To make it clear, i have only been driver for Uber for a few months. I have a home business that i run during the day and only do Uber after hours. This means that i haven't encountered all situations that are possible but have gained a some useful experience.
First things first: APPLY FOR YOUR DRIVER AUTHORIZATION AS SOON AS POSSIBLE!
It is the slowest part to becoming an Uber driver.
The driver authorization involves a medical, driving history check and a police check. You do the medical with either your local doctor or there is one that Uber promotes with discounted rates.
Once the forms are completed you take them to the dept transport for processing. The department of transport will do the driving history check and submit your info for a police check. This is the slow part. The police check can take anywhere from 1-6 weeks. Mine took about 5 weeks.
Having driving or criminal offences won't automatically disqualify you but it depends on the offence.
A recent drink driving offence might, but a 5 year old drink driving offence won't.
Multiple recent speeding fines might, but a single driving unregistered fine won't. (i know because i came back from an overseas holiday a year ago and didn't realize my registration had expired while i was away until i was pulled over and fined.)
The driver authorization costs approximately $40 at the time of writing this and the medical is around the $120 mark. (not covered by medicare)
Other considerations when applying:
- You need a car with at least 4 doors, less than 9 years old. The more fuel efficient, the more money you make.
- You need to have held an open Australian licence for at least one year.
- You need proof that the car is registered
- You need proof of comprehensive vehicle insurance (certificate of currency) - this is easily obtained
How much do i make: Is it worth it?
Now for the interesting part.
How much do i make?
As i explained in the opening paragraph, i only drive for Uber part time.
I work approximately 15-25 hours a week for a gross income of $800 -1200 per week.
My income calculation are detailed below.
I am excluding the first few days working for Uber in these calculations for reasons i will explain further down in this article.
I choose my hours based on what is suitable for me. Mostly i am driving after 6pm 4-5 nights a week. I also try to work some of the guaranteed hours seen here:
**These may change so check uber website
Guaranteed hours are incentives from Uber to get you working during the busy times.
Basically if you don't earn the minimum in fares for those hours, Uber will pay you the difference.
Note that this is gross fares of which Uber takes a 20% commission.
Here is an average week for me so far.
Tuesday and Thursday - 4 hours each - 8 hours total: Gross $270
Friday and Saturday during $30 incentive period - 11 hours $510
Saturday night/ Sunday morning during $40 incentive period - 3 hours $150
Total hours: 22
Gross income: $930
**numbers have been rounded down for easier calculations. eg 216 becomes 210
Now, gross income is not really important.
To make sure you are making a decent wage, you need to take expenses into account.
So i need to include the following expenses:
- GST
- Ubers commission
- Fuel
- Registration
- Insurance
- Servicing
- Cleaning
Gross income = $930
Ubers cut -$186 (ouch)
GST -$84.55 (gst is calculated off the gross including ubers cut)
Fuel -$60 (1.5 tanks for my car - almost 1000km driven )
Registration - $12.7 ($664 divided by 52 weeks) **note i would be paying this anyway
Insurance -$11.30 ($49 per month x 12 (months) divided by 52 )**note i would be paying this anyway
Servicing -$14 ($140 per service every 10,000km. 1,000km per week = 10 weeks per service)
Cleaning -$16.5 (Cheap detail every 4 weeks for $66. vacuum each day at home. Garaged)
Total expenses -$385.05
Net income $544.95 divided by 22 hours = $24.77 per hour.
Now this sounds reasonable, but it won't make you rich.
Here is the good news. You can claim huge tax deductions. Every expense except for Ubers cut (and gst of course) has 10% gst that you can claim back. Your car is subject to depreciation and expenses can be deducted at the highest rate if you keep a log book, odometer readings and expense receipts! So you will find that you are paying much less tax than you expected. My calculations show i can claim approximately $19,000 in deductions. **note that this is without tax advice using the tax departments website calculator
For my situation, the deductions i can claim make driving for uber worthwhile even if i was making $15 per hour.
Your situation may be different. Make sure you work out your full expenses otherwise you will be driving blind. (haha)
I also very much doubt that my method of driving is the most lucrative. (according to Uber over 90% of Brisbane drivers that did over 40 hours last week had a gross income over $2000)
My method is relatively stress free and easy to do when you have another job or business to run though.
I also very much doubt that my method of driving is the most lucrative. (according to Uber over 90% of Brisbane drivers that did over 40 hours last week had a gross income over $2000)
My method is relatively stress free and easy to do when you have another job or business to run though.
If you have read enough, use this link to Sign up to drive for Uber and get $100
or keep reading for more information.
If you don't want to register for GST, there is an alternative.
https://www.partnerpeople.com.au/
This is not a paid referral link and i have not used the service, but have also only heard good things about it.
If you don't want to register for GST, there is an alternative.
https://www.partnerpeople.com.au/
This is not a paid referral link and i have not used the service, but have also only heard good things about it.
Making it work: What i learned in my first 2 days of driving.
My first 2 days were hectic. I worked very hard following the advice from Uber and various forums. I chased surge zones (surge zones are areas where demand outstrips drivers so Uber increase the fare to attract drivers to the area - explained in detail further down). Drove to areas i expected to be busier. Picked up heaps of fares.
But once i worked out my expenses, my hourly wage came in at just under $13 per hour.
Here is why:
Surge fares - when prices surge, only the people that are desperate or going a short distance will ride. Others will just wait for the surge to finish. This happens when enough drivers enter the area to meet the demand. What this means is that your fare is likely to be the minimum distance. Normally $6, it will be 2-3 times more. This is good money for only going a few kms, but usually surge zones involve traffic, events, road closures, difficulty pulling over etc. Probably ok for a more aggressive driver than me.
Chasing the surge - Because plenty of other drivers are also chasing, you often find that within 20-30 seconds of entering a surge zone, the surge will end. It means you wasted petrol getting there when you could have gotten a fare paying the same amount where you were. The flipside here is that if you do your homework so you know when and where there will be a surge, then position yourself accordingly, you may make some large fares. (you need to log out and use the passenger app to see when the surge starts otherwise you will just get the first fare before the surge begins) I haven't tried this yet, but plan to try it for a few events that i believe other drivers may not have considered.
Pointless driving - driving is more interesting than sitting in your parked car, but it costs you fuel and doesn't increase your chance of getting a fare. In fact it probably decreases it. The fare goes to the driver who is located nearest to the passenger. If you are driving along main roads, you are probably one of a number of other drivers at a similar distance. If you are parked in a suburban street instead, you are more likely to be the closest driver and get the fare.
How i made it work:
Once i realized that i wasn't going about uber driving in an intelligent manner, i decided to come up with some strategies for working less and earning more.
Uber pays a per kilometer rate and a per minute rate.
Uber pays 3x higher for kilometers traveled than it does for minutes driving.
$1.30 per kilometer + .40 per minute.
This means that it is better if you can accept longer trips along major highways.
This is quite easy if you travel away from the city or night club areas on the weekends and wait for people that are going out for a drink.
Examples:
1. You pick up a customer that is 15km from the CBD wanting to go to CBD. Your route is all on suburban streets with 60km/h zones, so with light traffic it will take you 20 minutes.
Fare: (15km x $1.30) + (20min x $0.40) = $19.50 + $8.00 = $27.50 in fares
Return to start and repeat for 5 hours with 10 min wait/drive for fare = $165 or $33 per hour.
2. You pick up a customer that is 20km from the CBD wanting to go to the CBD. Your route is mostly highway 100km/h zones and takes 15 minutes
Fare: (20km x $1.30) + (15min x $0.40) = $26.00 + $6.00 = $32.00 in fares
Return to start and repeat for 5 hour with 10 min wait/drive for fare = $240 or $48 per hour!!
Don't forget that these figures are before expenses and there is always the chance you will wait longer for a fare, though i haven't had this happen unless i sit on main roads.
Pros and Cons of Uber Driving: With advice for limiting the cons and maximizing the pros.
PRO - The rating system.
I'm not particularly extroverted or confident and this was probably my biggest concern when i started driving for Uber. My fears were completely unfounded. The rating system allows you to rate a rider if they do something unacceptable. You can rate between 1-5 stars and your rider does the same for you. That means you need to provide good service and your rider needs to behave. When a rider requests an Uber, you can see their star rating and choose not to accept a low rating if it bothers you.
PRO - Work anytime you want:
My home business is slow at this time of the year, but i do get some busy days. Usually i won't know in advance, so i might need to work anywhere from 3-10 hours with only a few hours notice.
This makes it difficult to find a regular part time job, but makes uber driving perfect.
I can log in whenever i like. In fact, because my office is in my garage, i will often start the uber app while working on non-essential business matters. If i get a rider request i am in my car in less than 10 seconds. This is not something i would recommend unless you can get going super quick. The app will give the rider an estimated time of arrival based on your location. If you are late you will get a low rating.
PRO - Earn good money:
I think I've covered this...
PRO - Improve communication skills:
Running a home business, i don't often communicate outside a small circle of friends. Social skills are developed with practice (which is why you don't hear of any eloquent hermits). Driving for Uber means i am talking with riders of all ages and improving my communication skills. This is already helping me gain confidence that i have lost over the years from running a home business with limited human interaction and feedback.
PRO - Uber's got your back:
If someone throws up in your car, scratches 'ryda waz ere' in the back of your leather or drops their drink, you just take a picture and show Uber the repair receipt. They cover it and charge the rider.
Make sure you check your car after each ride. This means you need to pull up properly instead of parking half on the road to let your riders out. This will save you from getting fines as well.
PRO - You get paid every week on time without fail:
Uber pays you every week. For Brisbane they calculate your earning from monday-sunday and pay you direct to your bank account the following wednesday.
PRO and CON - You can't see the riders destination until you pick them up:
Let me explain why this is both pro and con...
You may need to travel 5 minutes to your rider only to find out he is going the minimum distance. This will seem like a waste of time. A taxi might refuse, but you can't because you will be rated badly. Every time this has happened, i have received a lucrative ride immediately after. It seems like a karma reward, but more likely it is because you are somewhere with less Taxis!
Con - Driving is draining if you are stressed:
If you are in heavy traffic and don't know your destination well, it can be very stressful.
You may think you know the city well, but you will quickly discover that your knowledge needs improvement. Most of the time the rider will enter their destination when they book the Uber and the Uber GPS will give you directions. These directions will update if you miss a turn. This is lucky because sometime the app is slow or will not take account of road rules (no right turn) etc. Follow the apps directions using your own discretion to keep out of trouble.
Con - You will eventually get a bad rider:
I've only had 2 since i started. Neither truly bad. One wanted to drink alcohol in the back and i told him to finish it before he got in ( you both get a fine if you allow this). He wasn't that happy about it and also left the empty can in the back of the car where i couldn't see it but all the following riders could. (hello low star ratings).
The 2nd wanted to give directions instead of putting it in the app. Problem was he was too drunk to remember that he was supposed to be directing me and would get annoyed when i missed turns he hadn't mentioned.
Con - You car is going to lose value quickly:
While the manufacturing year of a car is important, the number of kilometres it has travelled is much more important for the resale value. If you work 40 hours a week you will put close to 100,000km on the car in a year. Make sure you service the car on time to avoid premature wear and tear. The loss in value is mitigated by the tax deduction benefits/depreciation.
Con - If your car is being repaired or serviced you have no income:
If something major goes wrong, depending on your car model, you can be off the road for weeks.
Try to keep at least a few weeks income saved for situations like this. It's not a good idea to live paycheck to paycheck without emergency funds.
Even a regular service can take you off the road for a day, so make sure you book your service for hours you don't usually drive.
Con - You will feel like you are making much more money than you actually are:
The figures you see in the Uber app can give you a false sense of making much more than you actually are, so it is important to keep accurate expense records both for tax and for calculating your net profit.
Misinformation, lies and negativity
If you go looking for information on the different forums dedicated to uber driving you will quickly discover a wealth of information mixed with misinformation, lies and negativity.
The majority of misinformation and lies are probably coming from those in the taxi industry. This is also obvious because of the venom frequently evident in the posts.
Uber is a disruptive technology and it is having a huge effect on a highly profitable and previously untouchable industry. The same sort of thing happened with video recorders, mp3s streaming movie services and quite a few others. Understandably, the people that stand to lose money or income are resistant. A few actively spread misinformation and lies with the intention of reducing driver applications.
What is true and what is not:
- You can be fined for driving for Uber in qld. This one is true, but Uber cover all fines. They won't cover you for illegal parking or dropping off riders in a taxi zone though, so don't do it.
- People have had their cars impounded. Completely untrue. This is not even a possibility. Current laws don't allow it.
- Uber won't cover you in an accident. It seems this is not true. Uber state they will cover you, but you need to claim through your own insurer first. if the claim is rejected then Uber has insurance to cover it.
- Uber won't cover you if you have an accident while logged in but there is no rider in the vehicle. This one appears to be untrue too. After a case in the U.S. Uber announced that they now cover you as long as you are logged into the app. The real message here is don't drive around looking for a fare. If you are parked, the app can't distract you.
- You will only make $10 an hour. As detailed earlier, this is possible if you drive around mindlessly or chase the surges, but it doesn't have to be that way. At least not in Brisbane.
- Uber don't care about you. This is hard to know, but what is definite is that Uber care about keeping their drivers secure and happy. Ubers business model requires both drivers and passengers. At this stage in Brisbane, it is important to get more drivers, which in turn increases rider demand when they realize they can catch an Uber anywhere in Brisbane in just a few minutes.
**Some of the points above are based only on information provided from Uber and also research into how they handled similar situations previously. I believe it to be true because Uber can't afford to lose driver confidence at a time when they expanding rapidly and are desperate for drivers.
My belief could be wrong and the situation could change, so make sure you do your own research regarding insurance issues and make up your own mind about potential risks.
My belief could be wrong and the situation could change, so make sure you do your own research regarding insurance issues and make up your own mind about potential risks.
A note on Taxis:
Taxi drivers themselves often work hard for very little money ($10 an hour, 12 hour shifts) because half of their earnings go to the plate owners, cabcharge fees and any number of other equipment.
They are not your enemy as an Uber driver. They are victims of change, though many of them are trying Uber too. Treat them with respect and don't drop riders in taxi zones etc. The extra fees they pay give them the right to use those areas but not you. Besides, you will probably get fined.
Almost finished: Why did i write this?
So to conclude this article, it is definitely possible to make a decent wage as an Uber driver.
You may want to read back over the figures i listed earlier and take a look at the guaranteed hours. There are 78 guaranteed hours so its easy enough to only work guaranteed hours if you wish.
Why did i write this?
I have 3 reasons, first being to help increase the number of drivers, which may seem self defeating, but more drivers mean more passengers which increases the number of riders.
Second, i like to write.
Third, if you sign up to drive for Uber in Brisbane using my link, you get a $100 bonus and so do i (once you complete 20 trips).
Uber driving is not for everyone, but if you are considering it, just sign up for the passenger app and ride an Uber. It will give you an idea of what to expect. You will find everything is friendlier, cleaner and nice than expected.
While i will get a bonus from you signing up, i have only presented honest and accurate information in this article. My intention is to increase the services popularity in Brisbane and there is no benefit in signing up drivers who decide they don't like it because i only get the bonus once you complete 20 trips.
Recommendations on your first few days:
You will be tempted to rush in as soon as you are approved. Consider the time of day.
I made the mistake of starting on a busy weekend with multiple sporting events running.
It made for a stressful learning experience.
I would recommend starting on a weeknight after 7pm when the roads are quiet in a suburban area.
Ubers gps navigation isn't great, but if you download the google maps app or Waze app, you can change ubers settings to open your preferred gps app when you accept a ride.
If the rider doesn't enter a destination, ask them before you start driving. If someone gives you the name of a business as the address, start typing it into the app. Usually it will be a club or pub and will appear after a few letters are typed.
Make sure the gps map is displayed and if you deviate from the displayed directions, tell the rider why you are doing it. Keep in mind that choosing a longer path will cost the rider more and they will rate you accordingly.
Pay attention to social cues from your rider. If they are busy looking at their phone, they might not want a conversation. If they do want to talk, try to encourage them to talk by asking questions. (no specific personal questions. What do you do for work is fine, but where do you work is not.) Keep it positive. Don't talk about yourself and especially don't talk about your problems. They may listen with a sympathetic ear, but you are going to dampen their mood.
Don't drive around while waiting for fares unless you are driving to a favorite starting point. It is better to park and wait. It also saves you from getting distracted.
If you are not sure about driving, consider signing up anyway, so you can attend an information session.
There is no cost and it might help you decide. The sign up bonus may change or be removed but if you sign up now it doesn't matter when you start driving, you still receive the current bonus.
So here is the link again: Sign up to drive for Uber and get $100
