Driver Guide

So you want to be a rideshare driver?

I’d like to share what I’ve learned from my experience, as a part-time Uber and Lyft driver for about two years, with anyone interested in how a rideshare service operates.

Plenty has already been written about Uber and Lyft’s disruptive economic model and political struggles, so I want to instead focus on some practical tips and considerations should you decide to participate in ridesharing.

Realize the Costs

There’s an allure to look at your first paycheck, subtract the amount you paid for gas, and view the rest as profit.

Many Uber cities charge passengers less than $1 per mile, a percentage of which goes to drivers. The federal (US) mileage reimbursement rate, in comparison, is 57.5 cents per mile. Better bean counters than both of us have set this figure to represent the total cost of driving a vehicle.

Preventive maintenance on any car includes a bevy of expenses, such as:

• oil changes
• tires
• alignment
• spark plugs
• headlamps and tail lights
• new fluids
• air and oil filters
• belts and hoses
• sensors
• battery
• wiper blades

Things break on cars too. Driving around will accelerate the pace which you incur these bills, plus speed up the depreciation of your automobile’s value. Like a taxi, your car will be undergoing above average wear and tear, as passengers enter and exit the vehicle, you turn on the blinkers more often, do U-turns, and so on. Look up the Blue Book value of your car and add a few thousand miles to see the change of the resale amount that you’ll be losing as well.

You will also have to spend your own time and money keeping your car clean for passengers. I don’t do it, but some drivers feel obligated to provide free treats too. Taxes and the cost of your phone you are probably already paying anyway, but this is another potential consideration.

Minimize your Expenses

You are not a rideshare company’s employee, but an independent contractor doing work for them. This means you owe your own social security taxes as a self-employed person, and receive no benefits (health insurance, paid time off, worker’s comp, etc.) from the entity paying you.

Any time you are not driving around customers, including standing by for ride requests, waiting for people to arrive, and especially driving around an empty car, is furthermore all done on your own dime. Make sure you check out a book or two from your library’s new releases section to have on hand during downtime when you don’t want to backtrack home.

Your market rates can make for a narrow profit margin, especially when you factor in the necessary mileage driving around without a passenger. Ideally, you would pick up a fare not far from your starting location, and continue doing that until you want to end your shift near your desired destination. But traveling empty some non-trivial distances is inevitable.

Keep a log of your time and mileage to compare with your revenue to see how much you’re really making—or losing.

Know the Risks

Tens of thousands of people die in traffic accidents in this country each year. Driving is one of the deadliest professions, greater than being in the military or law enforcement. Prolonged sitting probably isn’t the best thing for you either.

In case of an accident, you might be provided rather thin insurance coverage, so you may wish to purchase additional protection (normal policies typically do not cover you when driving for work).

You will likely be driving at some of the more dangerous times to be out on the road, and could be in an unfamiliar environment. The app will give you driving directions, but like your passengers, this is an added distraction compared to regular driving. A car phone mount is a must.

Your health is the most valuable thing you have. There are risks with virtually any activity, but you need to understand what being a self-employed driver means, and compare it to your net earnings.

Understand the Service

Do you like people? Do you have adept and adaptive interpersonal skills? Have you worked in retail, or another customer service profession? Would you mind being asked, “how do you like driving for Uber?” a hundred times? If not, no matter how good a driver you are, this is not for you.

You will be dealing with an array of personalities, each of which view you as their servant in one aspect or another. And you need to be the perfect servant, because like it or not, this is a ratings-based business.

Try it Out

Ultimately, you can read only so many online guides and tutorials before needing to do it yourself to see if being a rideshare driver is for you.

As long as you have an insured car and a clean driving record, you should have no problems signing up.

Before you take your first ride, do a little research on your town’s market and the company’s policies. If you haven’t yet ridden as a passenger, it’s a good way to learn more about how the service works.

One of the benefits of rideshare driving is that you work very independently and autonomously. You can’t set your own rates, but you do control when you work, meaning that whenever you turn on and off the app is up to you.

Eventually you’ll get a feel for what times and areas work best for your schedule, and learn if it’s something you want to continue doing.

My Verdict

I’ve mostly enjoyed it so far. I did get rear ended during an evening ride, but thankfully there were no damages or injuries. Knock on wood, but I’ve yet to have a truly bad passenger.

It’s definitely not a get rich quick scheme. I often don’t stay up until bar time when the rates go up, but that’s a little riskier environment. And I won’t be quitting my day job. In my market, you can’t really drive full time, unless you adjust your schedule drastically. I would likely burn out from that much driving anyway.

I’ve gotten to meet a bunch of people, brush up on my small talk, and learn the streets and neighborhoods of my city. I’ve enjoyed helping the vast majority of my passengers, and have made some moderate pocket change doing so. It hasn’t paid as much as a steady part-time job would have, but I’m practically my own boss and am not limited to a set schedule.