Susan, 60, took a part-time job at Kohl’s after growing frustrated with her pay as an Uber driver.
Susan
Susan, 60, has driven part-time for Uber since 2016 to supplement her income.But she’s driving less due to burnout, lower pay, and poor customer tipping.Instead, she’s working part-time at Kohl’s and hopes to stop driving next year.
Susan, a single mom in Cincinnati, Ohio started driving part-time for Uber in 2016 — in addition to her full-time job — to support herself and her son.
But she said lower pay, poor customer tipping, and high vehicle expenses have started to take a toll on her income. She’s been driving less since early November, when she started working part-time at Kohl’s for about $15 an hour.
Susan is one of the millions of Uber and Lyft drivers in the US who, due in part to fluctuating customer demand and tips, can’t depend on a consistent paycheck. As a result, many are calculating their earnings after expenses to ensure driving is worth their time.
“Driving for Uber is not advantageous anymore,” the 60-year-old told Business Insider. “I do it as a side hustle and am hoping to eliminate it altogether in 2024.” She asked that her last name not be included for fear of professional repercussions.
Susan made $18,000 last year, according to a tax document viewed by Business Insider, and said she drove roughly 15 to 20 hours per week. She estimated that she earns between $22 to $25 before accounting for expenses like gas and maintenance — and about $16 to $18 per hour after. While that’s a few more dollars an hour than her gig at Kohl’s, the added wear and tear on her vehicle and frustration with customers who are stingy with tips might not be worth it for her.
Between October 9 and November 6, Susan received an average of $1.39 in tips from her 100 rides — or an overall tip rate of 12%. That’s compared to the 15% to 20% tip range many customers leave at restaurants. She said tipping has gotten worse since the height of the pandemic.
“It’s hard to look at someone in my back seat with a designer bag, newest iPhone, smelling designer perfume, and nothing left for my time picking you up safely and getting you to your destination,” she said. “I have been stunned to see the lack of tipping anymore.”
Uber’s flexibility is great but drivers need to understand their market
Since Uber’s upfront fares feature went live in Cincinnati last year, Susan said she’s had more information about a trip’s pay and destination before deciding whether to accept or decline it. But she said she’s earning less per mile driven than before the feature was implemented.
When asked about whether the upfront fares feature is impacting drivers’ earnings, an Uber spokesperson didn’t address the specific question but pointed to its November earnings call, where the company said drivers’ earnings levels are “high at about $33 per utilized hour across the US.”
Susan’s top piece of advice for other Uber drivers: understand your market.
“Find out if you are driving in the upfront fare program, learn what is logical to pick up, and what benefits you,” she said. “Take advantage of this program and start to knock rides off that aren’t worth your time.”
Despite her recent challenges with Uber, Susan said having control over her hours has been a major perk.
Before she began driving in 2016, she said she worked part-time as a grocery store cashier. The flexibility of Uber — compared to her 20-hour-a-week structured schedule — appealed to her at the time.
Susan’s part-time job at Kohl’s only runs through the holiday season, but she said she’d consider staying on next year if given the opportunity. If not, there’s a good chance she’ll start driving more again.
“I’m getting burned out, but it is a great side hustle for some money,” she said.
Are you a gig worker willing to share your story about pay, schedule, and tipping? If so, reach out to this reporter at jzinkula@insider.com.