She Strengthens

The Reality of Driving for Uber and Lyft: A Side Hustle Breakdown

As an Uber and Lyft driver, I’ve grown accustomed to a barrage of questions from curious passengers. They want to know my favorite routes, how I navigate through heavy traffic, and whether I prefer driving during the day or night. But there’s one question that everyone seems to dance around: how much do I actually make?

A Flexible Side Hustle

For me, driving is a part-time gig that supplements my income as a business school student. I’m putting myself through school, and I needed a job that could accommodate my intense academic schedule. Driving for Uber and Lyft offers the perfect solution – I can turn on the app whenever I want, and if I’m swamped with schoolwork, I can simply turn it off.

The Money Behind the Wheel

So, how much do I make? On a good week, I can earn up to $20 per hour, and on a slow week, it’s around $10 per hour. Uber and Lyft take a 20-25% commission from each fare, but during peak hours or special events, they may offer guaranteed hourly rates of $25 or more. On Halloween, for instance, drivers in my area were reportedly earning over $30 per hour.

Tax Benefits and Expenses

As an independent contractor, I’m entitled to deduct 56 cents per mile driven for gas and vehicle maintenance. This can add up quickly – if I drive 100 miles in six hours, that’s a $56 deduction from my earnings. However, if my car has above-average gas mileage or requires less maintenance, I’m essentially making more than my reported income.

Uber vs. Lyft: Which Pays Better?

Contrary to popular belief, Uber doesn’t necessarily pay better than Lyft. In my experience, Lyft rides tend to be more lucrative, but Uber’s higher demand in LA means I get more rides overall. As a result, I end up earning more with Uber.

A Realistic Income Expectation

If I can dedicate 12 hours a week to driving, I can earn around $150 in side hustle money. Of course, some weeks are better than others, but this is a reasonable estimate for an LA-based driver.

The Caveats of Full-Time Driving

My experience is likely different from someone who drives full-time. I’ve only driven eight hours a day during brief school breaks, and even then, it was a mixed bag. Predicting income as a full-time driver can be challenging, but those with more experience may have a better handle on maximizing their earnings.

Peak Hours and Unforeseen Expenses

I’ve found that driving early in the morning and on Friday and Saturday nights tends to be most profitable. Unfortunately, I’ve also had to deal with the occasional messy passenger, which can result in lost income and cleaning fees. However, Uber and Lyft do offer compensation for these incidents, which can help offset the losses.

The Financial Risks of Ride-Sharing

One significant financial issue I’ve faced is the dependence on my car. When I got rear-ended last summer, I was out of commission for a month, which meant no income as a driver. This highlights the unpredictability of ride-sharing as a side hustle – but if you’re a safe driver and comfortable with the risks, it can still be a reliable way to earn extra cash.