This is probably one of the biggest questions for people that want to become Uber partners in Australia. The answer is tricky because this all depends on the amount of time that you intend to spend driving for Uber, where you’re driving, and what time you’re driving. It also depends on the type of Uber service that you intend to provide.
You can drive as a part time driver, when you’re done with your other job. Below are the top three questions that driver partners ponder:
We first need to find out how the fares are calculated. Whenever a rider takes a ride in your Uber ride, they are charged a fare and a rider fee. In Melbourne, the fare is A$1 a minute plus A$0.32 per kilometre. In the event that there is surge pricing during the ride, the entire fare is multiplied by that rate. Surge is whereby the fares hike during peak times when the demand for the cars in high.
If someone was taking an 8-kilometre ride to last 30 minutes, in Melbourne, the calculation would look as below, including a 1.3 surge.
(8 Km x A$0.32 + 30 min. x A$1) x 1.3 surge + A$2 rider fee = A$43.56
The amount charged to the passenger will be A$43.56, and with that in mind, we can now calculate the percentage that Uber drivers make. Uber will get their commission from the A$43.56. Once the rider fee of A$2 is deducted, drivers will get a 75% commission from the total fare for the ride, while Uber bag the remaining 25%. Based on the fare above, below is a calculation of what the driver should get:
A$43.56 – A$2 Rider Fee – (A$41.56 x 0.25) = A$31.17
A$31.17 is the total amount that the driver should receive before expenses are deducted. Petrol and tax expenses could vary depending on the type of vehicle.
It is not possible to determine how much each individual driver makes per hour or per week because it depends on how long they work for, the timing (surge or not), and where one is driving.
Uber greatly discourages tipping and it is not allowed through the app. Many riders, however, tend to tip the drivers directly with cash, and especially after a good job done.
There are many factors to consider if you are to determine what a driver earns, but we will look at an example below. Assuming a driver is earning A$30 per hour after taxes and expenses have been deducted, and he is driving for 30 hours a week, their figures should look something like below:
A$30 x 30 hours/week= A$900 a week.
A$900 x 4.33 weeks/month = A$3,897 a month or $46,764 a year after taxes and fuel costs.
No, all Uber driver partners are independent contractors that are just using the Uber platform to make money. This means that they have to cover their own expenses and fuel costs, except in some circumstances that we will look at below.
Being independent contractors, every driver is expected to cater for the repair and maintenance of their vehicles, their compensation being a part of the ride fare.
Whenever the drivers are logged into the Uber app, Uber comes with an insurance policy that covers:
There are certain expenses that Uber doesn’t cover, and these include, when passengers vomit in the vehicle or causes damages. In this case, the driver can request help through the Uber app and the passenger shall be charged an amount to clean or repair the vehicle.
All Uber drivers in Australia are required to register for GST, because they’ll be carrying on an enterprise (business), providing taxi services in the enterprise. An enterprise is an activity performed in the form of a business or in a business-like manner, providing things like receipts or invoices when the service is done.
Definitely. With Uber one can choose whether to drive full time, or whether to drive part time to bring in some extra income to boost their regular job. It all entirely up to the drivers to decide for how long they wish to drive. The Uber schedule is extremely flexible and convenient to driver partners.
It is basically up to the driver in order to find out the exact amount that Uber drivers make. The longer the hours that one drives per day, the more the amount of money that they make. If one targets surge periods, they are also bound to make more. The cities and areas of the city where one is driving also matter a lot. In the areas with less traffic congestion, a driver is bound to make more trips, and hence more money.