UberX drivers in New York City working at least 40 hours a week earn a median wage of $90,766. (Evelyn Hockstein for The Washington Post)
Every day millions of Americans hop in their cars to get to work. But in light of the wages UberX drivers are making, the average American could probably make more money by staying in his or her car all day, and driving for the popular ride service.
A major shift is underway on America’s roadways. For a long time, driving strangers from point A to point B paid terribly. Estimates of the typical cab driver’s salary hover around $30,000.
According 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. In San Francisco, the median wage for an UberX driver working at least 40 hours a week is $74,191.
Uber’s numbers don’t account for the costs a driver incurs to own and operate a vehicle. Still, the gap in compensation for providing similar services is astounding, and illuminates the power of Uber, which is using its mastery of technology to steadily disrupt the traditional cab industry. Worldwide 20,000 new drivers a month have joined Uber’s platform in 2014.
“New people are flocking to Uber in part due to the money that they can make and due to the flexibility you have, basically being able to decide when you want and where you want to work,” said Rachel Holt, Uber’s regional general manager for the East.
Unlike traditional cab companies, Uber capitalized on the rise of smartphones to better serve customers. It has created a more efficient marketplace for connecting those who want to get a ride, and those offering rides. Uber drivers don’t need to waste time circling blocks, hoping to be in the same place as someone who wants a ride. Less downtime means more fares and more money.
“When I talk to Washington, D.C. drivers they’d say, ‘I never knew there were so many people who wanted a ride on 13th street,’ ” Holt said.
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