If you're looking to earn extra money, signing up with Uber as a driver may be an option.
According to the company's website, "signing up takes less than 4 minutes." But is it better to be an Uber driver than a licensed taxi driver in terms of earning potential?
According to a recent report published by the Cambridge, Massachusetts-based National Bureau of Economic Research, it appears that Uber drivers earn at least as much as taxi drivers and chauffeurs, and in many cases they earn more.
The study, authored by Jonathan V. Hall, head of economic policy, research and legal for Uber, and Alan B. Krueger, Bendheim Professor of Economics and Public Affairs at Princeton University and a research associate at the economic research bureau, found that there are considerable differences in earnings by city, with San Francisco proving the most lucrative for Uber drivers.
In San Francisco, the authors found that estimated net earnings per hour for Uber drivers in San Francisco were $23.87, compared to just $12.96 for taxi drivers and chauffeurs. In New York City, Uber drivers also can do well, with net hourly earnings amounting to $23.69, surpassing taxi and chauffeur drivers, who make only $12.54 every hour.
Insurance coverage, gas not included in figures
Hall and Krueger point out that Uber drivers tend to earn more in cities where taxi and chauffeur drivers also tend to earn more. They also point out that expenses incurred by Uber drivers, such as gasoline and insurance coverage, are not reimbursed and are not included in the figures in the following chart, which compares earnings for Uber drivers and taxi drivers in six major U.S. cities.
Uber drivers working full time with a medium sedan can expect to incur an hourly expense of $4.79, while employed taxi drivers generally have their costs covered by their company.
(Source: Statista)
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