Check out this article It's from a few years ago, but its conclusion is that they make less than minimum wages in cities like Detroit. I actually think they are not taking enough out for expenses and the reality is a lot more grim, but it sitll doesn't look so great for Uber.
No wonder people say more than 50% of Uber drivers quit within the first year.
How much Uber drivers actually make per hour [Washington Post]
"Nearly two-thirds of Uber drivers use the ride-hailing service to collect additional income to supplement full- and part-time jobs. But in three large metropolitan cities, drivers make far less than the national average, about $20 per hour, after expenses.
- In Detroit, drivers make on average $8.77 per hour.
- In Houston, $10.75 per hour.
- And in Denver, $13.17 per hour.
But factor in taxes and miles driven without a fared passenger, and earnings are probably much lower, said Lawrence Mishel, president of the nonpartisan Economic Policy Institute.
Since drivers are independent contractors, they pay double the taxes on wages that typical workers do. They pay the portion typically reserved for employers along with standard payroll taxes. So add in another 7.65 percent in taxes."
...and their summary? The earnings after expenses?
"Translate that into dollars and cents, and it cuts a full dollar out of a $13 an hour wage. With taxes alone factored in:
- Detroit drivers make $8.10 an hour.
- Houston drivers make $9.93 an hour.
- And Denver drivers make $12.17 an hour.
That’s barely above minimum wage. In fact, it’s 40 cents below Detroit’s minimum wage."