An estimate of what a rideshare driver actually nets per real hour worked...
...and why a real job is so much better.
Your time is valuable, on regular jobs your being paid regardless if your productive or not. Not on rideshare, your actually working a lot and NOT getting paid for your time, like when driving back empty, repositioning or between trips. Only when an order comes in.
So I had AI compare the two.
Assumptions:
Massachusetts
Official floor: about $33/hr engaged time (state AG settlement starting 2025).
Likely profit after 50% deadhead & full costs: ≈ $8-12/hr.
vs
State minimum wage: $15.00/hr.
New York City
Official floor: roughly $1.36/mi + $0.58/min engaged (TLC rules) ≈ $26-28/hr gross engaged.
Drivers must also carry their own commercial insurance, which adds significant fixed cost.
Likely profit after 50% deadhead & full costs: ≈ $5-10/hr.
vs
State minimum wage (NYC large employers): $16.78/hr.
Minnesota – Twin Cities (Minneapolis & St. Paul law, effective 2025)
Official floor: $1.28/mi + $0.31/min with per-trip minimum.
Likely profit after 50% deadhead & full costs: ≈ $7-11/hr.
vs
State minimum wage: $10.59/hr (small/large employer rates vary).
California (Prop 22 statewide)
Uber created it by the way
Official floor: 120 % of local minimum wage for engaged time + $0.30/mi expense add-on.
Likely profit after 50% deadhead & full costs: ≈ $3-8/hr depending on region and gas prices.
vs
State minimum wage (2025): $16.00/hr (some cities higher).
Washington State (statewide law)
Official floor: $1.31/mi + $0.38/min or $5.17 minimum per trip (2025 adjustments).
Likely profit after 50% deadhead & full costs: ≈ $8-13/hr.
vs
State minimum wage: $16.28/hr (2025 indexed).
Seattle (stricter city ordinance)
Official floor: $1.55/mi + $0.66/min or $5.62/trip (whichever higher).
Likely profit after 50% deadhead & full costs: ≈ $9-14/hr. This is the best rate in the country.
vs
State minimum wage: $16.28/hr.
Elsewhere in the U.S., Uber and Lyft set rates themselves and there is no official pay floor, so drivers’ net with 50% deadhead commonly runs around $4-8/hr after full costs.
With tips?
Typical tips add maybe $2–4 per engaged hour—nice when they come, but not enough to overcome low pay or deadhead miles. - ChatGPT
The gas only mentality explained
The “gas-only mentality” is when a rideshare driver thinks profit is fares minus the gas pump bill and ignores the real costs—depreciation, maintenance, insurance, taxes, and their own time.
It feels profitable because the cash left after filling up looks like income, but once you add true per-mile expenses (≈$0.70/mi) and unpaid deadhead miles, the driver is often earning far less than minimum wage—or even losing money. - ChatGPT
Drivers often neglect to save for a replacement vehicle (which car loan people don't count gig work as a reliable income source) or for maintenance etc. and wind up spending that money and get caught (like after an accident) with no safety net in place to get them back on the roads earning. Many drivers wind up not being able to afford their own living expenses and wind up living out of their vehicles.
Uber/Lyft's low pay is consistent with an operation built on a high 50-70% annual turnover rate and part-time labor, not on developing stable careers. - ChatGBT
Uber/Lyft doesn't want career drivers, all they need to survive is enough that will try it. - ChatGPT
The rideshare business model is exploitative by design. - ChatGPT
Your very welcome. 😊
Learn the secrets of profitablity
...and why a real job is so much better.
Your time is valuable, on regular jobs your being paid regardless if your productive or not. Not on rideshare, your actually working a lot and NOT getting paid for your time, like when driving back empty, repositioning or between trips. Only when an order comes in.
So I had AI compare the two.
Assumptions:
- 50% deadhead miles
- Average operating cost ≈ $0.70/total mile (per IRS)
- no tips (for now)
- self-employment taxes.
Massachusetts
Official floor: about $33/hr engaged time (state AG settlement starting 2025).
Likely profit after 50% deadhead & full costs: ≈ $8-12/hr.
vs
State minimum wage: $15.00/hr.
New York City
Official floor: roughly $1.36/mi + $0.58/min engaged (TLC rules) ≈ $26-28/hr gross engaged.
Drivers must also carry their own commercial insurance, which adds significant fixed cost.
Likely profit after 50% deadhead & full costs: ≈ $5-10/hr.
vs
State minimum wage (NYC large employers): $16.78/hr.
Minnesota – Twin Cities (Minneapolis & St. Paul law, effective 2025)
Official floor: $1.28/mi + $0.31/min with per-trip minimum.
Likely profit after 50% deadhead & full costs: ≈ $7-11/hr.
vs
State minimum wage: $10.59/hr (small/large employer rates vary).
California (Prop 22 statewide)
Uber created it by the way
Official floor: 120 % of local minimum wage for engaged time + $0.30/mi expense add-on.
Likely profit after 50% deadhead & full costs: ≈ $3-8/hr depending on region and gas prices.
vs
State minimum wage (2025): $16.00/hr (some cities higher).
Washington State (statewide law)
Official floor: $1.31/mi + $0.38/min or $5.17 minimum per trip (2025 adjustments).
Likely profit after 50% deadhead & full costs: ≈ $8-13/hr.
vs
State minimum wage: $16.28/hr (2025 indexed).
Seattle (stricter city ordinance)
Official floor: $1.55/mi + $0.66/min or $5.62/trip (whichever higher).
Likely profit after 50% deadhead & full costs: ≈ $9-14/hr. This is the best rate in the country.
vs
State minimum wage: $16.28/hr.
Elsewhere in the U.S., Uber and Lyft set rates themselves and there is no official pay floor, so drivers’ net with 50% deadhead commonly runs around $4-8/hr after full costs.
With tips?
Typical tips add maybe $2–4 per engaged hour—nice when they come, but not enough to overcome low pay or deadhead miles. - ChatGPT
The gas only mentality explained
The “gas-only mentality” is when a rideshare driver thinks profit is fares minus the gas pump bill and ignores the real costs—depreciation, maintenance, insurance, taxes, and their own time.
It feels profitable because the cash left after filling up looks like income, but once you add true per-mile expenses (≈$0.70/mi) and unpaid deadhead miles, the driver is often earning far less than minimum wage—or even losing money. - ChatGPT
Drivers often neglect to save for a replacement vehicle (which car loan people don't count gig work as a reliable income source) or for maintenance etc. and wind up spending that money and get caught (like after an accident) with no safety net in place to get them back on the roads earning. Many drivers wind up not being able to afford their own living expenses and wind up living out of their vehicles.
Uber/Lyft's low pay is consistent with an operation built on a high 50-70% annual turnover rate and part-time labor, not on developing stable careers. - ChatGBT
Uber/Lyft doesn't want career drivers, all they need to survive is enough that will try it. - ChatGPT
The rideshare business model is exploitative by design. - ChatGPT
Your very welcome. 😊
Learn the secrets of profitablity
