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A comprehensive ranking has unveiled the best and worst states for Uber drivers based on various factors such as earning potential, average fares, customer demand, and living costs. According to the analysis, Wisconsin found itself at the bottom of the list.
The ranking, compiled by High Rise Financial, evaluated each state across four key areas crucial to Uber drivers: earning potential, average journey fares, customer demand, and living costs. Earning potential was determined by referencing the mean hourly wages reported by taxi drivers to the Bureau of Labor Statistics. Customer demand was assessed by comparing the number of drivers in each state to the local population to identify areas overserviced by rideshare services. Average fares examined the typical per-mile price customers paid for their journeys, while living costs compared drivers' annual income to the current living wage in each state.
The worst 10 states for Uber drivers, apart from Wisconsin, included Oregon, New Mexico, New York, Missouri, Kentucky, Massachusetts, Maine, Nevada, and Maryland. Wisconsin's regional competition, along with a higher fare rate of $3.47 per mile, which was 34% higher than Minnesota, contributed to its low ranking.
Minnesota emerged as the prime location for rideshare drivers, presenting significant earning opportunities when serving a large pool of customers. The state boasted an hourly mean wage of $16.71 for rideshare drivers, surpassing the national average of $20.15. This figure was 52% higher than the lowest-earning state, South Carolina, where Uber drivers earned just $10.97 per hour. Furthermore, Minnesota's annual salary of $40,100 for Uber drivers outpaced the state's current living wage of $36,900 by 9%.
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The top 10 states for Uber drivers, in addition to Minnesota, include Michigan, Oklahoma, Iowa, New Hampshire, Washington, Colorado, California, Illinois, and New Jersey. Oklahoma emerged as the state offering the best value to customers, with an average rate of $2.41 per mile, closely followed by Minnesota at $2.59 per mile.
While there is a narrow margin between the top and bottom states, the category in which Uber drivers fared worst was market competition, due to a high saturation of drivers compared to users. Conversely, living costs emerged as the most favorable category.
States with lower financial security for Uber drivers or increased competition are more likely to witness drivers avoiding time off to mitigate lost earnings. Data also revealed that the typical driver lost $450 in earnings last year due to injury, leading them to take 14 days off to recover. Based on the national average hourly wagefor Uber drivers ($20.15) and an average of 15.4 hours worked per week, these two weeks of injury leave amounted to a significant loss of $620 in earnings..
A spokesperson for High Rise Financial commented on the findings, highlighting the challenges faced by rideshare drivers in highly competitive jobs. They noted that drivers were more likely to avoid taking time off, even when necessary, or rush back to work prematurely to minimize financial losses. The absence of a fixed number of sick leave days per year often led workers, particularly those in part-time or self-employed positions, to ignore injuries to avoid time off, potentially resulting in legal consequences for employers.
If you’re thinking about driving for Uber or Lyft, either as a side hustle or in place of a full-time job, you may want to think again.
