In May 2023, U.S. rideshare sales at Uber increased 6 percent over the same time last year – already up 64% over their market share in 2021. Lyft is not showing the same level of interest, but has increased approximately 62% since the initial pandemic lockdowns.
While the margins aren’t as healthy as when the titans of rideshare started, they are still a viable side hustle for those willing to, well, hustle. Drivers in some states have an easier time making it work than others.
High Rise Financial analyzed each state to determine which ones are most suitable for Uber drivers, in particular. The study examined drivers’ earning potential, average trip fares, customer demand, and living costs. Minnesota ranked first on the list, with the best scores in the categories mentioned above.
Minnesota Uber drivers tend to make a better wage when prioritizing trips since they serve a larger customer pool. Their hourly mean wage is $16.71, which may sound low, but Minnesota’s living wage is $36,900 per year, so the $40,100 the average Uber driver makes is well above that line. Not surprisingly, there aren’t as many drivers in Minnesota competing for the rides, so every driver has the opportunity to make more money.
Michigan comes in second on the list. Their Uber drivers make an average of $37,900 per year, with a high of $46,202, according to Salary.com. That’s a good deal for one person since Up Homes reports the average income for an individual is $30,723. The average household income is $59,234, so an Uber driver with a family can go a long way toward making ends meet on that salary.
Oklahoma Uber drivers have the third-best deal on the list. Salary.com reports their average salary is $35,302, topping out at $43,102. Since the average cost of living for a single person in the Sooner State is $38,650 per year, according to SoFi, being an Uber driver isn’t a bad way to make a living.
New Hampshire is fifth on the list and has the best job security. The typical full-time driver makes an average of $5,500 above the annual living wage of $36,000.
What About Other States?
Unfortunately, not all Uber drivers make as much as those in the top three states. Many factors contribute to this issue, including the number of drivers in each state. More Uber drivers are competing for the trips, which means fewer trips and, consequently, less cash for each driver. Because of this competition, they are also less likely to take time off when necessary.