Complete Uber Driver Cost Breakdown Melbourne 2025: Every Expense Explained

The True Cost of Driving Uber in Melbourne

Many new drivers focus on gross earnings without understanding their actual costs. This complete breakdown reveals every expense you'll face—from obvious costs like fuel to hidden fees that erode profits. Know your numbers to maximize net income.

Quick Cost Summary (Weekly Full-Time)

Expense	Cost Range
Vehicle rental (hybrid)	$380-480/week
Fuel (1,500km)	$85-145/week
Phone & data	$5-10/week
Cleaning & supplies	$5-15/week
Water & amenities	$3-8/week
Total Weekly Costs	$478-658/week

Vehicle Costs: Rental vs Ownership

Option 1: Renting from Baraka (Recommended)

Weekly rental costs:

• Toyota Corolla Hybrid: $380/week
• Toyota Camry Hybrid: $420/week
• Toyota RAV4 Hybrid: $480/week

What's included:

• ✅ Comprehensive rideshare insurance ($30-50/week value)
• ✅ Registration ($16/week value)
• ✅ Maintenance & servicing ($15-30/week value)
• ✅ Roadside assistance ($5/week value)
• ✅ Vehicle swaps if issues arise

True cost analysis: While $380-480/week seems high, it includes $66-101/week in costs you'd pay separately with own vehicle.

Option 2: Using Your Own Vehicle

Depreciation (biggest hidden cost):

• New car ($35,000): Loses $7,000-10,000 in year 1
• Rideshare accelerates: 75,000km/year vs average 15,000km
• Annual depreciation: $8,000-12,000
• Weekly equivalent: $154-231/week

Fixed costs:

• Comprehensive insurance: $1,400-2,200/year ($27-42/week)
• Rideshare endorsement: +$600-1,000/year (+$12-19/week)
• Registration: $850/year ($16/week)
• Total fixed: $55-77/week

Maintenance (rideshare accelerates wear):

• Servicing (every 10,000km): $300-500 (every 8-10 weeks)
• Tires (40,000km life): $800-1,200 (every 6 months)
• Brakes (60,000km): $600-900 (every 9-12 months)
• Average weekly: $25-40/week

Total own-vehicle weekly cost: $234-348/week (PLUS depreciation $154-231 = $388-579/week)

Fuel Costs: The Daily Expense

Hybrid Fuel Costs (Recommended)

Toyota Corolla Hybrid (3.9L/100km):

• Weekly distance: 1,500km (full-time)
• Fuel consumed: 58.5L
• Cost @ $1.85/L: $108/week
• Range: $85-115/week (varies with driving style)

Toyota Camry Hybrid (4.2L/100km):

• Weekly fuel: $95-125/week (1,500km)

Toyota RAV4 Hybrid (4.8L/100km):

• Weekly fuel: $110-145/week (1,500km)

Conventional Vehicle Comparison

Standard sedan (7-9L/100km):

• Fuel consumed: 105-135L weekly
• Cost @ $1.85/L: $194-250/week
• Annual cost: $10,000-13,000
• vs Hybrid savings: $4,500-7,500/year

Conclusion: Hybrid fuel savings ($86-142/week) almost cover rental costs. This is why hybrid rentals are so profitable.

Communication Costs

Phone Plan Requirements

• Minimum data: 40GB/month (navigation, app, streaming)
• Unlimited calls: Essential for rider contact
• Reliable network: Telstra or Optus preferred
• Cost: $25-50/month ($6-12/week)

Vehicle Maintenance & Supplies

Cleaning & Presentation

• Interior cleaning: $10-15/week (wipes, vacuum bags)
• Exterior wash: $15-25/week (maintain 4.9 rating)
• Air fresheners: $5-8/week
• Detailing quarterly: $200 (deep clean = $15/week average)
• Total cleaning: $45-63/week

Note: High-rated drivers (4.9+) earn 15-20% more in tips. Cleaning investment pays for itself.

Passenger Amenities (Optional but Recommended)

• Bottled water: $15/week (Costco bulk)
• Phone chargers (multiple types): $30 one-time, $5/week replacement
• Tissues: $3/week
• Mints/gum: $5/week
• Total amenities: $28/week
• ROI: Drivers offering amenities report 35% tip frequency vs 20% without

Hidden & One-Time Costs

Equipment (First Month)

• Phone mount: $25-40
• Car charger: $15-25
• Passenger charging cables: $25-35 (Lightning, USB-C, Micro-USB)
• Cleaning supplies kit: $40-60
• First aid kit: $30
• Umbrellas for passengers: $20 (2 umbrellas)
• Total startup: $155-210

Parking & Tolls

• Waiting parking: $10-20/week (if positioning in paid zones)
• Airport pickups: $5-8 per pickup (if not in holding lot)
• Toll roads: Varies by strategy (CityLink, Westgate tunnel)
• Average weekly: $15-35/week for active drivers

Uber Service Fees

• Uber commission: 27.5% of gross fare (not your expense but affects net)
• Booking fee: $0.55 per trip (paid by passenger, reduces your cut)
• Cancellation fees: $8-10 (you receive if passenger cancels after 2 min)

Part-Time vs Full-Time Cost Comparison

Part-Time (25 hours/week, 750km)

Expense	Weekly Cost
Daily rental ($89/day x 4 days)	$356
Fuel (750km hybrid)	$50-65
Phone & supplies	$10-15
Total	$416-436/week

Typical gross: $800-1,100/week

Net income: $364-684/week

Effective hourly: $15-27/hour after costs

Full-Time (50 hours/week, 1,500km)

Expense	Weekly Cost
Weekly rental (Corolla)	$380
Fuel (1,500km hybrid)	$100-120
Phone, cleaning, supplies	$25-40
Total	$505-540/week

Typical gross: $1,800-2,200/week

Net income: $1,260-1,695/week

Effective hourly: $25-34/hour after costs

Annual Cost Projection

Full-Time Driver (52 weeks)

• Vehicle rental: $19,760 (Corolla hybrid)
• Fuel: $5,200-6,240
• Phone & internet: $312-624
• Cleaning & supplies: $1,300-1,800
• Equipment replacement: $200-400
• Total annual: $26,772-28,824

Gross annual target: $93,600-114,400 (52 weeks x $1,800-2,200)

Net annual: $65,576-86,628

Tax (sole trader ~20%): $13,115-17,326

After-tax take-home: $52,461-69,302

Pro tip: Maximize your deductions! Read our complete tax deductions guide for rideshare drivers to keep more of what you earn.

Cost Reduction Strategies

Maximize Fuel Efficiency

Choosing the right vehicle makes a massive difference. Learn more in our guide to the most fuel-efficient hybrid cars for Uber in Melbourne.

• Smooth acceleration: Saves 5-10% fuel
• Anticipate stops: Coast when possible
• Optimal speed: 60-80 km/h is most efficient
• Tire pressure: Check monthly, saves 3-5%
• Remove excess weight: Every 50kg = 2% more fuel

Smart Rental Strategies

• Weekly vs daily: Weekly rental saves $92-228/week
• Commit to full-time: Better weekly rates
• Maintain vehicle: Avoid damage charges

Frequently Asked Questions

How much does it really cost to drive Uber in Melbourne?

Full-time drivers spend $505-540/week on vehicle rental, fuel, and supplies. Part-time drivers using daily rental spend $416-436/week. These costs are 30-35% of gross earnings for efficient drivers.

Is it cheaper to rent or use my own car for Uber?

Renting is often cheaper when you factor in depreciation, maintenance, and insurance. Own vehicle total cost: $388-579/week including hidden costs. Baraka rental: $380-480/week with everything included.

What percentage of Uber earnings go to expenses?

Well-managed drivers spend 25-35% on direct expenses (vehicle, fuel, supplies). After Uber's 27.5% commission and expenses, you keep approximately 40-50% of the gross fare as net income.

How much should I budget for fuel driving Uber?

With a hybrid: $85-145/week for full-time (1,500km). With conventional car: $194-250/week. Hybrid fuel savings of $100-140/week make them essential for profitability.

Are there hidden costs I should know about?

Yes: vehicle depreciation ($150-230/week if you own), parking fees ($15-35/week), equipment replacement ($5-15/week), professional cleaning quarterly ($15/week average). Total hidden costs: $185-295/week for own vehicle.

Start With Complete Cost Transparency

Baraka Car Rentals offers all-inclusive pricing with no surprises:

• Location: 16 Ishtar Street, Tarneit 3029
• Phone: 0461 555 511
• Toyota Corolla Hybrid: $380/week all-inclusive
• Toyota Camry Hybrid: $420/week all-inclusive
• Toyota RAV4 Hybrid: $480/week all-inclusive
• Includes: Insurance, rego, maintenance, roadside assist
• No hidden fees: Transparent weekly cost

Visit our showroom for a complete cost breakdown specific to your situation. We help you calculate true profitability before you start. Know your numbers, maximize your profit.