The average Uber and Uber Eats driver saw their earnings decline over 15% in 2023, per Gridwise

• The average Uber and Uber Eats drivers' monthly earnings declined by over 15% in 2023, per a Gridwise study.
• Some drivers told Business Insider that changes in how their pay is calculated have reduced their earnings.

Over the past year, Uber drivers have told Business Insider that it’s gotten harder to make money. This appears to have been part of a larger trend.

That’s according to a new study of over 500,000 US gig drivers from Gridwise, a data analytics company and app that helps drivers track their earnings. Gridwise says it has a database of anonymized gig worker data across millions of trips that it used to conduct its analysis.

Gridwise found that the average Uber driver’s monthly earnings — including tips and bonuses, and before driving expenses like gas, maintenance, and depreciation — declined over 17% in 2023 compared to 2022, from roughly $1,700 to $1,400. Uber Eats drivers saw their monthly earnings fall over 15% in the same period, from roughly $560 to $470.

Gridwise told BI these earnings reflected the amount drivers took home after Uber took its cut of drivers' gross earnings. In the fourth quarter of 2023, Uber reported that roughly 29% of Uber drivers' gross earnings were booked as company revenue, compared to 20% in 2021. The cut taken from Uber Eats drivers was about 18%, roughly the same as in 2021.

The earnings decline from 2022 to 2023 held even when adjusting for working hours. The average Uber driver’s earnings before expenses declined from $29 an hour in 2022 to $25 in 2023. Driving expenses can cost the typical driver between $4 and $8 an hour.

The average Uber driver worked 56 hours a month. Gridwise told BI this included all online hours — the time drivers spend during rides and waiting for trips.

Meanwhile, the average Uber Eats driver’s earnings fell from roughly $20 to $18 an hour before expenses — the average driver worked 27 hours a month.

As of January 2024, the average American earned roughly $35 an hour, according to the Bureau of Labor Statistics.

Some Uber and Uber Eats drivers have blamed what they say is declining pay on increasing competition, declining customer tips, and high vehicle expenses. But the explanation cited by most drivers is the rollout of the up-front fares feature across the country. While this feature has provided drivers with more information about trips before they accept them, it’s also changed how their pay is calculated. Rather than being solely based on fixed time and distance rates, other factors like customer demand are now incorporated.

While it’s not clear exactly how Uber’s algorithm determines pay, many drivers haven’t been happy with the output. Frustration about earnings is the main reason drivers in several cities protested on Valentine’s Day.

In November, Uber said the typical US driver earned about $33 per engaged hour, not accounting for driving expenses. Engaged hours refer to the time between when a driver accepts a trip and completes it. An Uber spokesperson told BI that most drivers are satisfied with their pay.

In addition to Uber and Uber Eats, Gridwise also analyzed the earnings of Lyft, DoorDash, Instacart, and Grubhub drivers as well.

While Uber drivers saw the largest year-over-year decline in monthly pay, the average driver’s $25 an-hour earnings before expenses were still higher than any other gig.

The average Lyft driver's monthly earnings grew by 2.5% in 2023 despite working seven fewer hours a month. Drivers’ hourly earnings rose from $20 to $24 an hour before driving expenses.

In February, Lyft said its median US driver who used a personal vehicle earned about $30 per engaged hour before driving expenses — and $23 an hour once some driving expenses were accounted for.

The earnings of DoorDash and Instacart drivers stayed roughly flat at $14 and $17 an hour, respectively, before expenses, while Grubhub drivers saw their earnings fall from $18 to $17 an hour.

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.