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As 2024 comes to an end, the rideshare industry has once again proven its resilience and adaptability. Here at Solo, we keep a close eye on rideshare trends that affect overall driver earnings, rideshare industry regulations, and other happenings that impact the gig economy. 

With Uber and Lyft continuing to dominate the market, this year has been a testament to their influence on urban mobility and the gig economy. But how do these platforms stack up when it comes to metrics like driver earnings, tips, and base pay? This year-in-review dives deep into the numbers to reveal key insights about the performance of rideshare platforms and the rideshare industry in 2024. 

From the total deductible miles traveled to the highest-earning cities for rideshare drivers, we’ve crunched the numbers to highlight what matters most to drivers and the industry as a whole. 

While we've previously shared monthly reviews of the rideshare industry through our Monthly Market Pulse series, this marks the first time our dedicated team of data analysts have compiled a comprehensive year-in-review focused on the rideshare industry, highlighting key insights and trends from the past year.

This report is powered by Solo insights and presented to you by VOOM, auto insurance designed specifically for rideshare drivers. 

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Let’s explore the insights that defined the rideshare industry this year, shedding light on trends and opportunities as we move into 2025. 

A Look Back at Key Moments That Shaped the Rideshare Industry in 2024 

In 2024, the U.S. saw significant developments affecting rideshare drivers' pay, benefits, and employment classifications across various states.

By understanding these key moments that shaped the rideshare industry in 2024, drivers can make informed decisions and advocate effectively for their rights within the gig economy.

• In July 2024, the California Supreme Court upheld Proposition 22, allowing rideshare companies to classify drivers as independent contractors rather than employees. This ruling preserves driver flexibility but offers limited benefits compared to employee status. 
• Effective on December 1, 2024, Minnesota became the first state to implement a statewide minimum pay law for rideshare drivers. The law guarantees $1.28 per mile, $0.31 per minute, and a minimum trip payment of $5. This legislation aims to ensure fair wages while addressing service availability in rural areas.
• Earlier this year, Washington expanded protections for rideshare drivers, introducing a paid leave pilot program, and adding death benefits for driver beneficiaries. These changes maintain drivers’ classification as independent contractors while enhancing workplace protections and were developed in collaboration with labor unions.
• In November 2024, Uber petitioned the NYC Taxi and Limousine Commission to lower the minimum per-mile pay rate for drivers by 6.1%, citing reduced costs for gasoline and used cars. This petition sparked debates about balancing driver wages with operational costs.

Total Deductible Miles Tracked in 2024 Among Rideshare Drivers

Mileage tracking is a critical component for rideshare drivers, especially for tax deductions and understanding vehicle usage. In 2024, drivers collectively tracked an impressive number of miles on both Uber and Lyft using the Solo app, highlighting the scale of the gig work industry and the operational demands placed on drivers. Here's a breakdown of the data:

• Rideshare drivers tracked a total of 124,170,000 miles using the Solo app. Based on these tracked miles, you could travel to the moon and back roughly 260 times!  
• Uber drivers using Solo logged 83,370,000 miles, making up a significant majority of Solo users’ total tracked deductible miles. This dominance aligns with Uber’s larger market share, higher trip volume, and broader presence in both urban and suburban areas.
• Lyft drivers using Solo tracked 40,800,000 miles, reflecting a smaller market share compared to Uber. Despite lower total miles, this mileage still represents a significant contribution to the rideshare industry’s overall footprint.

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Top 10 Highest-Earning Rideshare Metros in 2024

Rideshare drivers across the U.S. saw significant variations in average earnings across metropolitan areas in 2024, with several key cities offering higher-than-average pay. The data presented here is based on metro areas with at least 5,000 annual rideshare tasks tracked using the Solo app,  reflecting cities with robust rideshare activity and consistent demand.

As you’ll see in the chart below, Seattle stands out as the highest-paying market for rideshare drivers, with Uber outperforming Lyft. However, earnings on both platforms remain higher than average compared to nationwide earnings. The city’s strong economy, high cost of living, and progressive driver pay legislation likely contribute to these higher-than-average earnings.

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• Seattle, WA: $38.85 avg. earnings per hour (Uber) // $30.19 avg. earnings per hour (Lyft)
• New York, NY: $33  avg. earnings per hour (Uber) // $29.36 avg. earnings per hour (Lyft)
• Tacoma-Olympia, WA: $30.73  avg. earnings per hour (Uber) // $28.47  avg. earnings per hour (Lyft)
• Bend, OR: $29.42 avg. earnings per hour (Uber)
• Santa Barbara, CA: $29.26 avg. earnings per hour (Uber)
• Boston, MA: $29 avg. earnings per hour (Uber)
• Anchorage, AK: $28.46  avg. earnings per hour (Uber)
• Portland, OR: $28.02  avg. earnings per hour (Uber)
• Manchester, NH: $27.90  avg. earnings per hour (Uber)
• Eugene, OR:  $27.81  avg. earnings per hour (Uber)

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2024 Nationwide Rideshare Earnings Insights

In 2024, rideshare drivers earned an average of $19.45 per hour nationwide across the primary rideshare apps. This average per hour earnings figure represents hourly earnings across the entire United States, with tips and bonuses included. Of course, regional and seasonal variations exist with certain metropolitan areas and states showing higher or lower earnings based on a variety of factors.

Drivers on Uber earned an average of $21.44 per hour nationwide in 2024, positioning Uber as the higher-paying platform compared to Lyft. Uber's dominance in the market and broader service offerings, including premium options like UberXL and Uber Black, likely contribute to these higher earnings. However, because of Uber’s market dominance it is likely that Uber drivers also experience higher workload demands and increased competition in certain markets. 

Lyft drivers earned an average of $17.45 per hour nationwide in 2024, slightly lower than the national average. This difference reflects Lyft’s smaller market share and fewer service offerings compared to Uber. To achieve comparable pay levels compared to the national average and competitors like Uber, drivers may need to rely on bonuses or platform incentives.

2024 Nationwide Rideshare Tipping Trends

Tipping trends in 2024 revealed notable insights into customer behaviors and their impact on driver earnings. While tips contribute a smaller portion of overall pay, they remain an essential supplement to drivers' income across all major rideshare platforms.

You can read more about ways to maximize your tip potential as a rideshare driver on our blog! 

Rideshare drivers (both Uber and Lyft combined) received an average of $1.17 in tips per hour across rideshare platforms nationwide. While modest, this additional income provides drivers with a meaningful boost to their overall earnings.

Uber drivers earned an average of $1.29 in tips per hour, which is higher than the industry-wide average. This suggests that Uber's larger customer base and inclusion of premium services may foster a higher tipping culture among its riders.

Lyft drivers earned an average of $1.06 in tips per hour, slightly below the nationwide average. This difference may be attributed to Lyft’s smaller market share and fewer high-end service options, though loyal customers in Lyft-dominant regions continue to support drivers through tipping.

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Final Thoughts on 2024’s Rideshare Trends

As a rideshare driver navigating the ever-changing gig economy, staying alert and adaptable is key to maximizing your earning potential. Key policy changes, such as Minnesota’s new minimum pay law and Washington’s expanded benefits, demonstrate how regulations can significantly impact income and working conditions. 

Drivers should stay informed about local and state legislative changes, as these can directly impact pay structures, benefits, and opportunities. Being aware of these changes enables drivers to advocate for their rights and adjust their strategies to align with the evolving industry landscape.

Based on the research of our team of data analysts, it’s clear that earning potential varies widely depending on the platform, location, and driving strategy. In 2024, Uber drivers earned an average of $21.44 per hour, outperforming Lyft drivers and the national average. 

Drivers in high-demand metros or regions with competitive incentives often fared best. To capitalize on these trends, drivers should consider targeting higher-earning locations, leveraging bonuses, and driving during peak hours. 

Additionally, maintaining excellent customer service—such as keeping a clean car and offering amenities like phone chargers—can help boost tips, which can provide a meaningful supplement to your overall earnings as a rideshare driver!

Tools and resources tailored for rideshare drivers can make a significant difference in income retention. For instance, tracking deductible miles using the Solo app can help drivers maximize tax deductions, while switching to rideshare-specific insurance like VOOM can reduce costs by up to 60%. Expanding the range of gig apps you work with—such as pairing rideshare driving with food or grocery delivery—can help mitigate seasonal slowdowns and address regional market challenges. By adopting a strategic approach and leveraging the right tools, drivers can transform industry insights into practical strategies to maximize their earnings in 2025!

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The data presented here is based on rideshare data from Solo users. Our team of data analysts use this data to identify trends impacting the gig economy, and they share their findings and insights with our readers through our data insights reports.