A millennial Uber and Lyft driver who earned $25,000 last year explains how he makes money when customer tipping is 'nonexistent'

• Ken, 36, drives part-time for Uber and Lyft in Texas while balancing a full-time job.
• He said "nonexistent" customer tips have made it harder to earn money as a rideshare driver.

Ken, a 36-year-old Uber and Lyft driver in Houston, uses his one-hour commute to work each morning as an opportunity to make some extra money.

He wakes up at 6:00 a.m., checks his ride-hailing apps for passengers heading toward his office, and then drives for an hour or two before starting his day at his 9-to-5 job.

"After work, I drive for as long as I can while heading home," Ken told Insider. He asked that his last name not be included for fear of professional repercussions.

Ken, who started working as a driver in 2021 because he was bored, now drives about four to five hours per day — in addition to his full-time analyst job — to supplement his income. Last year, he earned a combined $25,000 driving for Uber and Lyft from about 2,000 trips, according to screenshots of earnings documents viewed by Insider.

But he said earning money as a gig worker has come with challenges, specifically poor customer tipping.

"People do not tip," he said. "You can play their favorite songs, drive the best, give them belly rubs while taking the best route that avoids traffic. Tipping is currently nonexistent."

Ken 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. Some drivers are calculating their earnings, after accounting for vehicle expenses like gas, to ensure driving is worth their time. Recently, Insider has spoken with several ride-hailing drivers who said tipping has gotten worse over the past year.

Between October 16 and November 5, Ken was tipped an average of $0.46 across 57 Lyft trips — or an overall tip rate of 3.1%, according to screenshots of his Lyft driver platform. That's compared to the 15% to 20% tip range many customers leave at restaurants. Additionally, between October 16 and November 6, he received an average tip of $1.34 across 39 Uber trips — or an overall tip rate of 11.5%, according to screenshots of his Uber driver platform.

In his most recent week driving for Uber and Lyft, from October 30 to November 6, Ken had some especially bad tipping luck. He drove 14 hours across 19 trips — and received $0 in total tips.

Uber told Insider in May that tipping has increased since 2020. Lyft didn't respond to a request for comment by the time of publication.

Conversations about whether or not to tip, and how much, have been on the rise recently, especially as elevated inflation has hurt Americans' wallets and many people have been asked to tip more often — like at the self-checkout line.

To entice customers to tip, Ken said he keeps his vehicle clean and doesn't push people to have conversations. He said he also tries to get as many "airport rides" as possible, which he said are the most likely to result in a tip.

"When I get a ride to the airport, I count my blessings," he said, referring to people traveling to or from the airport.

Keeping gas costs low and not accepting all trips have helped boost his pay

When he tracks his earnings, Ken said his main expense is gas. He said his 2023 Hyundai Elantra is fuel efficient — averaging about 40 miles per gallon — and that this helps keep his gas expenses as low as possible.

While he accepts most rides, he said he prioritizes trips that pay at least $0.80 to $1.00 per mile excluding vehicle expenses — a ride's base pay and distance are displayed on the app.

"I have seen a 50-mile trip that only $20 was offered," he said. "I wouldn't be doing that."

Ken said he also tries to avoid trips that take him too far out of Houston because he worries he won't be able to find trips for the ride back — he calls these "empty miles."

There seem to be more drivers in his area, which he believes has made it harder to earn money, he said. He's also encountering more traffic than he used to, which he attributed to Texas's population boom.

Despite these challenges, he likes the flexibility — and extra cash — his ride-hailing gigs provide.

"It's really a grind," he said. "But it's doable."