How long does it take to become a lyft driver

Uber is an increasingly popular ride referral service that enables smartphone users to request a ride from a fleet of dedicated drivers. With over 40 million active monthly riders, Uber has become a genuine alternative to traditional taxi services (leading thousands of taxi drivers around the world to engage in a great deal of activism to try to stop it).

Uber’s riders request over five million rides per day worldwide. Their needs are being met by over 160,000 Uber drivers in over 300 cities in the United States plus over a million more Uber drivers in 75 other countries. Fifty thousand new drivers sign up with Uber every month to meet the increasing demand for rides. If you’ve ever thought that you might like to drive for a living, here is everything that you need to know about how you can become an Uber driver.

The reasons that millions of riders have switched from taxis to Uber include the following.

As long as you can pass Uber’s background check, you shouldn’t find it difficult to become an Uber driver (unless your city imposes some difficult requirements of its own).

Install the Uber app on your smartphone and create an account on Uber, including the bank account into which your earnings will be paid.

When you’re ready to start picking up passengers, tell the Uber app that you’re going online. Then wait.

Before long, the app will notify you about a passenger requesting a ride and show you a map with the passenger’s GPS coordinates. You pick up the passenger and take the person to his or her destination. Aware that the passenger can rate you afterward, you do your best to make the passenger feel welcome, comfortable, and satisfied.

You just keep repeating this process, being notified about passengers and taking them to their destinations, until you’re done for the day. Then you tell the Uber app that you’re going offline. You can rate your passengers on their behavior.

Uber will deposit the money that you’ve earned into your bank account.

To become a successful Uber driver, there are several issues you need to deal with.

Let’s look at each of these issues in turn.

1. Do You Meet the Requirements?

   Requirements for Uber Drivers

   • You must be 21 years of age or older.
   • You must have at least one year of driving experience (three years if you’re under 23).
   • You must have a valid driver’s license.
   • You must have valid auto insurance that meets certain liability requirements.
   • You must be able to provide proof of insurance and car registration.
   • You must have a car that meets Uber requirements.
   • You must meet all the other state, local, or Uber requirements, which can be found on the Uber website.
   • You can pass a background and criminal check.

   Before you can start to become an Uber driver, you must make sure that both you and your vehicle meet the various requirements. This is especially important if you are investing in a new vehicle to become an Uber driver; make sure that your vehicle meets the requirements for the type of Uber service you plan to provide. (We’ll discuss Uber services later on.)

   To qualify as an Uber driver, you must be at least 21 years of age and have at least one year of driving experience. (If you’re under 23, you must have at least three years of driving experience.) You must have a valid driver’s license and valid insurance. You must also pass a background and criminal check before you may drive for Uber.

   Insurance. Your personal auto insurance policy may not cover you while you are working commercially as an Uber driver, so make sure you have proper coverage. Uber has liability insurance to cover you while you are working as an Uber driver, but it may not be enough coverage. Uber offers $1 million in liability coverage for picking up a rider or driving one. However, for the times during which you’re waiting for a passenger to request you, their liability coverage is just $100,000 per accident and they offer no collision coverage. (If you’re involved in an accident in which you are found at fault, your medical liability can easily top $100,000 plus collision damage.) Check with your insurer about how much additional coverage you need. Recognizing the growing popularity of ridesharing through Uber and other companies, some auto insurers now offer rideshare insurance that you can add to your existing personal auto insurance policy for an additional premium. Here is more about the insurance issues that might arise:

   Local Requirements. In addition to meeting the general requirements of age, experience, driver’s license possession, and insurance coverage, you must also meet any additional requirements imposed by the local government or local Uber management. For example, to be an Uber driver in New York City, you must obtain a Taxi and Limousine Commission (TLC) driver license. To qualify for a TLC license, you must complete a 24-hour For-Hire Vehicle (FHV) course and undergo a fingerprint-enabled criminal background check, a driving record check, and drug testing. Also, you must have TLC plates on your vehicle.

2. What Type of Uber Service Will You Provide?

   There are five common types of Uber services, each based on a particular style of vehicle: UberX, UberXL, UberSELECT, UberBLACK, and UberSUV. You need to decide which type of service you want to provide. Typically, the higher-end Uber services charge the highest rates. Let’s look at the general requirements for vehicles for each type of Uber service. (Note: Uber’s actual vehicle requirements vary from one city to another. Check with Uber for the specific vehicle requirements for your city.)

   UberX is the lowest-cost Uber ride, so its vehicle requirements are the simplest to meet. To qualify for UberX, your vehicle must be a 2002 or newer four-door sedan in good condition that can seat at least four passengers plus yourself as the driver. (For example, a Chevrolet Cobalt can qualify.)

   UberXL is also relatively low-cost but provides passengers with more room than they would get with UberX. To qualify for UberXL, your vehicle must be a 2002 or newer SUV or minivan with no cosmetic damage that can seat at least six passengers plus the driver. (For example, a Ford Explorer can qualify.)

   UberSELECT (known in some cities as UberPlus) is a more expensive option for upscale rides. For UberSELECT, your vehicle must be a 2009 or newer entry-level luxury car with a leather interior and no cosmetic damage that can seat at least four passengers plus the driver. (For example, an Acura can qualify.)

   UberBLACK is the luxury alternative to UberX. For UberBLACK, your vehicle must be a 2012 or newer luxury car in excellent condition with a black (of course) interior and exterior. (For example, a BMW 5-series sedan can qualify.)

   UberSUV is the luxury alternative to UberXL. For UberSUV, your vehicle must be a 2012 or newer luxury SUV in excellent condition with a black interior and exterior that can seat six passengers plus the driver. (For example, a Lincoln Navigator can qualify.)

   Finally, some cities also offer UberLUX driving. This is Uber’s ultimate luxury ride, which requires a 2012 or newer top-of-the-line vehicle in excellent condition. (For example, a Tesla Model S can qualify.)

3. How Can You Get the Right Car?

   What if you don’t already have a vehicle that can meet the requirements for the Uber service you’d like to provide? You shouldn’t spend a tremendous amount of money to obtain a vehicle solely in hopes of becoming a highly successful Uber driver. But if you’ve been thinking about getting a new vehicle anyway, consider getting one that can also meet Uber’s vehicle requirements.

   The most obvious option is to just buy the vehicle outright. Uber offers discounts at local auto dealers. It even offers its own financing for drivers even if their poor credit has kept them from getting financing elsewhere. (As you might expect, Uber’s interest rates for poor credit risks are naturally higher.) However, what if you don’t want to commit to becoming an Uber driver just yet? In that case, consider renting or leasing a vehicle that can meet Uber’s requirements. Try working as an Uber driver for a while and see how well you do before you commit to purchasing a dedicated vehicle. Uber has partnered with the Hertz rental car company to help aspiring Uber drivers rent cars at special rates temporarily. Another rental option is HyreCar, a peer-to-peer rental car company that caters explicitly to ridesharing drivers from Uber and similar companies. You rent a car from some other driver that doesn’t currently need it. And when you’re not working as an Uber driver, you can rent your car to some other driver that does need it. The following video discusses the most appropriate cars for Uber.

4. What Are the Best Hours?

   Many Uber drivers try to work a certain number of the peak hours in their city. The term “peak hours” refers to the times during which the greatest number of riders are using Uber’s apps to request rides. Typical peak hours are as follows:

   • Morning rush hours: 7 a.m. – 9 a.m. Monday through Friday
   • Evening rush hours: 4 p.m. – 7 p.m. Monday through Friday
   • Friday evening: 8 p.m. Friday – 3 a.m. Saturday
   • Saturday evening: 8 p.m. Saturday – 3 a.m. Sunday

   Not only are there more people seeking Uber rides during these times, but the higher demand for rides also bids up the average price per ride (called dynamic pricing), making it doubly advantageous for Uber drivers to work during these hours.

   In your city, the peak hours may occur at slightly different times. You may also decide to do more specialized runs, such as from the airport to your city’s hotel district, which may have peak hours of its own. To determine the precise peak hours in your city before you become an Uber driver, you can search online, read message boards about Uber driving in your city, or talk to established Uber drivers locally.

   If you’re willing to work on Saturday nights, you can earn considerably more

5. How Much Can You Earn as an Uber Driver?

   • The average Uber driver earns $15.60 per hour.
   • This depends on driving during peak hours.
   • It also depends on the city (the more you know, the higher your pay).
   • The average San Diego driver earns $12.60 per hour; the average New York City driver earns $29.34.
   • Learn about possible expenses before you start driving.
   • Expenses can amount to 20–30% of your earnings, so keep track of them!
   • You are responsible for paying income taxes and the self-employment tax.
   • However, most expenses should be tax-deductible.

   How much you can earn as an Uber driver largely depends on the city in which you work and the hours during which you work. It’s usually recommended that you work during as many peak hours as possible.

   To begin with, Uber takes a 25% commission on every fare that you pick up. Your earnings come from the remainder. A study of 1,150 Uber and Lyft drivers found that the average Uber driver earns $15.60 per hour before expenses.

   There are online calculators that can help you estimate your earnings depending on the state you live in (Hudlr)

   Maintenance and fuel expenses can amount to 20–30% of your income. Internal Uber figures have shown that when these expenses were subtracted from their pay, drivers in Detroit earned only $8.77 per hour, those in Houston earned $10.75, and those in Denver earned $13.17. This means that starting in 2018, drivers in Detroit will earn less than the Michigan minimum wage. However, the median Uber driver earns less than the average Uber driver does. This means that there must be many Uber drivers who are earning a decent living to make the average so much higher than the median.

   Still, these figures represent net income before taxes. As a self-employed contractor, you’ll also be responsible for paying your own income tax at all levels: federal, state (if any), and local (if any). An Uber driver earning about $25,000 this year will fall into the 15% federal income tax bracket.

   You’ll also be responsible for paying a self-employment tax to cover Social Security and Medicare taxes. The self-employment tax rate for 2017 is 12.4% for the Social Security tax plus 2.9% for the Medicare tax. As you can see, the total tax burden can be significant.

   Keep in mind that you must pay self-employment tax if your yearly earnings from Uber are $400 or more

   On the other hand, because you’ll be using your car for business reasons, you’ll be able to deduct many car-related expenses from your income tax: Fuel, car repairs, car washes and auto detailing, auto insurance premiums, interest on your auto loan if any, and depreciation of the car. You’ll also be entitled to a mileage deduction for every mile driven for business reasons. Every mile, including the mileage you accumulate just by driving to pick up an Uber passenger and driving away after you’ve dropped the passenger off at his or her destination. You’ll also be able to deduct the fraction of your smartphone expenses that involves Uber driving.

   You may also have other tax deductions such as the Uber commissions, the cost of any background checks you must pass to become an Uber driver, and even the premiums on your health insurance policies.

So far, we’ve looked at how to become an Uber driver and how to get your first riders. But how can you become truly successful at this job? Let’s see.