week), just called to tell me the depressing news.
He told me that one morning shortly after the rate cuts he worked from 8:00 a.m. until noon and made a grand total of $40! Which of course comes to $10 an hour.
He said he just sat and sat and sat and got no calls. I was so shocked by this (I say sarcastically) because I had just gotten an email from Uber telling us the great news that since they reduced prices in New York they are seeing positive results for drivers. Continue reading How Much are Uber Drivers Making After the Price Cuts?
Driving in New York City I used to typically earn from $20-$24 an hour during the day. Daytime is very difficult in Manhattan because the trips are short and the traffic is thick. Most of your money is earned based on how far and how fast you can go. The per minute rate in New York is now enough to earn you $14.41 per hour (down from $16 an hour previously), if you had a passenger in the car and sat completely still for an entire hour. So the less you move, the less you earn. And in New York, you don’t move very much. Sometimes you sit in traffic dead stopped for many minutes at a time, so all you’re earning is the per-minute rate – which means you’re only earning at the rate of $14.41 per hour.
The per mile rate in New York will now earn you $72.03 per hour if you drove at 60 mph for an entire hour. That’s down from $88.50 per hour – a 19% decrease. The combined per-minute/per-mile rate would now earn you $86 per hour if you drove at 60 mph for an entire hour. That’s down from $104.50, or a 15.3% decrease.
But if you also factor in Uber’s new 25% commission, it breaks down like this: Continue reading What I Earned in a Typical Hour After Uber’s Rate Cuts
So, what you’ve heard in the news is that Uber cut its rates in New York City (as it did in the rest of the country) by 15%. The New York cut was announced just a week or two after all the other cuts had gone into effect nationwide.
What you may not have heard though is that they also increased the commission New York uberX drivers will have to pay to Uber for each dollar they earn by 5%. So in a one-two punch, New York drivers have had their pay cut by a whopping 20%.
Throughout, Uber has claimed that the purpose of these rate cuts was to cut the time drivers spend waiting in between trips. It’s true that less waiting time should mean higher earnings. But it’s hard to achieve higher earnings when your pay rate is cut by 20% overnight. Continue reading Uber’s Pay Cut – A One-Two Punch for New York Drivers