4 Strategies for Maximizing Your Rideshare Driver Earnings
The Gist
Whether you’re a new rideshare driver or you’ve been doing it a while, there are ways to maximize your earnings.
Having a positive mindset is one of the most important — you are your own boss, after all!
One way to save money on gas is with loyalty cards and gas tracking apps.
It’s important to track your mileage and expenses so you can lower your tax burden when it’s time to pay your Quarterly Estimated Taxes.
These tips apply to Uber, Lyft, Juno and any other rideshare app or company that classifies its workers as independent contractors.
Rideshare drivers can maximize their tax savings by tracking their earnings, expenses, and mileage using the Stride App.
In This Article
What are four essential tips for maximizing your rideshare driver earnings?
How does the Stride App help rideshare drivers maximize their earnings?
In Short
A lot has changed in the rideshare and delivery industry since Uber launched publicly in 2011. Competitors like Lyft have joined the market, increasing options for anyone who wants to make a little extra money as a rideshare driver.
With inflation and rising gas prices, rideshare drivers are feeling the pinch and should take every available avenue toward maximizing their earnings. These strategies can include changes in customer service outreach, the times you choose to drive, or even insurance and tax savings that come with rigorous record keeping.
While the average rideshare driver earnings may vary, we’ll discuss a number of popular approaches to maximizing rideshare driver earnings and resources that make it easy to manage these tasks.
Here are four essential tips for maximizing your rideshare driver earnings:
1. Have a positive attitude while you’re “on the clock” — even when you don’t have a far.
Whether you’re driving for Uber, Lyft, Juno, Via, or any number of rideshare companies, the most important thing to remember is to keep a positive mindset. Although it may not seem like it all the time, ridesharing is a customer service job. That means the time-tested adage, “The customer is always right,” comes into play.
Because most rideshare apps will classify you as an independent contractor, that means the spotlight is on you to provide an exemplary customer experience during every ride. One great way to make sure you’re maximizing your tips and five-star ratings is by keeping a positive mindset.
One of the great things about being a rideshare driver is that you’re able to set your own hours, take a break when you want to or need to, and be your own boss. This means you have to practice self-management and make sure you are always putting your best self forward.
Relaxation tactics like controlled breathing and meditation can help keep you mindful as you go about your day, and you mightsee the results of your efforts in increased tips. A relaxed rider is a happy rider – and a happy rider tips better than someone who arrives at their destination rattled.
If you practice a positive mindset from the moment you enter your car at the beginning of your shift, you’ll notice a difference in the way you approach customer interactions. A smile and a friendly word while offering to pick up their luggage can go a long way toward creating a more comfortable ride.
Be mindful and aware of your customers’ mindset as well: Someone who is already frazzled, for instance, might need relaxing music or even complete silence. Being aware of your customer’s needs, urgency, and tolerance for the small talk can also add up to a more positive experience and (hopefully) more tips for you.
2. Stop spending too much on gas!
We’ve all felt pain at the pump recently as gas prices continue to rise. This can seriously eat into your earnings as a rideshare driver because your rates are set by Uber, Lyft, etc., and don’t typically account for day-to-day (or location-to-location) changes in gas prices.
Here’s how to make the most money with Uber or Lyft by saving money on gas and maximizing your profits as a rideshare driver:
Drive an Electric or hybrid vehicle
Sign up for gas savings apps/cards
Monitor gas prices
Keep the tank fueled up
Track your expenses
The first tip seems rather straightforward: electric and hybrid vehicles use up less gas and, therefore, will save you money in the long run. Even though new electric vehicles can be pricey, there is a chance your purchase may be subject to tax credits at the federal or state value, depending on which one you buy. One drawback to this approach may be if your city doesn’t have an abundance of charging stations, meaning you would need to plan your day around their location.
Many gas stations offer bespoke apps or loyalty cards that can save you money at the pump. All you have to do is sign up and make sure you punch in your phone number or swipe your card or key tag every time you purchase gas. It’s definitely worth shopping around to see which gas stations in your area or the area where you’ll be driving offer the best discounts to loyal customers.
There are a number of gas price tracking apps, like GasBuddy, that use a map-based interface to show you the cheapest prices in your area. Knowing which stations, neighborhoods, or locations regularly have the lowest prices will help keep your gas costs down and your profits up. The Stride App also offers gas discounts.
This one sounds a bit like a no-brainer, but if you keep your gas tank full (or at least, above half-full) and commit to only filling up when you’re at the stations where you get the best deal on gas, you’ll save a lot of money over time. Keeping the tank above half means that you’ll make fewer rash decisions like filling up at expensive state-line or airport gas stations.
When tax season comes around, it’s important to have all of your records in one place. That means keeping track of all your earnings and expenses, as well as your mileage. Tracking every gallon of gas you put into your vehicle can add up to massive tax savings. The more you work, the more you save!
3. Maximize your tax savings by tracking expenses and staying on top of quarterly estimated tax payments.
The so-called “gig economy” (that’s the general name for primarily app-based independent work) is still developing, which means there may be new benefits on a year-to-year basis. For this reason, it’s important to use a tool to keep track of your mileage, spending, and other expenses.
As a rideshare or delivery driver, you are your own boss. The downside is that you have to be your own business, as well. Keeping track of your mileage and expenses can go a long way toward saving you money when tax season comes around – but with your busy work day, it’s easy to lose track of those finer details.
Because you’re an independent contractor, you’ll have access to certain tax deductions for business expenses. Put another way, the amount you spend on certain business expenses can be deducted from your “gross” (or “pre-tax”) income, thereby lowering your tax burden.
Tax deductions available to rideshare drivers include:
Parking
Gas
Tolls
Vehicle repairs
Tax prep or consultations
Licensing fees
Insurance payments
Keep track of all expenses, because those business purchases can add up to big tax savings. Additionally, make sure to pay quarterly estimated taxes to both the federal and state governments. It’s important to budget for these quarterly payments, but if you save about 30 percent of your gross income, that should usually cover it.
Mark your calendar with these quarterly tax deadlines:
Q1 Deadline: April 18, 2023
File estimated taxes for January 1 to March 31
Q2 Deadline: June 15, 2023
File estimated taxes for April 1 to May 31
Q3 Deadline: September 15, 2023
File estimated taxes for June 1 to August 31
Q4 Deadline: January 15, 2024
File estimated taxes for September 1 to December 31
These dates can change from year to year if the 15th falls on a weekend or a holiday, so check with the IRS and your state’s Department of Revenue to be absolutely certain.
4. Save money on insurance.
You probably already know why it’s important to have insurance. Having comprehensive health, dental, vision, accident, disability and other insurance policies give you peace of mind that you’ll be taken care of in case you are injured or worse.
For these reasons and more, we recommend shopping around to save money. Websites like Stride Health can help compare and contrast available plans.
But beyond the regular “save money by paying less” stuff, did you know that as a rideshare driver, you might qualify for subsidies that can help lower the cost of your insurance? Thanks to the The American Rescue Plan Act and Inflation Reduction Act, these subsidies are available to more Americans than ever before.
Here’s what you need to know about health insurance subsidies as a rideshare driver:
The American Rescue Plan app removed the income cap (which was previously 400% of the federal poverty level), meaning depending on your state of residence, you might qualify.
Subsidies are allocated on a sliding scale based on your annual income. Even at the highest income level applicable, you will not be expected to pay more than 8.5% of your annual income to health insurance premiums.
If you earn 150% of the federal poverty level, you may be eligible to receive additional perks, like year-round enrollment and enhanced subsidies.
Federal poverty level guidelines for 2023 are as follows:
The Steps On How To Make More Money With Uber Or Lyft Sound Like A Lot Of Work!
Being a rideshare driver can be incredibly lucrative if you have a certain mindset. You get to be your own boss, but that also means you have to be your own business.
Now that you know how to make more money with Uber or Lyft, it’s important to stay on top of your earnings, expenses, and estimated tax payments – so don’t forget to use the Stride App. The Stride App’s easy-to-use interface will help manage those details, so you can focus on being the best rideshare driver possible, and best of all — it’s free!