Mobile Businesses

How To Drive For Rideshare Companies | Become A Lyft Or Uber Driver

Drive Your Way To The Top

You might not know what we mean when we say ridesharing, but upon hearing the word Uber, eureka! It all becomes clear. Ridesharing apps or driving apps like Uber have changed the landscape of personal transportation forever. Add your destination to the app on your phone; boom, a car is waiting outside your apartment. The way we’re going, It won’t be long before computers pilot these cars. However, we still need people behind the wheel for now, so if you enjoy setting your own schedule daily, then maybe driving for a rideshare company might be an excellent choice for you.

Uber And Lyft, Rideshare Companies

Uber and Lyft now operate in almost all U.S cities; they offer enormous benefits to the public. Besides providing much lower fares than traditional taxis, these ridesharing companies offer travelers a more personable experience. The other significant advantage of Uber and Lyft is that almost any motorist can join the company and make a decent living. The eligibility criteria to drive for Uber or Lyft are not difficult to meet. For those seeking a career with these two companies, Read on.

We can now move from one location to another without:

The long or short stroll to the bus/train station.
Driving stress.
Connecting trains or buses.
Navigating new areas.

Here are a few links to get you started

Can I Drive For Both Uber And Lyft?

Yes, many people drive for both ride-sharing companies. Sometimes, one company may offer better rates than the other.

Check out these few links

What Else Do I Need To Know As A Ride-Sharing Driver?

You should know the roads and know the fastest way to get to your destination.
It would help if you had the latest GPS in your car as it will help you navigate roads and get to your destination.
Maintain your vehicle’s interior. Keep it immaculate as riders enjoy a clean, quiet car, and they will be posting reviews.
Be friendly and courteous with passengers.
Be on guard at all times because some passengers may become unruly.

How Do Uber And Lyft Screen Potential Drivers?

Rideshare companies will perform an online screening at the time of your application, and they will assess your driving record. Both Uber and Lyft will conduct a background check for criminal convictions or felonies. You will have to provide your date of birth and social security number.

If you have just moved from another state, you must provide proof of your driving record and vehicle insurance from that state.

What is Assembly Bill 5?

In 2019, California enacted a bill (AB5) requiring ridesharing drivers to become classified as employees, not independent contractors. This means that Uber/Lyft has to provide health benefits and workers’ compensation insurance. Other states are also considering passing similar bills. By visiting your state’s Uber or Lyft websites, you can find out the best approach to your legal status as a driver.

How Do I Become An Uber Or Lyft Driver?

Both Uber and Lyft have websites where you will find an application form. The requirements to drive for these ride-sharing companies are similar and include the following:

You must have a valid driver’s license.
You must meet the minimum age to drive in your state. To drive for Uber and Lyft, you must be at least 21.
You must have at least 12 months of licensed driving experience in the United States. If you are under the age of 23, you’ll need three years of driving experience.
The vehicle you use must be a four-door vehicle.

There are some variations in the requirements in each state, and at the time of application, Uber will familiarize you with what they are.

Uber Or Lyft Driver Documentation

A valid driver’s license from any of the 50 US states
Proof of residency in the town and state
Valid car registration
Proof of vehicle insurance
A photo ID that must be different from the photo on your driver’s license (eg passport, health card)

Here are a few law firms specializing in rideshare

What Costs Do Uber And Lyft Cover For The Driver?

You are considered an independent contractor, so you are responsible for car repair and maintenance, fuel, and vehicle-related expenses. However, Uber/Lyft will pay for all cleaning costs in the case of the dreaded vomit ride. Also, if a passenger spills coffee or beer in your car, they will cover the clean-up. So, it is wise to invest in a couple of onboard cameras to prove any damage caused by abusive passengers.

Do I Have To Pay Taxes While Driving For Uber/Lyft?

In most states, you are considered an independent contractor when you drive for Uber/Lyft. At the end of the year, you will receive the 1099 form. The onus is on you to have accumulated savings to pay your taxes. However, you can write off some job expenses like gas, mileage, leasing fees, and maintenance. To be on the safe side with the IRS, consult with an accountant who can help file your taxes.

How Much Money Can I Make Driving For Uber/Lyft?

The amount of money you make with a ride-sharing company depends on the amount of driving you are willing to do. On average most drivers make anywhere from $15-$20 per hour after the deduction of expenses. Both Uber and Lyft offer bonuses that start when you drive and continue at scheduled intervals if you continue to obtain 50 or more rides.

To make a minimum of $50/k a year, you must provide at least 60-80 rides a week.

How Can I Increase My Profits While Driving For Uber /Lyft?

Drive a cost-efficient car- a hybrid can help save money on gas, but you need to have it charged all the time.
Offer rides during peak times when the fares are the highest
Working in the inner city as fares are more likely
Making food deliveries with the Uber-eat app

What Type Of Vehicle Do Rideshare Companies Require? – Best Car For Uber Driver

Every US city has its own rules and regulations for Uber/Lyft drivers. After you are approved, the rideshare company will notify you whether your vehicle is approved. In general, the requirements are as follows:

The car must not be older than ten years; Both rideshare companies prefer newer vehicles
In a busy city, it is essential to have a more recent and nicer-looking vehicle
The vehicle must have four doors
The vehicle must be able to seat four or more passengers
The vehicle must be an original model car and not be reconstructed or rebuilt.
The vehicle cannot look like a traditional cab
The vehicle must have functional seatbelts for every passenger
The vehicle must pass a safety inspection.

Here is a list of popular auto trader websites

Uber XL Cars And The Rideshare Tier Levels

Yes, both Uber and Lyft have various tiers of cars and additional requirements. Some of the higher tiers are for luxury cars and will require six or more seats. Plus, the vehicle must meet the definition of luxury and cannot be older than five years.

Does Uber And Lyft Require Car Insurance?

The type of vehicle insurance you’ll require depends on your state of residence. Uber and Lyft offer additional insurance if you drive Uber/Lyft customers and use their app. When you are not working for these ride-sharing companies, you will use your personal vehicle insurance when the app is off.

When you request an Uber/Lyft passenger while logged on, both these companies offer third-party liability insurance if your personal vehicle insurance does not apply.

Check out these few insurance programs.

Rideshare Used Car

If you do not own a car or have a vehicle that does not meet Uber/Lyft requirements, you may want to buy a good used car that meets safety and comfort criteria. Purchasing a new vehicle is not recommended as the car will wear and tear significantly. The type and model of a used car will depend on how much driving you plan to do with Uber/Lyft.

Lease A Vehicle, Uber Lyft – Rideshare Car Rental

Yes, both Uber and Lyft allow leased cars operated by their drivers. However, before you rent a car, know ahead of time the mileage restrictions, or you will be heavily penalized. Both Uber and Lyft have partnerships with several leasing companies that can offer you reasonable monthly rates.

Conclusion

Driving for a ride-sharing company is not a bad business endeavor. You can set your hours, the start-up costs are minimal, and you can make decent money depending on how much you drive. Your only requirements are a transparent background and a decent car.