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Uber says its drivers are making up to $90,000 a year

That's about triple the average cab driver's salary.

By Money Staff May 27, 2014 6:13PM

This post comes from Jillian D'Onfro at partner site Business Insider.

Business Insider on MSN MoneyWith rumors of a huge $500 million round of funding on the horizon, Uber is set to become the most valuable startup in the world.

For users, the appeal of Uber is obvious. You can get a car on demand without the hassle of looking up and calling a cab company. But it turns out it's extremely lucrative for drivers as well.

Businessman driving © Pixland, JupiterimagesAccording to Uber, the median wage for an UberX driver working at least 40 hours a week in New York City is $90,766 a year and $74,191 a year in San Francisco, The Washington Post reports.  UberX is its lower-cost service, where drivers use their own vehicles, similar to Lyft’s service.

For contrast, estimates place the average cab driver's salary at around $30,000 a year. That's nearly triple the income.  New York City Uber drivers even make more than the average tech worker across the U.S., who pull in $87,811 a year.

Although Uber takes a 20 percent cut of drivers' fares, they are more efficient with less downtime because they don't have to cruise around looking for riders, they save money by not having to apply for expensive taxi permits, and can set their own hours.

Granted, Uber hasn't revealed the median income for drivers across all of the 60 U.S. cities that it operates in, but the promise of a more efficient system has lured 20,000 new drivers to join Uber's platform every month since January.

More from Business Insider

May 27, 2014 7:02PM
an bet as soon as the city see this they will make new rules so they can get some of the money all so in a TAX form just watch and see
May 28, 2014 9:24AM
What horrible reporting. The UBER driver is making 90k GROSS and is using their own vehicle. Which means they need to pay for insurance, gas, maintenance, etc. out of that 90k before they see a dime of real income.

A NY cab driver is making 30k driving a company-owned cab. Apples and Oranges...

May 27, 2014 6:55PM

I LOVE UBER!!! It’s WAY cheaper than a cab, I NEVER drive Drunk, nor do my friends, and NO GOVT Pay offs (just two private parties)....I have taken over 100 UBER rides and never had a issues, cant say the same thing for taxi cabs....also so much easier to use, especially when you are drunk!

May 28, 2014 11:27AM

I'm a uberx driver, and uber will cover a million dollars of whatever our insurance doesn't, so does Lyft.

Cabs are an obsolete service. Nearly every passenger hates cabs, especially the scam of we don't accept credit cards. But I can drive them in my car with nice leather seats, Pandora playing with gps turn by turn playing through the stereo so they know they aren't getting ripped off plus I'm not some crazy foreigner that doesn't speak English and it's cheaper. Writing is on the wall cabs, I suggest you buy a nicer car and join the future.

So many have nice cars just sitting in a parking lot doing nothing all day/night, this is a great way to make them earn.

May 28, 2014 10:57AM
Cities are already moving on regulations that will protect licensed cab companies.
You can't make money in the U.S. if you don't play the compliance and taxation game.

May 28, 2014 12:16PM
I'm not arguing that the oil industry isn't part of the problem, but I have not seen a post that mentions the taxes that the Federal, state and even local governments tack on to each gallon of gas and home heating fuel. Compared to the profit the oil companies make, taxes are the biggest part of the cost of fuel. That's why you will never see the government take action to cut the price of gas and oil.
May 28, 2014 10:36AM
I inquired about being a Uber driver but they said I had to have a 2006 or newer car and all of mine are older. Maybe I should invest in a newer car...
May 28, 2014 11:20AM
Wish this was true. It sure would help in paying for the car and the gas it guzzles. Unfortunately, I have a feeling theres something, or a lot of things, missing from this article.
May 28, 2014 10:54AM
insurance rates go WAY up when you are for hire and the owners of our country will soon find a way to get their cut as they always do(that's why they're billionaires and you're broke)
May 27, 2014 9:00PM
They forgot the "e" that the umlawt once represented.  Just sayin'.
May 28, 2014 8:11AM
I think this is great and an innovative way to improve present methods... thumbs up!
May 27, 2014 7:12PM

This may be true for some.  But I know for a fact it isn't true for all.

Jun 6, 2014 4:08PM
I drove Uber for about 6 months in L.A. I started my days around 4:30 or 5:30 in the morning and stayed out til late evenings. I spent so much on gas and maintenance on my car. I even packed my own lunch so I didn't have to spend on food when I was out driving.
I tracked my income from Uber and expenses daily..and at the end of 6 months..I bagged in about 12K net. That's when I said enough and I quit driving Uber.

I used to hear taxi drivers calling Uber as "bandit taxi" and it's absolutely true. I would say UBER is just not a good company. When I started, I had to go pick up the Uber issued iPhone on the curb of the street next to the Santa Monica Library. I thought I was going to pick up the phone at their "office" but noticed it was strange when there was no physical address given on the email I got from Uber which basically just said pick up the phone next to Santa Monica Library.

They don't care about the drivers, they don't care about passengers. All they care is to have reputation on how cheap the ride is compared to regular taxis and how easy you can request for rides. They want to "sell" and false-advertise the income of the top earners so people want to drive Uber. It's simple...the more people want to drive, the more calls they can service and bring in more commissions from drivers. But what they don't tell you is how many hours these drivers have to drive every day and every night. The communication between Uber and drivers is mainly through emails and so is between passengers and Uber. How could that be a good company that cares about its customers?

About that a million dollar insurance thing, they just started offering it a while ago after people started pointing out how loosely they operate without regulations. I only carried my own insurance when I was driving. Thankfully nothing bad happened back then.

It's all about false take it with a grain of salt. Uber may be good for some but bad for others. I wouldn't drive Uber again.
May 28, 2014 1:56PM
Uber is a good service in a lot of ways but it lacks one thing----call Uber when it's raining-snowing-stor​m and then ask me how much they will charge you for that ride that you are used to paying for every night or day.....they mark up all calls within New York city when it's raining snowing-storm----or peak hours----plus i was on the BQE going towards city and noticed 4 people sitting in a toyota avalon scrunched in like sardines and driver wearing a tank top......they looked so uncomfortable but hey they saved a few bucks.........there is more then u know ---that Uber won't say-----when the mayor gets involved trust me it will be harder for Uber and Diblasio is not a fan of will see said the blind man....
May 28, 2014 11:31AM
90k minus more gas,higher insurance, a 20% cut, a higher tax bracket, wear and tear on the vehicle, maintenance even if nothing breaks, and one of the most dangerous jobs equals about 25k left for you and your busted car.
May 28, 2014 10:17AM

This is a lie.   There 120K drivers and 10 jobs for every driver.   The company is ripping their people off.  Biggest scam going.

May 28, 2014 3:35PM
As mentioned by others, many in fact, no mention was made of the drivers having to support the business, with a personal car.  What was barely mentioned was the fee, charged by Uber, the drivers have to pay for each fare.  All in all, I seriously doubt their take home is anywhere near the 90K mentioned as the headline.  Sure, the company pays up to a million above the driver's insurance, in a claim, but that million is nothing in our modern litigious society.  Remember that old lady, at McDonalds, and her twelve million dollar award?  Just think, the driver takes an old lady, somebody's grandma, over a pothole, and she spills her hot latte all over her lap, especially in one of the bigger cities, and the sky's the limit on their liability.  Not to mention, it's entirely possible the driver's personal insurance carrier will probably deny everything, as they weren't informed it was a "business."
May 28, 2014 11:17AM
Don't believe it. These drivers are barely making minimum wage.
May 28, 2014 12:23PM

Beware.  My daughter used Uber for a $35 cab ride.  The Uber driver took her and her boyfriend for a joy ride around the city.  When questioned, the drive said she input the wrong address.  After arriving home, the Uber driver put $250 on the debit card.  Several calls later, the amount was reduced to a more reasonable $50.

May 28, 2014 12:38PM

Uber driver killed a girl in San Francisco.

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