How to Become a Rideshare Driver: A Complete Guide
The Gist
In this guide on how to become a rideshare driver, we’ll cover:
Rideshare driving with companies like Uber or Lyft are a great way to make some money as a side-hustle or a full time gig.
Most rideshare companies classify their drivers are “independent contractors” (or “1099 workers”) meaning you are responsible for tracking your own business expenses and paying the taxes you owe.
Applying to be an Uber or Lyft driver is easy, as long as you have a valid license, a clean driving record, and an eligible vehicle.
As an independent contractor, you set your own hours, choose which fares you pick up, and more — you truly are your own boss!
Tracking your earnings, mileage, and expenses with the Stride App is a great way to maximize your tax savings when tax season arrives.
In this Article
In Short
Since Uber launched publicly in 2011, the world of rideshare apps has absolutely exploded. Companies like Lyft, Juno, and Via have all joined the industry in the decade since, with drivers in cities across America (and the world!) This may leave you with the question of how to become a rideshare driver.
Rideshare companies and apps are considered part of the “gig economy,” a general name for app-based independent contractor services and marketplaces. As independent workers, rideshare drivers set their own hours, choose the rides they want to take, and have far more control over their earnings than traditional taxi or livery car drivers. Talk about work/life balance!
Whether you’re considering becoming a rideshare driver as a side job or as a full-time business, there are a lot of things you need to know to be successful.
Start your engines, because we’ve got a lot of ground to cover.
What Is a Rideshare Driver, and How Is It Different from Being a Taxi Driver?
Typically, the taxis are heavily regulated and require drivers to be part of large companies that mandate specific hours, rates, vehicles, and other expenses. Rideshare companies, by contrast, use independent workers that typically drive their own vehicles. This saves money for the company, the driver, and even the customers.
Drivers for rideshare apps are independent contractors, which means they are their own bosses and run their own businesses using the company’s (usually Uber or Lyft) app to handle ride-hailing and payment. The company takes a share of the fare in exchange for access to these features. Customers are free to tip on top of the fares, meaning that you can be rewarded for going above and beyond.
When you’re a rideshare driver, you’re responsible for all the record-keeping of your independent business. While the rideshare app might keep track of your fares and tips, it’s important for drivers to also track their mileage and expenses. That’s where the Stride App can help – keeping all those records in one place and freeing up valuable headspace so you focus on maximizing your earnings!
How To Apply For Uber Or Lyft?
Becoming a rideshare or delivery driver using an app like Uber or Lyft could be your first step toward financial independence, whether you’re looking for some side work or want to start a full-time business.
Before you apply, look into all available options, as certain apps may be providing bonuses or benefits for driving in specific under-served areas. There might also be othersmaller apps (like Juno, Winz, Via, Zum) or even apps specific to your city or region.
How To Apply For Uber
Visit Uber’s site and sign up for an account. You must be 21 years or older and have at least one year of driving experience to be considered. Uber will screen you to verify your age, driver’s license, and driving history. You cannot drive for Uber without consenting to this screening.
To drive for Uber, you must have an eligible vehicle and insurance for that vehicle, as required by local and state laws. Most four-door vehicles qualify, but it’s important to check the specifics.
The minimum requirements to register your car for Uber are:
16-year-old vehicle or newer, unless otherwise stated (sorry, no antiques!)
Four-door vehicle (leave the Delorean in the driveway, Doc)
Good condition and no cosmetic damage (put your best foot forward)
No commercial branding (no energy drink stickers)
If you don’t have a vehicle, Uber offers rental plans to help kickstart your rideshare business.
And that’s pretty much it! After that, you’re on your own – aside from regular app-based support. As an independent contractor, you control your hours, you pick which rides you take, and you decide when you take a break.
With all that freedom, it’s easy to forget the little details, and that’s where the Stride App helps. Our up-to-the-minute mileage and expense tracking helps you manage your rideshare business in one easy app.
How To Apply For Lyft
The first thing to do is visit Lyft’s website. Enter your location to make sure that your vehicle would be eligible to be used as a Lyft in your state or region.
Before applying, you will need the following:
Driver’s license
Background check
Insurance and other documents in accordance with state and local laws
An eligible car (requirements may vary)
Once you’re all set with this, you can apply on the app or website. After you’re approved, check out Lyft’s helpful tutorials, and you’re ready to start earning! Don’t forget – although the Lyft app will be your central hub for ride-hailing and payment, you’ll still need to keep track of your mileage and expenses for tax purposes and to maximize your earnings.
That’s why every Lyft rideshare driver should use the Stride App, a one-stop place for tracking mileage, expenses, earnings, and more. It handles the small details so you can focus on getting your next fare.
Now That You Know How To Apply For Lyft or Uber, How Do You Maximize Your Earnings As A Rideshare Driver?
So you’ve done it – you’re now a rideshare driver, congrats! Welcome to the world of independent work where you are your own boss and run your own business. That means you have to be mindful of your expenses, earning, and profits. We’ve outlined five things every rideshare driver should do to maximize their earnings:
Have a positive mindset. Rideshare is a customer-facing industry, meaning you should do everything in your power to make the experience good for your fares. Little things like offering to help with luggage, providing water and mints, or even just a friendly smile can go a long way toward maximizing your tips. Be mindful and make sure you’re taking adequate breaks to eat and relax so you can bring your positive attitude to every fare.
Save on gas. We’ve all felt some pain at the pump over the past few years, and there are some great ways to save on fuel. Investing in a hybrid or electric vehicle can drastically minimize your costs but may require a large upfront payment. As far as gas stations go, some brands offer loyalty programs that can save you on a per-gallon basis. You may even use a gas price tracking app like GasBuddy to find the cheapest gas in your area.
Stay on top of your expenses and taxes. As an independent contractor, you may have more deductions available than you would initially think. Tracking all expenses associated with your rideshare business — like your cell phone bill, car repairs, and even work-related meals — can make a huge difference when tax season rolls around. The Stride App can help you track all of this spending so you’re ready to go at tax time.. Additionally, it’s important to remember to pay your quarterly estimated taxes and budget for those payments as well.
Shop around for discounts and savings on insurance. Once you get into the rideshare business you may wonder if insurance is an option for you. That’s where Stride’s online comparison tool comes in, as a driver you can shop around for insurance by building a health profile that will help you compare plans.
Find out if you’re eligible for health insurance subsidies. Even beyond being a savvy shopper, depending on your income level there may be subsidies you can apply for to help lower your monthly premium payments. Subsidies are doled out on a sliding scale, but even the top applicable earners are not expected to pay more than 8.5% of their annual income on health insurance premiums.
Track your earnings, mileage, and expenses. Being a rideshare driver means being your own boss, but it also means being your own business. As a result, it’s important to track all of your earnings, expenses, and mileage driven while working. These could add up to massive tax savings when it comes time to pay your quarterly estimated tax payments or submit your annual returns.
Why Is It Important For Rideshare Drivers To Track Their Mileage And Expenses?
When you’re operating your own business as an independent contractor, that means you have to keep track of everything. Every expense, from vehicle maintenance to tolls, parking, and even tax preparation, can add up to big savings for you at tax time.
Some common business expenses that can help rideshare drivers lower their tax burden include:
Parking
Gas
Tolls
Vehicle repairs
Tax prep or consultations
Licensing fees
Insurance payments
That’s why we recommend using the Stride App to track your mileage and expenses as a rideshare driver. This easy-to-use, all-in-one app will save you time and headaches when tax season rolls around.
Now that you know how to become a rideshare driver, it can be a lucrative side hustle or an important stepping stone toward learning to manage your own business. From there, it’s all up to you — set your own schedule, choose the fares you want, and keep your vehicle clean and running.
The possibilities are endless.
