‘I continue to run into a brick wall’

• A Cleveland Uber driver made over $109,000 in gross earnings last year but took home only $17,000.

• He said Uber driving had become less profitable but that he wasn’t sure he could find a better job.

• The driver said his lack of a college degree and physical limitations left him with few options.

George, a full-time Uber driver in Cleveland, wants to quit his ride-hailing gig. But for now, he feels like he has no choice but to keep driving.

The 40-year-old, who has been driving for Uber since 2017, was once quite satisfied with his ride-hailing income, he told Business Insider via email. But his feelings have changed considerably in recent years.

“I used to sing the praises of Uber and recommend doing Uber to people looking for a business opportunity and one where a decent income can be made — but no longer,” George said. His identity is known to BI, but he asked to use a pseudonym for his fear of professional repercussions.

Last year, George made more than $109,000 in gross earnings as an Uber driver, according to documents viewed by BI. But after Uber’s commissions, car maintenance, gas, and miscellaneous driving expenses were accounted for, he took home roughly $17,000, about 16% of his gross earnings. In 2021, he took home about 19% of his gross earnings.

George said he drove between 45 and 55 hours in a typical week and estimated that, after expenses like gas and maintenance, he earned about $17 an hour in 2023 — excluding depreciation and insurance costs.

“Now I’d have to drive around 10 to 12 hours per day, six days a week, if I wanted to make a large sum like I was able to years ago, by working maybe 30 to 40 hours a week,” George said. He recalled one particularly profitable week in 2022, when he estimated he’d earned roughly $40 an hour after expenses.

George is one of several Uber and Lyft drivers who have told BI their ride-hailing gigs are less profitable than they used to be. They’ve accused ride-hailing giants of taking a large cut of rider fares and said increased driver competition and high vehicle expenses haven’t helped matters. These frustrations have led to driver protests and calls for higher guaranteed pay, with a showdown in Minneapolis among the most recent escalation of tensions.

The average Uber driver’s earnings before expenses declined from $29 an hour in 2022 to $25 in 2023, a study from Gridwise, a data-analytics company and app that helps drivers track their earnings, found. A study commissioned by the state of Minnesota and released in March found that in 2022, drivers in the Twin Cities metro area earned less than $14 an hour after expenses.

Story continues

In February, an Uber representative told BI that “the vast majority of drivers are satisfied” and that “as of last quarter, drivers in the US were making about $33 per utilized hour” before expenses.

Many ride-hailing drivers, like George, are actively tracking their income and expenses to make sure driving is worth their time. But deciphering one’s true profitability — or lack thereof — often isn’t straightforward.

And even when a full-time driver gets a decent sense of their profits, they may not like what they see, and quitting driving for another job isn’t always so easy either.

‘I continue to run into a brick wall’

While George wants to trade in Uber driving for a more traditional job, he said there were three reasons he couldn’t.

First, between his rent and other bills, he said, he can’t afford to take a job that will pay him less than ride-hailing does. And he’s not confident he’d be able to find one that checked this box.

“I would only be able to earn, say, up to $20 an hour at a brick-and-mortar job, which would leave me in pretty much the same boat, so that’s not a solution,” he said. “I don’t have a degree, so my vocation pool is limited.”

In recent years, some companies have become more open to hiring candidates who don’t have a college degree. There’s also been job growth in industries that historically haven’t required degrees, such as manufacturing and food services.

But finding a job without a degree — and one that pays well — can still be a challenge for some people. Among Americans ages 25 and older, the unemployment rate of people with only a high-school diploma is 3.9%, compared with 2.2% for those whose highest educational level is a bachelor’s degree, per the Bureau of Labor Statistics.

Second, George said, he has a bad hip that will likely eventually require hip-replacement surgery. Given that a 10-minute shower can leave him in “excruciating pain,” he said any job that required standing for long periods wouldn’t work.

Physical limitations can make it much harder for people to land a suitable job. In 2023, about 44% of men and women between the ages of 25 and 54 with a disability had a job, compared with roughly 83% of people without a disability, per the Bureau of Labor Statistics. In recent years, the rise of remote work has helped more people with disabilities find employment.

Third, George said, his roommate has health issues that make them unable to drive. George said ride-hailing provided him with the flexibility to transport his roommate to doctor appointments and to and from their workplace.

“There are a number of frustrations because I only want to better my life,” George said. “But because of the situation as it is, I continue to run into a brick wall.”

George said he saw one way out: becoming a truck driver, an occupation in high demand in some areas of the US. The job could pay more than ride-hailing — the median driver makes about $54,000 a year, per the BLS — and would be manageable for his hip. If George pursues this job path, he said, his roommate is open to figuring out alternative transportation.

But this solution could come with some challenges of its own. For one, George said the training cost several thousand dollars and that he’d have to undergo several weeks of unpaid training to get the commercial driver’s license necessary for the job. He’s not sure he can afford to forego income for that long.

“I’d have to save money to be able to help my roommate afford things while I was away from home and not earning income,” he said. “As all things in life are, it’s complicated and not just as simple as making the change.”

Are you a gig worker willing to share your story about pay, schedule, and tipping? Are you struggling to find a better job? If so, reach out to this reporter at jzinkula@businessinsider.com.

Read the original article on Business Insider