There are a number of tricks that will help you maximize profits as an Uber driver – but the first step is to know exactly what you’re making.
Getting paid as an Uber driver may seem like a complicated process, but it does not have to be.
Keep reading to learn more about where to find your earnings, what to deduct, and how to maximize your earnings.
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How Do I Calculate My Uber Profits?
You can start to calculate your Uber profits in the section of the driver app titled “Earnings.” When you arrive at this section, you will be able to see all of your earnings from that week’s trip. You can also see the following features:
- Earnings from past trips
- Fares from specific trips
- Your total earnings to date
Seeing your earnings in the app allows you to have a convenient view of your earnings at all times.
How to View Tips
On each trip you take, the passenger has the option to give you a tip. If you are looking for a record of your tips, you can find these in the Earnings section. They will be listed as part of your total earnings, along with trip earnings and promotions.
If you are wondering how much a specific passenger has tipped you, you can see this information in the details for a specific trip.
Keep in mind that passengers can give you a tip until 30 days after your trip. Even if you haven’t received a tip from a passenger in your weekly earnings, this could still show up later on in your overall earnings.
What is Deducted From My Uber Profits?
Although you earn the majority of a trip fare, Uber does deduct certain fees from your earnings. The most common one is a service fee. This is a standard 25 percent commission from each of your trips.
Another thing to keep in mind is that passengers are charged booking fees when they sign up for a ride. This money goes directly to Uber, and you will not see it reflected in your earnings.
Cancellation Deductions
The most common deduction from a driver’s earnings beyond a service fee is for cancellations. If you cancel on a passenger because of an inconvenience, a cancellation fee will be deducted from your earnings.
However, if the passenger cancels on you, they will be responsible for paying the fee. If you cancel because of safety reasons, you will not have to pay a fee.
If there is any dispute over a cancellation fee, you can contact Uber directly for more information or reimbursement.
Are My Earnings Taxed?
As an Uber driver, you are considered an independent contractor. Because of this, Uber does not deduct taxes from your earnings.
When you pay your annual income taxes, you will have to report your earnings and will then be taxed accordingly. The amount of tax you pay will depend on how much you earn, and other factors such as how many dependents you may have.
How to Maximize Profits as an Uber Driver
There are several strategies to increase your overall profits as a driver.
Make Referrals
If you refer other people to drive for Uber, you will be compensated for this. If you have friends or family that you think would be a great fit, encourage them to sign up for Uber. You will be helping them secure an income, and also adding to your own overall earnings.
Make the Most of Promotions
Uber offers promotions in certain locations or at certain times. If you take advantage of promoted trips, you will earn more money. You can find promotions in the app. Sometimes you have to meet certain requirements to complete a promotion, such as having a certain acceptance rate or the number of trips.
Uber usually offers promotion opportunities during times where there is a need for Uber drivers. For example, you may earn promotions for doing a certain amount of trips during rush hour or late at night.
Final Thoughts On How to Maximize Profits as an Uber Driver
In recent years, driving for Uber has become a popular job, and it has a lot of earning potential as well. As an Uber driver, it is natural that you are profit-focused and looking to be compensated for your time.
Fortunately, the Uber app is easy to use, and you can rest assured that there is fair documentation of the money you make as a driver.
