TAMPA, Fla. — In previous years, the holidays have proven to be the most profitable time for drivers of rideshare apps such as Uber, Lyft and Doordash.

What You Need To Know

  • A recent study by the Institute for Research on Labor and Employment broke down the off-peak season earnings of drivers over the last two years and found that their average pay is actually less than the minimum wage

  • As of the fourth quarter of 2023, Uber drivers in the U.S. were making about $33 per hour while on a trip

  • Florida Uber riders have seen the price of Uber trips increase due to the rapid increase of auto insurance in the state on a year-over-year basis, the company says in statement

However, a recent study by the Institute for Research on Labor and Employment analyzed the off-peak season earnings of drivers over the last two years and found that their average pay is actually less than the minimum wage.

That includes Yvonne Chandler, who has worked for just about every rideshare and delivery app there is.

She says Uber was her favorite.

“It was easy money, and the pay used to be really good, and you could just work when you want,” she said.

But she got off the apps because she feels the perks are no longer as rewarding as they used to be.

“Say if I make $100, half of it goes to the gas,” she said, adding she is keeping up payments on two cars. “I pay $350 a month in car insurance and $1,000 in car payments.”

The study cited driver’s expenses on vehicle maintenance and companies taking a larger percentage of rideshare fares as some factors that make the gig less profitable.

Even though the pay is not as high as he’d like, Yvonne’s boyfriend, Leonida Karassavidos, finds the job fulfilling due to its flexibility.

“I still do it because it’s good for a part-time job, that somebody has to stay home all the time,” he said.

Before Uber takes a cut, he says he makes between $18 to $20 an hour and relies heavily on tips.

“Sometimes, if you accept an order that is not the right amount, the people can give you a cash tip,” he said.

An Uber spokesperson released the following statement to Spectrum News :

“Florida Uber riders have seen the price of Uber trips increase due to the rapid increase of auto insurance in the state on a year-over-year basis, which means the drivers may be seeing a negative impact on the percentage of a rider fare that a rider pays. As of the fourth quarter of 2023, drivers in the U.S. were making about $33 per hour while on a trip. Uber’s effective take rate in the U.S., net of commercial insurance costs, is well below 20%."

The rep also said Florida is one of the most lucrative markets for drivers due to tourism.

“I disagree,” said Karassavidos. “It’s just major cities that are making a lot of money. I’m from New York, and Manhattan was really busy with Uber. You can make easy $300 dollars a day. Florida you could probably make $180,” he added.

Karassavidos says as long as there is demand for the service, “There is always going to be money there.”

However, he says it may take more effort to earn a dollar.

“It’s like you are your own boss. You can do what you want,” said Karassavidos.

He says those efforts determine your rewards. An Uber spokesperson also told Spectrum News it is trying to deal with other issues that cost money, like app profile thefts and deactivations.

They have rolled out new driver protections and deactivation policy changes.