Uber signaled a revolution in the ridesharing industry, and it nearly bankrupted many cities’ traditional taxi services with how affordable and convenient it is. However, there are still some questions that outsiders may have about Uber, including how its drivers get paid for their services.
Uber drivers get paid for each trip based on the amount of time the ride takes and the mileage that they have to drive. Drivers tend to receive about 75% of their fares, with 25% going to Uber, and they are typically paid through direct deposit every Wednesday or Thursday, though some can get paid instantly.
There are a lot of details to consider when it comes to how Uber drivers get paid and when they can expect to receive payment for their services. In this article, I’m going to explore Uber’s payment system in detail, and hopefully I’ll be able to help some prospective drivers decide whether or not Uber is right for them.
How Do Uber Drivers Get Paid?
While you would think that Uber drivers get paid the fare that you get charged when you hire them to take you from point A to point B, that is not the case. Uber takes between 20% and 25% of the fee since they were the ones who got that driver the fare in the first place. The difference depends on when you first started driving for them.
Drivers who have been with Uber since the outset will have a grandfathered 20% rate, though there are very few drivers who have been continuously working with Uber for so long. Any new drivers will be subject to the 25% rate, meaning that they receive 75% of the fare for every customer.
Of course, there is also the Uber Surge system, which gives drivers an extra 50% on each fare when there is a high demand for drivers within a certain area. As I mentioned earlier, the cost of a fare is determined by the distance that the driver has to go as well as how long they have to be driving for.
Once a week of work has been completed, a driver can expect to receive a pay statement from Uber containing the details of how much money they made over the course of the week. This can include fares as well as any commission they’ve made off of referring other drivers to Uber.
However, there’s no guarantee that the pay statement will arrive at the same time as the pay for the week, as many drivers receive the statement on Tuesdays, which is one or two days before being paid. Another thing to consider is that the day your pay statement arrives can vary, so there are no worries if it doesn’t come right on time.
You can find your Uber pay statement in a variety of ways, including through email or through the Uber app. You can also see the full pay statement on Uber’s website, which you will be able to access through your computer so that you can see further details that may not be available on the other statements.
Your pay statement will contain information like the amount of money that you receive from your fares, as well as how much extra money you earned through giving people Surge rides. Uber will also list out the amount of money they subtracted from your fares as their own fee.
Uber will also reimburse you for any tolls that you have to pay while driving for them, and this will also be listed out on your pay statement. Finally, the statement will contain additional payouts like long pickup fees, cancellation fees, and other payments that you can expect to go through.
Once Uber has determined how much money they owe you for a pay period and sent out the pay statement, most drivers can expect their pay to arrive on Wednesday or Thursday, depending on processing time. In most cases, drivers can expect to be paid out through direct deposit.
This direct deposit should begin processing on Wednesday, and whether or not it clears by the end of the day will depend on how fast your bank processes direct deposits. Some banks may allow you to access the funds by the end of the day on Wednesday, while for others, you’ll have to wait.
If you don’t end up getting access to your money by the end of the day on Thursday, then you may have a problem on your hands. I’d recommend getting in touch with Uber’s driver support hotline to determine if something went wrong when they were sending you your payout and how you can rectify the problem.
Keep in mind that this way of getting paid isn’t the only form of payment that Uber offers, as Instant Pay is also an option. Drivers must qualify for Instant Pay on a case-by-case basis, and if they do, they will be able to access their funds much faster, to the point that they can often withdraw their money right after a ride.
If you have Instant Pay enabled, then you can expect to receive your payout every day, allowing you to access your money far sooner. However, if you don’t qualify for Uber’s Instant Pay, then you’ll have to stick to their traditional direct deposit system in which you have to wait until Wednesday every week.
Uber Bonus Payments
There are also a few cases in which you can expect Uber to send you bonus payments, and these will typically be separate from what you’re paid out every week. For example, if you refer a passenger, you’ll get five dollars when someone uses your promo code and hails their first ride through Uber.
If you refer a driver to Uber, you’ll also get a payment when the driver completes a certain number of rides after entering your promo code. If you want to see your referrals broken down, then check the detailed pay statement on Uber’s website to determine how much money you got from who.