Why Uber Needs to Rethink Driver Pay Before It’s Too Late

I’ve been running the numbers on my own Uber driving here in New Zealand. When you strip away the nice marketing and “be your own boss” slogans, the reality is pretty sobering.

After I deduct:

• Uber’s service fees

• Taxes

• Vehicle maintenance (tyres, servicing, repairs)

• Electricity costs (for EV charging)

• Road User Charges

…I’m left with roughly 7 cents in my pocket for every dollar earned.

That’s 7% margin — and that’s before factoring in any unpaid downtime, cancellations, or the fact that Uber drivers take on all the business risk themselves.

Why 7% Isn’t Sustainable

Think about it — small businesses in any industry would shut their doors if they were making this kind of return. It’s not enough to reinvest in the business, it’s not enough to build financial stability, and it certainly isn’t enough to reflect the value we bring to the platform.

We’re not just “gig workers” — we’re the face of Uber to every passenger who steps in the car. We maintain our own vehicles to high standards, navigate unpredictable roads and weather, and make sure passengers feel safe and looked after.

The Reality for Drivers

Some passengers assume we’re making good money. The truth is, every week we’re balancing the decision of whether it’s even worth staying on the road. That’s not a healthy foundation for any service that relies on a network of independent drivers.

Uber can only survive long-term if it ensures its drivers are earning enough to keep doing what we do — not just scraping by.

A Simple Fix: Adjust the Fare Split

This isn’t about asking passengers to pay double. It’s about Uber shifting their take so that more of each fare stays with the driver. If Uber can ensure drivers earn a fair and sustainable rate, they’ll keep experienced, professional drivers on the road — which benefits everyone.

In short: A 7% margin isn’t a business — it’s a slow financial leak. Uber needs to address this now, before more drivers decide it’s just not worth it.