With the introduction of rideshare companies like Lyft and Ubers, things in the taxi market have changed dramatically. Not only has the revolution of rideshare companies revealed how much the taxi’s system of relying on medallions has been able to restrict supply, but it has made transportation in urban centers more affordable and convenient for thousands of riders. However, has it made the drivers of these popular urban transportation methods happier?
What are medallions?
In most large cities in the United States, a taxi driver is required to have a medallion that grants them the privilege to drive their taxi. This medallion is issued by the city, typically through an agency like New York’s Taxi and Limousine Commission. Drivers can purchase a medallion and also sell it since they are limited in number. This means that they can demand a premium price for taxi drivers in major cities like Boston and New York.
It isn’t actually typical to own your own medallion. Many taxi drivers lease their medallion from another person. A medallion owner could be an investor, a fleet owner, or even a former driver that doesn’t want to drive anymore. It’s common in larger cities for a taxi driver to lease their medallion by a shift of 12 hours, or even on a weekly basis. Once they path the cost of an up-front lease, a driver can keep all of the tips and trip receipts that they collect as they drive. But keep in mind that leasing these medallions is pretty expensive, or at least that was the case before ride-share businesses became popular.
The introduction of rideshare businesses has increased the amount of drivers that are competing to drive you anywhere you need to go. So, the number of taxi drivers have fallen as the increase of rideshare drivers has risen. With this increased supply of ground transportation, rideshare companies are able to offer something to their riders as well as their drivers that taxi drivers won’t see. While the work that rideshare drivers do is the same as that of taxi drivers, both are free to choose the hours that they work, the rideshare drivers do not need to pay upfront for their right to drive unlike taxi drivers. Instead of leasing a medallion, rideshare drivers pay a portion of their trip receipts to the Lyft or Uber as well as a tax on their earnings to Uber as a fee.
A driver that only wants to drive for a few hours will find leasing a medallion unattractive. However, a driver that wants to drive a lot of hours will earn more and will be more willing to pay a fixed lease versus paying proportional fees. It is important to compare the economic costs and benefits of a traditional taxi driver and a rideshare worker. In particular, you will want to consider how much an Uber or Lyft driver is compensated for rideshare loss of work opportunities when their goal is to be as well off as a taxi driver.
This comparison uses an economic concept of a compensating variation, which is a cash payment that makes it beneficial of being a Lyft or Uber driver. However, if you are a high-hour driver, your compensation as a Lyft or Uber driver is negative since being a taxi driver ends up being better for drivers financially. Typically, most Lyft and Uber drivers only driver part of the time whereas taxi drivers are driving full-time. This means that a Lyft or Uber driver will be worse off if they are driving under a compensation scheme that requires a large lease. So, these drivers will require considerable compensation in order to make-up for any loss from their rideshare earnings.
When considering the contrast between a taxi and an Uber driver, you need to consider all the pay and work arrangements. A taxi-style contract has a fixed-lease that is pretty common in most larger cities. It’s also common among beauticians and hairdressers that rent chairs in hair salon by the week or even the day. But most of the franchise owners will pay a fee that are proportional to their sales to the salon’s owners. In other occupations, a worker can negotiate a mix of a fixed lease arrangement and proportional fees in return for the ability to have the right of the earnings opportunities that are in that field.
Where do fares come from?
If you are thinking about becoming a driver and haven’t decided between Uber or taxi driving, you may be wondering where your fares will come from, and which will be the most reliable. Since Lyft and Uber rides are conducted through only one source, an app, it may seem easier for a driver to get fares. To most people, taxi drivers rely on being hailed by someone on the street, which can seem like an inconsistent way to get fares. However, taxi drivers also get fares from airport travelers, cab stands, dispatch calls, regular clients, and voucher accounts. Plus, some taxi services even use apps.
To be a successful taxi driver, you need to get fares in an efficient manner, avoid road hazards and traffic, and also provide your passenger with a nice customer experience during their trip. One thing you don’t need is a positive rating unlike Lyft and Uber drivers. It can be detrimental to your future earnings if you get one or two negative ratings when you are a rideshare driver. You are always concerned about providing a positive experience and you don’t want to turn down an obnoxious and drunk passenger for risk of getting a bad rating. Ratings help to drive your future earnings since a potential passenger can choose another driver over you based on what other riders felt about their experience in your car.
There are two parameters that govern both the taxi and rideshare industries. The first of which is the elasticity of the driver labor supply. With this elasticity, you are able to tell how much a driver will work in response to a higher pay-rate. Drivers that have elasticity will drive ten percent more in response to being able to earn ten percent more in wages. The labor supply elasticity is relevant to the comparison of taxi and rideshare drivers, while all else is equal to a taxi driver having an hourly wage increase when he doesn’t have to pay a rideshare fee. If a driver has a 25 percent fee, then could remove the wages of a taxi driver 1/3 since a driver can keep a dollar of every far earned instead of only $.75. a driver that has a higher response will pay a benefit from a higher wage by just driving more.
It’s also important to consider lease aversion, which captures what extent a driver is averse to the gamble that is implicit in the decision to purchase a lease. There are many drivers that would benefit from buying a lease, which is due to scaling a nominal lease rate up to an amount that is due to many taxi drivers setting daily income targets. Many who get paid well will stop when they reach their target, however, these drivers tend to end up being poorer than drivers that continue to drive, especially when there is a boost in the demand for transportation.
Drivers tend to consistently respond to higher pay when a worker is faced with a temporary increase in wages when their pay is higher. This leaves the labor supply unchanged. There is a strong labor response to a higher fare for taxi drivers since drivers are more inclined to take advantage of a higher fare that benefits them from a higher wage earned without having to worry about the fees Uber drivers do.
Avoiding a lease
When you consider the taxi type of compensation contract, you will notice that a driver that drives a lot will increase their earnings from the fee reduction that will more than cover all the costs of leasing a taxi medallion. The high hour drivers tend to benefit from contracts that collect fixed amounts in the place of either Lyft or Uber fees. However, there is a gambling aspect to leasing a medallion. By purchasing a medallion, you are in essence gambling that you will get enough fares to cover the medallion’s cost and also give you a profit you can live off of. With the Lyft and Uber fees, you can avoid the upfront cost of the lease and are only sacrificing portions of whatever fares you get. This is a better choice for some individuals that tend to have loss aversion where they are only risking smaller amounts instead of a large upfront amount.
Tips and compensation
Most Uber and Lyft drivers need to be paid an average of $437 in order to move to the $400/week leasing scheme as well as a 25 percent higher wage. This doesn’t offer drivers much of an improvement in wages if you are driving lease free. Typically, an Uber driver will benefit from the opportunities that are provided by rideshare services in a number that exceeds their take-home pay. This means that no matter which ground transportation is offers, a rider Is well off no matter which type of driver is used.
Drivers also need to consider the tips they receive when calculating their earnings. For most drivers, 30 to 40 percent of their income comes from the generosity of their customers. You can expect a few extra dollars for shorter rides, but the larger rides that cost over $30 can see their tips get bumped up even farther. Plus, it’s uncommon to get a larger bill even on a short drive depending on the rider.
However, with all the generous riders that a taxi or Uber driver sees, there are also those riders that don’t give you a tip at all. This can be particularly true for foreign riders that are not as familiar with tipping in American culture. But there are also those passengers that do not tip at all. As far as Lyft and Uber riders, there is actually no expectation of receiving a tip. Unlike Lyft, Uber originally didn’t have a tipping feature in their app, so drivers had to rely on their passengers to give them cash tips. But, that didn’t always happen. Many Uber drivers resorted to using tip jars or signs that read “Tips are appreciated.” And, even with Lyft’s included tipping feature, tips weren’t common and often pretty small.
It's also important to consider the passengers that take a taxi versus an Uber or Lyft. Anyone calling a taxi is typically aware of the exchange and expectation that you tip your driver. Uber and Lyft riders tend to be cheaper since many only call them because they don’t want to pay for a taxi or don’t want to take a bus. Lyft and Uber riders tend to be looking for a cheap ride and will also avoid using these services during surges when they are likely just get a taxi.
So, how do the two compare?
With the gig economies rise, workers have been giving an opportunity to work with a wide range of hours as well as compensation arrangements. However, most Lyft and Uber drivers actually benefit from not needing to pay the up-front fees that give them the right to drive their vehicles. Some cities have already discovered this and are working on alternatives to the leasing programs that are in place to help alleviate the issues of the traditional fixed-fee arrangement.
Driving for Uber vs Lyft: Which is Better?
With the holiday season upon us many people have been looking for ways to earn some extra cash for their gift lists. Most people dig in at work and work endless overtime, while others may clean house and sell off old devices. Another option that people of all ages (starting at 21) have been turning to rideshare apps.
Lyft and Uber are the current titans in this booming industry and are fighting neck and neck for riders AND drivers. Is their a difference between the two? Does one pay more than the other? Let's take a deeper look at both platforms and see where they differ and where they are exactly the same.
In the Beginning
Even though its name has caught on in recent years, Uber was founded almost 10 years ago by Garrett Camp and Travis Kalanick as Uber Cab. Like most life changing inventions, Uber was conceived on New Year's Eve after Camp and some friends had to foot an $800 bill for a private driver. Camp began to think of a way to rectify this, by first realizing that sharing the cost with friends would help, and from there he tumbled down the rabbit hole to Uber. After the first prototype was built by Camp, Oscar Salazar and Conrad Whelan, Kalanick was brought in as the advisor to the company. Kalanick credits Camp for the “idea” of Uber.
Lyft's story goes back even further than Uber's. Logan Green and John Zimmer launched Lyft in 2012 as an added service through Zimride. Zimride was a long distance ridesharing company they both founded in 2007. In the beginning, Zimride was more catered to those traveling long distances. It also used the Facebook Connection application to link passengers with drivers. Before the official name change to Lyft, Zimride was the biggest rideshare program in the US.
Uber Vs. Lyft: Sign Up
Signing up for either one of these companies is a breeze. There is no formal interview process, just a few questions about yourself and your vehicle. As long as you and your vehicle meet the requirements, you can be off on your way towards making money. There may be a difference in sign up bonus money, but they are still relatively the same. Both companies will allow you to use your own car as the vehicle you pick people up in, but that old beat up Pinto in the driveway probably won't cut it. Here are the vehicle and driver requirements for both companies.
Uber: Car Requirements
- Vehicle must be 10 years old or newer (model year 2007)
- Must be a four-door car, truck, or minivan
- Vehicle must have seating and seat belts for 4 passengers, not including the driver
- Must pass a mechanical vehicle inspection
- Driver’s full name must be on the insurance for the vehicle
- Driver’s name does NOT have to be on vehicle registration
Uber: Unqualified Vehicles
- No full-size vans (Ford Transit, Ford E-Series, GMC Savana)
- No taxis or other marked vehicles.
- No commercial markings or advertisements
- No salvaged or rebuilt vehicles (salvage title)
Uber: Driver Requirements
- No convictions for a a felony, violent crime, or sexual offense within the last seven years
- A minimum of 1 year U.S. licensing history
- If under age 23, must have at least 3 years licensing history
- International driving experience doesn’t count
- A clean Motor Vehicle Report (MVR) with no more than 3 incidents in the past 3 years
- No DUIs and no reckless driving
- California Uber drivers must not have a DUI in the last 10 years.
- No speeding violations for driving 20 mph or greater over the speed limit in the past 3 years.
- You must be at least 21 years old
- In-state auto insurance with your name on the policy
- In-state driver’s license
- In-state license plates with current registration (commercial plates are acceptable as well)
- You must have a social security number
Uber will do a background check on you BUT NOT a credit check. You can log onto Uber's website and see which reports they actually check. After you've provided all necessary information it will go through the process of verification. The steps of verification are:
- Onboarding – reviewing your documents and background check
- Waitlisted – issues with your documents; re-running your background check if you’re already a driver.
- Consider – background check is still underway; taking a closer look at your background
- Active – you’re able to log into driver mode and accept rides
- Rejected – your application was rejected, or you’ve been deactivated
Its also important to note that you don't need a car to be an Uber driver. Uber will help you buy, lease or rent a car through Hyrecar.
Lyft: Car Requirements (full list of requirements per state on their website)
- 4-door car that is year 2006 or newer.
- Must seat 4 passengers
- No major cosmetic damage
- No salvage or rebuilt title
- Must pass a vehicle inspection
- Driver must pass a background check and driving record check
- Driver must be listed on vehicle’s insurance policy
Lyft: Unqualified Vehicles
- Full-sized vans (12 or 15-passenger vans like Ford Transit and E-Series, GMC Savana)
- Taxis and other commercially-marked vehicles
- Salvage title or rebuilt title, even if the vehicle is in great condition
Lyft: Driver Requirements
- You must be at least 21 years old
- Own a smartphone: iPhone 5s or newer running iOS 11+, Android devices running 7+
- Comply with any local regulations in your area
- No more than three moving violations in the past three years (e.g. accidents, traffic light violations)
- No major violations in the past three years (e.g. driving on a suspended license, reckless driving)
- No DUIs or other drug-related driving violations in the last seven years
- No extreme infractions in the last seven years (e.g. hit-and-run, felonies involving a vehicle)
Lyft does a similar background check to Uber's. Log on to their website to find out which databases they check. Unlike Uber, Lyft doesn't have a road markers throughout the process. Lyft asks that you give the background check 3-10 days. Similar to Uber though, you do not need to own a car to drive for Lyft. They too will help you get set up with Hyrecar if that is a route you would like to take.
Uber Vs Lyft: Compensation
With both Lyft and Uber its almost impossible to verify how much a driver can make an hr on a consistent basis. As you are not payed hourly, but by the rides you give and tips, it can vary from area to area, driver to driver and so forth. You may see a lot of ads by both companies advertising high pay days and instant payments. The truth is, most drivers can earn about $15/hr. It should be pointed out that that number comes with A BUNCH of asterisks…
Signup bonus: Uber and Lyft
Both companies offer high sign on bonuses of usually a minimum of $500 to as high as $2200. It's important to read the fine print as some of these bonuses are specific to a particular state. Some require a referral code and some require you to be a new driver. There are also some that require you to give a certain amount of rides before you see that bonus. In any case, before you sign up and go through the background checks and car inspections, make sure you know what is required of you to get the amount advertised.
Peak Times: Uber and Lyft
Both Uber and Lyft offer extra money when you drive during peak times like early morning and early evening. This is because a lot of people request rides at this time and there is a lot of traffic out on the road. For example, a ride that might net you $4 and some change at normal hours could possibly be upwards of $6+. Obviously it pays to drive around peak times, but it can be frustrating and extremely busy.
Hot Zones: Uber and Lyft
Just like with peak times, there are certain areas that utilize ridesharing a lot more than others. Normally in the city, drivers are paid extra cash for driving to these areas and giving rides. At the right time, these areas can provide a windfall of cash in a short amount of time, but again, these areas are very busy and very frustrating sometimes. You WILL earn your money in these areas.
XL, LUX, LUX BLACK, LUX BLACK XL: Uber and Lyft
These are services that both apps offer. All they are are bigger cars that can hold more people or luxury cars. If your car meets the requirements to be considered XL or LUX, you'll get a slightly better pay day than regular vehicles.
Money Guarantee: Uber and Lyft
Almost every week, Lyft and Uber will offer incentives to get drivers out on the road. They do this with money guarantees. It may say something like, “Give 25 rides by Sunday and get $250 guaranteed.” If there are no further requirements or restrictions, then all you have to do is give 25 (or amount specified) by the date specified and you are guaranteed $250. Let's say you give 25 and only net $200. Both Lyft and Uber will give you the difference of $50 or whatever the amount you're short. If you give the specified rides and make more than the guarantee, good for you. Nothing extra is coming your way though.
Uber Vs. Lyft: Using the App
Your vehicle passed inspection, you've passed the background check and you've got some time to knock out some rides…now what? You download the app for free. Make sure you download the “driver” app and not the “rider” app. Once again, both apps are nearly identical in what they offer.
Surge Map: Uber and Lyft
After downloading the app and logging in, your main screen will be a map, similar to the one you use regularly with Google or Apple. Your current location will be in the form of a colored “dot” and if you navigate around the map, you'll see the current Surge/hot zone areas, along with a percentage showing how much more you'll make if you drive to this area.
You may get pop up windows of important information that Uber or Lyft wants you to know like:
- Money Guarantees
- Insurance information
- News about the respective company
- Scheduled Pickups
Go Online/Live: Uber and Lyft
At the top of the app is a button that you will slide to the right. This will turn you “on” for giving rides. From this point you can sit in the house and wait for a ride to come through, or you can drive to a “central” location and increase the odds of getting more rides. This is the most straightforward way to drive for Uber or Lyft.
Profile: Uber and Lyft
In your profile tab you'll find all of the information like:
- Vehicle – summary of the vehicle in use
- Documents – all of your documents on file
- Navigation – how to change your navigation settings
- Payment info – your bank info and card info
Earnings: Uber and Lyft
Your earnings tab will break down how many rides you've given, how many hours you've driven, your weekly goal, earnings guarantees, bonus history and ride history. It's also in this tab that you would choose to get paid instantly. It's important to note that there is a small fee for instant deposit and the amount has to be a minimum amount of $7 – 10$.
Uber Vs. Lyft: Flexibility
The beauty of driving for Uber or Lyft is the flexibility. You can start when you want, stop when you want and there isn't a boss telling you how to do your job. There are also a few ways to customize your driving experience to fit your lifestyle. As stated earlier, ‘going live' is the basic way to start driving. You turn on the app and wait to get a ride. Here are some other ways to give rides…
Scheduled Pickups: Uber and Lyft
Rather than sitting around waiting to get the call to pick someone up, you can actually accept scheduled pick ups. These rides are offered hours or even days in advance. They'll tell you how much you should net, where you're going and how long it should take. This is great for folks who might want a little more ‘control' over where they go.
Destination Filter: Uber and Lyft
Destination filter is great for those that have somewhere to be at a specific time but want to earn some extra cash beforehand. Say you're a stay at home mom and you have to pick the kids up at 2pm. With destination filter you can set the schools address and the time you need to be there so that no rides will be offered to you that might make you miss that deadline.
Another function of destination filter is for when you're already on the road heading in a certain direction. With destination filter you can set the app to only offer rides to people that are heading in the same direction.
Uber Vs. Lyft: The Downside
Ride sharing is the perfect way to make money for anyone with a good car and some spare time. While it's hard to pinpoint just how much you can make an hr, if you put in the time, you can make good money. There is a downside to all that money you got floating around in your brain.
Car Maintenance: Uber and Lyft
If this is your “second job” then all the driving you do to get to and from work, pick up kids, pick up spouses and run errands can be a lot. Now imagine being on the road for Lyft or Uber for an hour or two…a few days a week. You're going to burn through your gas faster so some of that money you just made is going into your gas tank. You'll run your miles up faster so you'll need oil changes quicker…and brakes…and tune ups…and more gas.
Both Lyft and Uber offer perks on gas and car maintenance the more you drive and every bit helps, but a broke down car is always an inconvenience.
Hit or Miss Paydays: Uber and Lyft
Even though you can make your own schedule, you'll quickly learn that its more lucrative to drive during surge/peak times or in hot zones. Most hot zones are located in the city or busy areas and most surge times are rush hour traffic. If you yourself is working during those times, you can't reap the benefits. If you don't like driving at that time, you'll be even more frustrated. Going out on a Monday at 11 am for a couple hours will not always be worth your time. The best time to drive will ALWAYS be surge/peak times, hot zones and sporting events.
If you're looking for this to supplement income, unless you drive at the proper times to maximize your time out, it can end up costing YOU more.
You Just Never Know: Uber and Lyft
You're sitting at home and a ride comes through. A picture of a young girl or guy pops up and the app tells you this person is 5 miles away. It doesn't tell you where exactly this person is until you accept to pick them up. Some questions you might be thinking:
- Who is this person?
- Where do they live?
- Where do they need to go?
- Do I have enough gas?
- Is it just them?
- Do they have pets?
- Do they need to go far?
All valid questions, and you won't get any answers until you agree to pick them up, drive to them and then the app will tell you where you're going. Could be around the corner, could be 30 minutes away or it could even be 2 hours away! The point is, you never know until you pick someone up. That can be a little unnerving for some.
In the end, both companies are offering the same opportunities and virtually the same rates of pay. Uber is the more popular company as most of the world heard about IT first. Recent problems with hiring practices and CEO's has put them in a bad spotlight so Lyft might edge out just a little. Lyft has been seen to be more “young and hip” while Uber is more “professional”. Either way, whichever you choose make sure you get all the details you need to make the right decision. Find those hot zones and surge times and go get some of that fast money.
Here at BudgetBoost we'd like to help you save money on your trips so here's the steps to get free gas.
Whether you are looking to make a little extra money for the holidays or a full-time job, or something in-between, Uber and Lyft are great options to consider.
In addition to earning cash, you can set your own schedule and work as little or as much as you like. Not too many companies offer this type of freedom with decent pay and benefits.
In some cities, you don’t even need your own car; you can rent a car from Uber or Lyft for a small fee. Some of the most commonly asked questions are answered below.
Begin the Application Process
To get started, you’ll need to know the basic requirements for an Uber driver. As you go through the application process, whether it is through the phone app or online, you’ll be prompted to provide some personal and vehicle information.
You will have to agree to a background and driving record check, but you will have a chance to explain any convictions or moving violations.
How can you start driving for Uber?
The first step is to download the app. Although you can apply online, you’ll need the app to begin driving anyway. You’ll complete the application, submit your documents, and find out if your car is eligible during the sign-up process. Then you’ll wait for them to check your background and driving record. Once that is completed, you can begin driving and earning money.
Should I drive for Uber?
Yes. If you don’t like it, you can easily remove yourself from the app. Driving for Uber is a great way to earn money whether you’re looking for full- or part-time work. Since you can make your own schedule, it’s a no-brainer.
How much money can you make driving for Uber?
Among all states in the U.S., Uber drivers make an average of $25 an hour after commission and sales tax. Keep in mind that the more hours you drive, the more money you will make. In most cases, if you reach a certain number of driving hours, you will also receive a bonus.
What is it like to drive for Uber?
Set your own hours and work as much as little as you’d like. You’ll meet all types of people from all walks of life. If you want Uber to be your only job, that is quite possible. Most drivers agree that the benefits greatly outweigh the occasional rude customer.
Is driving for Uber worth it?
Most Uber drivers give a resounding “Yes”. Although driving for Uber is what you make it, you can earn good money while making your own schedule and meeting new people. As long as you meet the basic age and vehicle requirements, you will always have a job.
How do I sign up to drive for Uber?
Signing up is easy, and you can do it via the app or online. Download the app or go to Uber.com to begin the process. You’ll submit your documents and then wait for them to complete your background and driving records.
Can you drive Uber at 20?
You have to be 21 years of age or older to become a driver for Uber. You can drive for Uber Eats when you are 19, so you may want to consider that option instead.
What are the requirements to drive for Uber?
You must be at least 21 years old and licensed to drive in the U.S. for at least 1 year (or 3 if you’re under the age of 23). The car you drive has to be a 4-door vehicle that is 10 years old (some cities allow 15) or newer and you’ll need proof of registration. Your license and plates must be issued by the state you wish to drive in, as well as the auto insurance policy with your name on it. You have to pass a background check and a driving record check.
Do you have to be 21 to drive Uber?
You do have to be 21 years of age or older to drive for Uber. In some states you may need to be 23 or older. Some of the food delivery services will let you drive for them if you are at least 19 or older.
How long does it take to start driving for Uber?
It typically takes about 3-5 days for the background and driving record check to be completed. In some areas it could take up to 7 days. You can be proactive during this time and scout some areas that will be good for picking up riders on a regular basis during the times you want to work.
What do I need to drive for Uber?
You’ll need the following documents to complete the sign-up process: driver’s license, proof of residency, and proof of insurance (if you plan on driving your own car). You can easily complete the entire process through the app by taking pictures of your documents.
Driving Records and Background Checks
Very few of us have spotless driving records. Riders want to know they are with a safe, experienced driver in a reliable vehicle. It’s important to understand the background and vehicle requirements before you begin driving for Uber or Lyft. Some requirements vary by state or region, but it’s relatively easy to figure out what you’ll need to begin earning money as a driver.
Is driving Uber safe for females?
Yes, driving for Uber is just as safe as any other customer service occupation. They have 24-hour emergency assistance and allow you to share your trips with others. If you are still concerned, you may want to look into Uber Eats, since they allow you to have a friend ride along with you.
Can you drive for Uber with a DUI?
If you have a DUI conviction within the past 7 years, then you will not be able to drive for Lyft or Uber. If you do not have a conviction you may still be able to drive for these companies, so it’s best to go ahead and apply to see if you are eligible.
Can you drive for Uber with a felony on your record?
In most cases, no, you cannot drive for Uber if you have a felony or any charge more severe than a misdemeanor. A violent crime or sexual offense will prevent you from being accepted as a driver.
Is driving for Uber safe?
Yes, there have rarely been reports of harm and or harassment from Uber drivers. Uber has multiple layers of safety established for its drivers: the app allows for 24-hour emergency assistance, and you can share all your rides with loved ones so they know where you are at all times.
How old can your car be to drive for Uber?
You’ll need a car that is less than 10 years old in most states; although some allow for cars 15 years old or less. The great thing about Uber is that you don’t have to drive your own car to earn money – you can rent a car, for a fee, but you’ll still be able to make money.
How far will I have to drive with Uber?
You’re free to choose which trips you’d like to accept through the app, but there are usually limits established by Uber. You probably won’t find a trip more than an hour or two, but 4 hours tends to be the maximum allowed.
Can I drive Uber in another state?
Most states required you to have an in-state license and registration, but some might give a 30-day grace period to switch over. When you sign up for Uber, you’ll be approved for certain areas and regions to drive in.
Can you drive Uber with a rental car?
You do have some options with Hertz to drive a rental car for Uber, but it’s way more expensive than renting a car directly from Uber. It’s best to avoid this option unless you have a particular circumstance or situation in which it is unavoidable.
Do you need special insurance to drive for Uber?
There’s no special insurance required to become a driver. All you need is your own car insurance to qualify to become a driver. While you are actively driving for Uber, they provide an additional level of liability insurance.
Can you drive for Uber with a manual car?
Yes, as long as the car meets all the other rules for eligible vehicles, you can drive a car with automatic or manual transmission. There are very few limitations for Uber vehicles.
Can I drive a corvette for Uber?
You could only drive a corvette if it has 4 doors and meets the other requirements for an Uber vehicle. If you need an alternative vehicle, you can rent on directly from Uber.
Find the Best Fit For You
There are some specialty services offered by Uber that you may want to consider, even if you don’t meet the eligibility requirements of an Uber driver, you still have options. Other services, like Uber BLACK, may allow you to increase your profits by doing the same amount of driving. You may also have unique circumstances you are wondering about. We’ve tried to address those below.
How to drive for Uber BLACK?
UberBLACK is specifically for luxury SUV’s with black exterior and interior that are 2010 or newer. The SUV must seat a minimum of 4 passengers. You’ll also need a commercial license and registration, and an airport permit. Preferred cars include Audi, BMW, and Mercedes-Benz.
How can you drive for Uber eats?
You must be 19 years of age or older with a 1998 or newer vehicle and a valid driver’s license, insurance, and proof of vehicle registration. Uber Eats drivers must have 1 year of driving experience, and the ability to lift up to 30 lbs.
Can you have a passenger while driving for Uber eats?
Yes, you can! In fact, most people find it to be efficient to have a passenger to do the running, and the driver doing the driving. Females may also feel a bit safer making deliveries with a friend.
How much do you make driving for Uber eats?
You can earn around $12 an hour driving for Uber eats after deducting vehicle expenses. It will vary day to day, and it will also increase if you work during lunch and/or dinner rush hours.
What is a self-driving Uber?
Uber has tested a limited number of self-driving cars to transport passengers. So far, self-driving cars have not had a lot of success. In fact, there have been accidents involving self-driving cars that have raised concerns regarding their use.
Can I drive Uber on a F1 visa?
Being employed as a driver for Uber would violate the status of an F1 visa in most cases. If you are granted an economic hardship and are allowed to pursue off-campus employment, it still may not be possible.
Can I drive Uber with H1b immigration status?
No, you can’t; driving for Uber would be considered a violation, because you are only permitted to work for your H1b employer. You would need a concurrent H1b specifically to drive for Uber in the U.S.
Can international students drive Uber?
Because of the F1 status of international students preventing you from being employed, you would not be legally allowed to work for Uber. You must file a tax return if you earn more than $600 annually.
Maximize Your Profits
As you begin your work as an Uber driver, there are things you can do to maximize your earning potential. Whether you work full-time or part-time, you’ll want to make the most of every hour you spend on the road.
When is the best time to drive for Uber?
The best time to drive are various rush hours, where there are a large number of riders. Catch people going to work or heading to the airport in the morning and the evening. Later in the day, you might get a rush of people going out for dinner or drinks. People who’ve had too many drinks will then need a ride home. It’s up to you to decide which crowd you feel most comfortable with.
How to make the most money driving for Uber?
Rush hours are the best time to find riders, but you’ll make the most money by finding the times where drivers are in high demand. Some drivers sell snacks and drinks to their riders to add to their earnings.
How many people drive for Uber?
Uber reports that around 750,000 drivers are active in the United States. Worldwide, there are around 2 million drivers. You can find out how many drivers are in your area by checking online.
Can you sell while driving Uber?
Uber does allow you to sell goods like snacks and drinks (but not limited to that) to your riders. This can be a great way to make some extra money during your trips.
Does Uber drive long distance?
There will be a limited area for an Uber trip, but in some cases, it can be up to 4 hours one way. This is not typical. The longest rides may be 1-2 hours, but no more than that.
Do Uber drivers drive in snow?
Yes, they do. Rates may be higher during periods of snow, so if you feel comfortable driving, it may be a great time to earn additional money. Also, more people may be looking for rides when it’s snowing. Make sure your tires are good enough for snow. If you need better ones then shop for cheap car tires online.
How much do you make driving for Uber part time?
The average hourly rate for Uber drivers is between 12 and 25 dollars per hour. Depending on how many hours you want to drive and the times you are available, you may make more or less per hour.
Is it worth driving for Uber full time?
It depends on your specific situation, but if you are unemployed or you make less than ten dollars an hour, it’s probably worth it to try driving full-time. You can always begin driving part-time to see how you like it and if it’s worth your time. Read more: How can I make extra money?
Can Uber drivers drive anywhere?
When you sign up to drive for Uber, you will be approved within a certain area or region, and you won’t be able to drive outside of that area while working. The longest ride is typically 1 or 2 hours, and in rare circumstances may be up to 4 hours away.
There are always special circumstances when it comes to driving for Uber or Lyft, and your application is considered on a case-by-case basis. You do have the opportunity to explain your situation during the sign-up process, but it’s important to be truthful with your answers. If you don’t qualify to be an Uber or Lyft driver, you may still have other similar options.
Can you drive for Uber with a suspended license?
Probably not. You need a valid license in order to drive for Uber. If you have a suspended license, your insurance may not be valid.
Can I drive Uber with my child?
You cannot bring your child along if you are driving for Uber. Having any non-paying passenger of any age can get you deactivated from the Uber app and you will no longer be allowed to drive for them.
Does driving for Uber affect insurance?
You will want to check your policy before you begin driving for Uber. Some policies may not cover you while you are getting paid to drive, but you’ll have the coverage Uber offers while you’re working.
Can I drive for Uber if I have a SR22?
In most states, your insurance will have to be associated to the car you are driving, so as long as your insurance covers your car it should be acceptable with SR-22 insurance.
Do you need TLC to drive Uber?
You will need a TLC (Taxi and Limo Commission) license to drive in certain areas, including New York City and Long Island. You can check with Uber or begin the application process to find out the specific requirements in your area.
Can I drive Uber with my parents’ car?
In most cases, the answer is yes, as long as your insurance is tied to their car. Some states may require your name be on the car registration as well.
When will Uber use self-driving cars?
Uber has launched a limited amount of self-driving cars in certain cities, but some challenges are yet to be solved when it comes to self-driving cars. There is no set date for the widespread use of self-driving cars.
Can you drive for Uber and collect unemployment?
In most states, you are required to report any income to the unemployment office, and this may reduce the amount of unemployment compensation you will receive. You’ll want to read your unemployment terms before you begin driving.
Can I hire someone to drive my car for Uber?
As long as that person meets the requirements to be an Uber driver and has insurance tied to your car, then you can hire them (or allow them) to drive your car.
Will Uber give you a car to drive?
Yes, they will. You will have to pay a fee, but Uber will rent, lease, or sell you a vehicle if you do not have your own. You can review your options when you sign up.
Lyft vs. Uber?
There is much debate as to which service is better when comparing Uber or Lyft, but the truth is, many drivers work for both Uber and Lyft. It’s best to begin with just one and then add on the other once you feel comfortable with your schedule and have identified the most profitable areas in your region.
Should I drive for Uber or Lyft?
Both services are similar; however, Uber drivers report making slightly more per hour than Lyft drivers on average. You may want to check out the services in your area to see which one is better for you, or you can try both.
Can you drive for Uber and Lyft?
Yes. You can drive for both companies and switch between apps throughout your day if you choose, or drive for Uber one day and Lyft the next. Signing up for both will allow you to maximize your earning potential, based on rates and bonuses each one offers.
How to make a living driving for Uber and Lyft?
Without a doubt, you can earn a living income working for Uber or Lyft. If you maximize your earnings during morning and evening rush hours and other busy high-demand times, you can make more than some professionals do, all while setting your own schedule and being your own boss.
Why drive for Lyft?
If you want to be your own boss and determine your own schedule, driving for Lyft is a great idea, especially if you’re having a hard time finding work elsewhere. It’s a great way to make some extra cash whether you are looking for full-time or part-time work.
Where to Begin
It’s easy to get the process started if you’re considering becoming a driver for Lyft, regardless of if you are looking for full-time or part time work from home jobs. As you navigate through the application process, Lyft is there every step of the way in case you have questions or concerns. If you are still not sure you qualify, it’s best to complete the application process to be sure.
Who is better to drive for Uber or Lyft?
Hourly rates are slightly higher for Uber drivers compared to drivers for Lyft. Both offer bonuses, and many drivers work for both services to maximize their profits. It also depends on your specific location and the hours you choose to work.
What are the requirements to drive for Lyft?
You must be 21 years of age, pass a DMV and a criminal background check, and have a current, valid license and insurance. You will obviously need to have a device that will support the Lyft app. A moving violation, DUI, or criminal record may prevent you from driving for Lyft. Additional requirements may apply based on the city and state you drive in.
How to drive for Lyft?
Download the app or apply online to begin the process. Signing up is easy, and you can upload your documents by computer or phone. You’ll have to wait for them to complete the background and driving record check before you can begin earning money as a driver.
How much can you make driving for Lyft?
It varies based on the hours you drive and your specific area, but most Lyft drivers make at least ten dollars an hour after vehicle expenses. It is possible to make even more per hour, you just have to find the right time and location.
Is driving for Lyft worth it?
If you need to make some extra money and you have your own car, driving for Lyft is worth it if you don’t mind transporting strangers from one point to another. Although you will get some wear and tear on your vehicle, you will still make a profit.
What do I need to drive for Lyft?
You will need to provide your license, proof of residency and proof of insurance to begin the application process. You can submit these documents online or via the app, so it’s a very simple process.
How long does it take to start driving for Lyft?
It takes anywhere between 3 and 7 days for Lyft to complete the background and driving record check. Once that is completed you can begin driving and earning money immediately.
What is it like to drive for Lyft?
You can set your own schedule and work as many or as little hours as you’d like. Depending on the hours you drive, you’ll encounter various types of people from all walks of life. With wages and tips, you can make a decent living if driving for Lyft.
Do you need a bank account to drive for Lyft?
Yes, you will need a checking account in order to get paid as a driver for Lyft. You will also have to complete tax forms to get paid.
It can be a car, truck, or SUV, but you will need a vehicle to transport your customers. It doesn’t necessarily have to be YOUR vehicle, though, because you may be able to use someone else’s car or rent a car from Lyft for a small fee. You will have to pass a vehicle inspection regardless of whose vehicle you will be driving.
How old can your car be to drive for Lyft?
It varies by city and region, but you’ll need a vehicle at least 2003 or newer. Some areas may require 2006 or 2008 or newer, but you can find out on the app when you apply.
What year car to drive Lyft?
It depends on the area you are approved to drive in, but you’ll need a 2003 or 2006 model or newer in order to drive your car for Lyft.
Can you drive a leased car with Lyft?
Yes, as long as your name is on the lease and you meet all the other driver requirements, then you can use a leased car to drive for Lyft. You may want to track your mileage though, because most leases allow for limited miles. You don’t want to incur any fees due to going over your allotted miles.
Can I rent a car and drive for Lyft?
You’re better off renting a card directly from Lyft, because they offer much better options compared to a standard rental car company. Lyft has multiple options for renting or leasing cars while still allowing you to earn money as a driver.
Can someone else drive my car for Lyft?
If they meet all requirements for becoming a Lyft driver, and their insurance is tied to your vehicle, then yes, someone else can drive your car as a Lyft driver.
Can you drive Lyft with a 2 door?
Both Lyft and Uber require you drive a vehicle with at least 4 doors. If you don’t have one, you can rent one from them, so having a 2-door vehicle won’t prevent you from being able to make money driving for Lyft.
Can you drive Lyft with a cracked windshield?
It might depend on the severity of the crack. You will have to pass a vehicle inspection prior to being hired as an official driver for Lyft. If the crack in your windshield does not pass inspection, you can always rent a car from Lyft and use it to drive for the service.
Do you need your own car to drive for Lyft?
No, you don’t need to own your car in order to earn money driving for Lyft. You don’t need to be on the car registration, either. As long as you have valid insurance and meet all other requirements, you can drive your car or rent a car from Lyft.
Can I drive for Lyft without a car?
Yes, you can. Lyft has multiple options for renting or leasing a vehicle with unlimited mileage allowed. You will have to pay a fee, but you’ll still make a profit by utilizing one of their rental programs.
What car do you need to drive for Lyft?
You will need a 4-door vehicle that is around 2006 or newer (vehicle age requirements vary by city). It can be a car, truck, or SUV, but it must not have any major body damage and the interior must be decent, too. There will be a vehicle inspection before you can drive for Lyft.
Can you drive a salvage car for Lyft?
You won’t be able to drive for Lyft if you have a salvage title, even if your car is in excellent condition. You can look into rental options if you’d still like to earn money as a Lyft driver.
Can you drive for Lyft with a dent?
You will have to go through a vehicle inspection, so it might depend how large the dent is. If that disqualifies you, you can look into renting a car from Lyft so you can still earn money driving for their service.
Insurance and License
Every insurance policy is different, and licensing requirements also tend to vary by state or region. You will have to review your specific policies so you are well-informed as you complete your application and become employed by Lyft.
Do you need a business license to drive for Lyft?
In most areas you don’t need any special license to earn money driving for Lyft. Some cities or regions may require a special license, but as you go through the sign-up process you will know what you need to drive in your area.
Will my insurance go up if I drive for Lyft?
It might depend on your insurance policy. In some states, you might need a commercial policy to drive for Lyft, but keep in mind that while you are on the clock, Lyft offers additional protection in case of an accident.
Do you need a TLC license to drive for Lyft?
In some areas, such as New York City or Long Island, you will need a TLC (Taxi and Limousine Commission) license in order to drive for Lyft or any other drive-for-hire service.
Does driving for Lyft increase insurance?
It won’t increase your insurance in most cases, because Lyft will provide additional coverage and protection while you are on-duty working for them. Your private insurance policy will cover you on your personal time, when you are not driving for Lyft.
Do I need special insurance to drive for Lyft?
You won’t need any type of special insurance, but you will need insurance tied to the vehicle you’re driving. You will also want to check your insurance policy for any drive-for-hire caveats.
Can you drive Lyft with insurance under another name?
The car you drive can be in someone else’s name, but your name will need to be on a valid insurance policy that is associated with the vehicle you are driving.
Can I drive Lyft before I have registration for my new car?
Not necessarily, as long as you have insurance associated to that car, then you should be able to drive for Lyft in that vehicle. It is possible that this varies by state, but in most cases, you should be able to drive without the registration.
If you are not sure that you will qualify to be a driver, it’s best to still go through the sign-up process. You may come to a dead-end, but you won’t know if you qualify unless you try. Lyft may also give you additional information regarding how to improve your record so that you will become eligible in the future.
Can you drive for Lyft with a DUI?
A criminal background check will be performed, and you must have a clean driving record. You will not qualify will any trace of a DUI within the last 7 years.
Can I drive Lyft in another state?
When you sign up to drive for Lyft, you will be assigned a driving region. This could include different states based on your area. As you go through the sign-up process, you’ll see what options you have for driving regions.
Can someone else ride with me while driving for Lyft?
No, you can’t have a friend or other non-paying passenger ride along with you while driving for Lyft. If you are concerned by being alone, you can share your trips with family and friends so they can track your whereabouts.
Can you drive Lyft with out of state license?
The answer depends on your region. If you live in an area close to state borders, it’s possible you can drive in another state. During the sign-up process, you’ll see what areas and locations you are permitted to drive for Lyft in.
Can you drive Lyft with temporary tags?
As long as your temporary tags are not expired, you should be permitted to drive for Lyft with those tags. Once they expire, you will need to get permanent tags to continue driving for Lyft.
Can I drive for Lyft with someone else's car?
You can if you meet the requirements for a Lyft driver and if your insurance is associated with the car you will be driving. You may need to be listed on the car registration as well depending on the regulations in your state.
Can you have a felony and drive for Lyft?
You’ll be disqualified as a Lyft driver if you have a felony, a violent crime, or a sexual offense on your criminal record. Anything more than a misdemeanor will prevent you from driving for Lyft.
Can sex offenders drive for Lyft?
No, in most cases having a sexual or violent offense on your criminal record will prevent you from being hired as a driver for Lyft. You can apply to see if your criminal record is acceptable or not.
Can I drive for Lyft with a speeding ticket?
If you’ve had more than 3 speeding tickets in the past 3 years, then you may be disqualified from being a Lyft driver. Moving violations and accidents will also count toward this number and could prevent you from driving for Lyft.
How to drive for Lyft under age 21?
You must be 21 years of age or older to drive for Lyft, and the minimum age is 23 in some states. If you are at least 19, you can drive for food delivery services like Uber Eats. It is possible that you may not be eligible to become a Lyft driver, but don’t let that bring you down. Uber Eats and Doordash and other food delivery services have less stringent eligibility requirements than the straight driving services, so you may want to consider those options if you have your own car.
Can I drive Lyft without an SSN?
No, you need a social security number so Lyft can complete a criminal background and driving record check. Your SSN is how Lyft verifies you have legal work status in the U.S.
Can you drive Lyft while on disability?
You may be able to, but it depends on the terms of your disability agreement. There may be a limit to how many hours or how much income you can earn. If you are allowed to do a limited amount of work, then you can apply to drive for Lyft.
Can H1b students drive Lyft?
No, with an H1b status you’re typically prohibited from seeking employment outside of campus. Even if you have an economic hardship that allows you to seek outside employment, you still may not be able to drive for Lyft.
Maximize Your Earning Potential
The more hours you drive, the more money you earn as a Lyft driver. There may be a learning curve at the beginning, but once you figure out the best times and locations to drive in, you’ll easily be able to meet your financial goals, whatever they may be. It’s a good idea to try different times and locations at first, so you can find the one(s) that work best for you.
How much can I make driving for Lyft part time?
If you can arrange to drive during at least one of the peak times, you can earn anywhere between 10 and 20 dollars an hour or more driving for Lyft, even if it’s just part-time.
When is the best time to drive for Lyft?
There are multiple windows of time that tend to be the best for Lyft drivers. During the week, the morning and evening rush hours through dinnertime will be the best time. On weekends, late afternoon and evening through the early morning hours are the best times to drive.
How much can you make driving for Lyft full time?
You can make 25 dollars an hour or more working for Lyft if you drive during peak and high-demand hours. The more you drive, the more you can make.
Can I drive for Lyft in different cities?
In most cases, yes, you can drive for Lyft in different cities; however, it does depend on the specific city and state. For example, to drive for Lyft in Washington, D.C. and Arlington, VA, you may need to meet additional requirements. You can check the Lyft website for your state to see what the requirements are for different cities.
How to quit driving for Lyft?
All you need to do to quit driving for Lyft is to delete or deactivate your account. They will ask you to provide the reason you are leaving, and that’s pretty much it.
What is Lyft express drive?
Lyft Express Drive is a program that allows you to rent a car with unlimited miles allowed so you can still earn money driving for Lyft even if you do not have your own car.
How to drive Lyft premier?
Lyft Premier requires you to drive a luxury sedan or SUV that is 2010 or newer and seats at least 4 passengers comfortably. Lyft Premier is only available in select cities, but you can see all Lyft options when you sign up.
Can Lyft go through a drive thru?
It’s up to the driver to decide if they want to take the rider through a drive-thru. Drivers only make money per mile, so they’re losing money by doing this, particularly during busy hours.
Drivers and riders alike want to know they are safe at all times. Both can track rides and allow family and friends to track rides as well, which is just another layer of security Lyft offers in addition to a one-touch emergency assistance button within the app. As a driver, you get to choose which ride requests you feel comfortable with, and you can end the drive at any time.
Is driving for Lyft dangerous?
Driving for Lyft isn’t any more dangerous than similar occupations. You always have assistance in case of emergency, and you can let friends or family track your routes. You can choose which riders you wish to drive, so you have control over your passengers.
Is it safe to drive for Lyft?
Only rarely do Lyft drivers experience safety concerns, and the service does everything they can to ensure their drivers are safe. The Lyft app has a built-in emergency button that allows you to dial 911 at any time if you feel unsafe. Statistically, the greatest danger is getting into an accident or begin distracted while driving.
What is a clean driving record for Lyft?
In most cases, you can’t have more than 3 traffic violations in the last three years on your driving record to qualify as a Lyft driver. There is no cost to sign-up as a driver, so you can always apply and see if they accept your driving record.
Does Lyft check your driving record?
Yes, they will check your driving record and perform a criminal background check before they allow you to access to customers. Even if you don’t have a spotless driving record, you could still be eligible to become a driver for Lyft.