“Uber” is one of those words that has evolved into a descriptor of an entire industry, rather than just one company in the industry. Upon arriving at a gathering, for instance, it’s common for people to say, “I took an Uber,” even if they used a different app like Lyft, Turo, or Zipcar. Indeed, Uber is the biggest name in rideshare, and it has a strong foothold in food delivery, too. It’s the company with the most drivers (8 million globally), and it operates in 83 countries and at least 853 cities. You could say that Uber … gets around.
Depending on your point of view, the fact that Uber is so huge might make you either more inclined, or less interested, in driving for this huge company. Only you know what a good fit would be for you. So, in this article, we’re going to go through the pros and cons of being an Uber driver so you can make an informed decision. We’ll cover:
- What Uber does
- What an Uber driver’s shift is like
- A few words about Uber Eats
- What you need to qualify as a driver
- How to apply to be a driver
- One more thing
What Uber Does
According to its corporate statements, Uber is a technology company that, through its app, offers the opportunity for drivers and riders to connect. Uber allows drivers to work with just rideshare, meaning only taking passengers from their pickup points to their destinations, and also offers other services. For instance, drivers for Uber are automatically qualified to take requests through Uber Eats, which is a service that delivers prepared food.
Uber is a gigantic company. Without going into too much detail here, we’ll add that in addition to rideshare and Uber Eats, Uber has package delivery systems, Uber helicopters in select cities, and even self-driving (autonomous) vehicles. This is definitely a company that thinks even bigger than it already is. And Uber’s recent acquisition of Postmates is further evidence that it’s a major force in the gig economy.
So, what’s it like to drive for the biggest gig driving company out there?
What an Uber driver’s shift is like
Driving for Uber is fairly straightforward. You open the app, and wait for a passenger to request a ride. A map will pop up to show you where the passenger is. You can either use Uber’s navigation system, or set your app to go to another (most likely better) one, such as Waze or Google Maps. Once you arrive at the pick-up location, you’ll find out where your passenger is going. Again, the app will help you navigate to the destination. Once the passenger is dropped off, you’re done. With luck, you’ll even get a tip.
It’s common for you to get a request while you are driving with another passenger. You can accept the ride, but always be careful about using your phone while driving. Most drivers have their phones mounted, either on the dashboard or windshield, to make it easier to manage them while they’re on a shift. Check your state laws to see what types of mounting are legal. You never want to obstruct your view.
Rides are worth more money at certain times of day and in certain parts of town. Uber has what are known as “surges.” During those times, when there are more riders than there are drivers, or when there’s a major event going on, prices will go up and you’ll get paid more.
There are also other bonuses, like goal-setting promotions known as Quests. These are times when you get extra money for completing a certain number of rides, either Monday through Thursday, or Friday through Sunday. You can also earn extra through consecutive rides promotions. At a busy time, for example, you might get $3, $7, or $9 extra for taking three rides in a row.
The amount of money you see as your earnings is only a portion of what Uber charges the passengers. Uber has what is known as a “take rate,” and it is aptly named. That’s the percentage the company retains from the full fee for bringing you and your customers together, plus everything it takes to make that happen.
As an Uber driver, your hours are totally flexible. No one tells you what time you have to be at work, or how long of a shift you have to put in. The only one you have to report to in this regard is … you. That’s great, as long as you’re disciplined about getting out to work, and staying there long enough to make the amount of money you want and/or need.
Once you’re done with a shift, you shut down the app and your earnings will be posted to your account. Your ability to manage yourself, and of course, the level of demand for drivers in your area, will determine how much you earn.
Uber will automatically deposit your earnings in your bank account once per week. If you need the money sooner, you can cash out immediately for a minimal charge (about fifty cents).
How much you’ll make as an Uber driver varies by location, season, time of day, available bonuses, and other factors. In general, Uber drivers make anywhere between $13 and $20 per hour. Earnings can be less, and even more, especially when promotions and surges are taken into account.
Keep in mind that when we talk about earnings, it doesn’t include tips, promotions, or bonuses. In addition, it doesn’t take into account the costs involved with doing business.
As an Uber driver, you’re an independent contractor. This means you’re responsible for withholding money for taxes, as well as expenses such as fuel, depreciation, and maintenance. You’ll also have to purchase your own health and disability insurance.
When you’re planning your shifts for the week, think about how much you need to make in order to satisfy your income requirements, taking all these expenses into consideration. While these expenses are considerable, they’re also legitimate tax deductions, so there’s something to be gained at tax time.
A few words about Uber Eats
We mentioned earlier that Uber drivers have the option of being Uber Eats delivery drivers. A setting in the app allows you to accept Uber Eats requests. Uber Eats driving entails taking a call from a customer, picking up the food at a restaurant or other establishment, and delivering it to the hungry person on the other end of the request.
While Uber Eats doesn’t always pay as much as rideshare driving for Uber, it can be a worthwhile way to make money when rider requests are hard to come by, or when you simply feel like dealing with food rather than people. The beauty of working for Uber is you can do either or both, as long as you qualify to be a rideshare driver. (Uber Eats drivers don’t always qualify for rideshare.) Let’s look at the requirements for driving now.
What you need to qualify as a driver
Here are the criteria for becoming an Uber rideshare driver.
Requirements for you:
- Be the minimum age required to drive in your city
- Have at least one year of licensed driving experience in the U.S., or three years of licensed driving experience is you’re under 23 years old
- Pass a background check
- Have a valid U.S. driver’s license
- Present proof of residency in the state where you plan to drive
- Have proof of auto insurance, if you choose to use your own vehicle
- Have a smartphone capable of handling the Uber app (iOS 8 or higher, Android 4.0 or higher)
Requirements for your vehicle:
- Must have four doors, and able to transport a minimum of four passengers
- Can be a car, truck, SUV, or minivan
- Vehicle must be 10 to 15 years old or newer (check your city for exact requirements)
Additional vehicle requirements (can vary by city)
- Five factory-installed seats and seat belts
- Working windows and air conditioning
- No vans, box trucks, or similar vehicles
- Cannot have any cosmetic damage, missing pieces, commercial branding, or taxi paint jobs
- No salvaged or rebuilt vehicles
- No aftermarket seating modifications, such as installed seats, seat belts, or BedRyder systems
These requirements apply mainly to UberX, which is the basic Uber service. There are higher levels of Uber services, such as Uber XL, Uber Premium, Uber Comfort, and Uber Premier. You can learn more about those levels of service here. In most cases, your vehicle will have to meet even higher standards.
For Uber Eats the requirements will be slightly different, depending on your city. If you’re in a designated area, you may be able to make Uber Eats delivery by bicycle or scooter.
If you don’t want to use your own vehicle (for rideshare or Eats), you may be able to rent a vehicle through Uber. Even though you can’t drive for Uber with a car you rent on your own behalf, they will rent or lease vehicles that meet their requirements, usually through a car rental company that has an agreement with Uber. Vehicle programs vary from one city to the next.
Check the Uber website for details about your location. You’ll get this opportunity if and when you apply to be a driver. Check on “I need a car,” and you will be sent to the appropriate web page.
Before you apply to be an Uber driver, there are a few more details you’ll want to investigate. One of them is the background check. This blog post tells you all about it, including how long it will take, and what you can do if it takes longer than you expect.
Insurance is the other item that drivers need to attend to. Uber will provide some level of protection for you, but you’re also required to have your own policy on your car. Furthermore, you need to let your insurance company know that you’re working as a rideshare driver, and pay an extra amount for a commercial rider. Don’t try to sidestep this; the risk isn’t worth it. If you don’t tell the company that you’re driving for Uber, and you have an accident, they have the right to waive your policy—which could have disastrous results. Read more about insurance in this Gridwise blog post.
How to apply to be a driver
Although the process isn’t complicated, it does take some effort. You’ll need to be at least somewhat savvy with your smartphone. Assuming that you are, the first step is to download the Uber driver app, which you’ll find in the app store on your phone.
Once you do that, you’ll need to gather the following documents:
- Driver’s license
- Vehicle registration (temporary is acceptable)
- Proof of Insurance
- Picture of you
- Permission and information for the background check
You’ll provide the documents (including your photograph) to Uber by taking screenshots and uploading them to the app. Follow the system prompts to input the background check information.
Once you apply, it can take a day or two for all the documents to be approved, and in many cases, additional time for the background check to clear. Remember, they are checking your criminal record and your driving record. If you want to read more about Uber’s background check, here’s a previous Gridwise article about it.
Once all the documents and the picture are approved, and the background check clears, you’ll be ready to roll!
One more thing
As you may already know, Uber and Uber Eats drivers aren’t employees; rather, they’re independent contractors. If you want to read more about a battle over this designation that’s going on in California, here’s a Gridwise blog post about it.
As an independent contractor, you are responsible for most benefits that an employer would usually provide if you were an employee. These include:
- Health insurance
- Workers compensation insurance
- Disability insurance
- Minimum wage protection (except in a few cities)
- Paid time off (vacation, sick days, and holidays)
- Pension plan
- Tax withholding
There’s an ongoing struggle between the gig economy companies and government jurisdictions in the many locations where the companies operate. Government officials in some of these areas, along with many gig workers, would like to see drivers be classified as employees. It’s a huge controversy, and both sides of the argument have good points to make. This article will help you get a grasp of what’s going on, and give you enough information to decide how you feel about the issue.
Don’t go it alone
Whether you decide to drive with Uber, or decide to go with another rideshare or delivery company, the one thing that will consistently be a big help is Gridwise. You can track your earnings on all the platforms you use, and keep a record of your total mileage so you know how much to deduct at tax time.
The information is presented in easy-to-read, graphic format like this:
And that’s not all. On the Perks tab you’ll find deals and discounts for drivers, easy access to the blog, and news from the Gridwise YouTube channel. You won’t want to leave home without this amazing app, so download it now!
To get a flavor for the Gridwise community, join us on Facebook, where the great Gridwise gas card giveaways are going on all the time. Finally, if you have questions or ideas about this article or the gig economy in general, leave us your comments below, and get a great community convo started.
