Our current economic system is consistent with “sharing,” in which individuals pool their resources to buy and sell products and services to one another. This encompasses financial resources, information, style, job market, and even mobility means. The latter is generally known by one of its key companies, Uber Technologies, and is sometimes known as ridesharing.
Uber estimates that its 3.9 million drivers in 63 countries make 14 million journeys daily. However, other projections put the number of drivers at 5 million by 2020 and the number of daily trips at 18.7 million.
Some people become drivers to supplement their income, while others do it professionally. You may have given it some thought and are considering joining. Learn the essentials for making it as a professional driver below.
Having a car and a smartphone will get you started in the ridesharing business, where you can pick up paying customers. That’s not all!
Please read on to discover the requirements for how to become an Uber driver, as well as other helpful information, like how much money you may make and how your earnings would be taxed.
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Table of contents
- Minimum Requirements to Become an Uber Driver
- Steps on How to Become an Uber Driver
- What Kind of Insurance Do I Need for Uber?
- What Kind of Car Do I Need to Join Uber?
- How Much Money Will You Make When You Become an Uber Driver?
- How Do Uber Drivers Pay Taxes?
- What Costs Does Uber Cover?
- Frequently Asked Questions on How To Become an Uber Driver
- Reference
Minimum Requirements to Become an Uber Driver
It would be best if you began applying to Uber’s website before devoting too much time and energy to the process. In the United States, drivers must meet the standards outlined below.
Keep in mind that some U.S. cities and states may have different requirements than others and that this is true internationally and domestically.
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Minimum Requirements
To become an Uber driver, you must satisfy the following criteria:
- You must meet the minimum age to drive in your city
- You must have at least one year of licensed driving experience in the U.S.—or three years if you are under the age of 23
- You must have a valid U.S. driver’s license
- You must use an eligible four-door vehicle
Regional distinctions exist about vehicle specifications. When you apply for a position with Uber, the company will let you know whether there are any special requirements for your area.
Documents You Will Need
You will need to share the following documents with Uber:
- A valid U.S. driver’s license
- Proof of residency in your city, state, or province
- Proof of auto insurance and car registration
- Driver profile photo, which must be in passport format and cannot be your driver’s license photo
Commercial auto insurance is needed to work for a vehicle rental firm in many areas, including New York City.
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Information for Driver Screening
Uber will do a background check and driving record evaluation via an online application. Uber needs your SSN for screening and tax reasons.
You may need more documentation to prove your driving history if you’ve just relocated to a new state. Keep your driver’s license and proof of insurance from your previous state handy.
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Steps on How to Become an Uber Driver
Step 1
Apply to be an Uber driver by filling out the online form or using the mobile app and providing the paperwork. Get in touch with Uber at (855) UBER-HELP or drop by your neighborhood Uber office if you’re experiencing problems.
Step 2
Accept a background check and wait up to 10 days for a response.
Step 3
Turn on the Uber app’s driver mode once you are approved to become a driver. At this point, you are free to take rides and begin earning tips.
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What Kind of Insurance Do I Need for Uber?
State laws vary on what minimum levels of coverage are necessary for auto insurance. You are covered when actively serving clients and logging onto the Uber app. The driver app will not access your insurance information when you’re not active on the service.
Insurance provided by Uber in the event of a covered accident while you are active and waiting for a driver request includes “third-party responsibility if your motor insurance does not apply.”
What it covers are:
- $50,000 in bodily injury per person
- $100,000 in bodily injury per accident
- $25,000 in property damage per accident
What Kind of Car Do I Need to Join Uber?
After signing up to drive for Uber, they will tell you of any applicable local car rules. A car must be only 15 years old in some cities. You might need a newer car if you live in a busy city.
In addition, it must be a four-door car with seating for at least four people (excluding the driver), be in decent condition, have no commercial branding, and not have a salvaged, reconstructed, or rebuilt title.
Before driving paying customers about town, you should have your car examined to be sure it is in good working order. Once a year, or every 50,000 kilometers, customers are encouraged to visit an Uber facility for a free inspection.
Additional vehicle specifications are necessary for the UberXL and Uber Black service levels. If you want to be an UberXL driver, your car must have seating for six or more passengers, and if you want to be an Uber Black driver, your car must be a particular age and belong to the luxury class.
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Consider purchasing a second-hand automobile that fulfills Uber’s standards if you do not already own one. Think about the mileage and wear and tear that may occur if you buy a brand-new car specifically for your Uber job. Buying a second-hand car might be more cost-effective, depending on how often you anticipate using Uber and your other rideshare options.
Before signing a contract, consider automobile leasing, but be aware of any mileage restrictions. In addition, Uber has worked with rental and leasing providers to provide special pricing and benefits to its drivers.
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How Much Money Will You Make When You Become an Uber Driver?
Depending on the area of the country in which they operate, drivers can make anywhere from $5 to $26 per hour before paying for things like petrol, taxes, and upkeep. Uber also occasionally provides financial incentives to attract new drivers. It’s common practice, for instance, to offer signup bonuses of up to $500 to prospective Lyft drivers.
While driving for Uber, you may increase your earnings in different ways, such as:
- You’re saving money on gas since you’re driving a hybrid.
- When you’re behind the wheel during a surge, you’re taking advantage of the premium rate that Uber charges its customers when there’s a shortage of drivers in a densely populated region or at a popular time.
- Utilizing the Uber Eats app for meal delivery.
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How Do Uber Drivers Pay Taxes?
Since Uber drivers are considered independent contractors, they must pay taxes out of their pocket. The firm gives every driver a tax summary and, if you’ve earned enough, a 1099 form at the end of the year to complete with your annual tax return.
You can write off job-related expenditures, such as mileage, gas, and more, so maintain a detailed account of them.
You should see a CPA to learn more about the deductions available to you.
Some states are proposing legislation that sets minimum salaries for independent contractors and access to benefits such as workers’ compensation, unemployment, and health insurance. Depending on how workers are categorized, such legislation may affect taxation.
Check the websites of your state and municipal governments to learn the rules that apply to you.
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What Costs Does Uber Cover?
As a contractor, you’ll have to pay for your vehicle’s petrol, repairs, and upkeep. However, the employer will reimburse you for some charges.
If an Uber passenger does any damage to the inside or outside of the driver’s car, for instance, the rider will pay a fine. This covers incidents where passengers make messes or throw up in the cars of Uber drivers. Uber calculates the total cost of cleaning and passes that cost to the customer. the driver receives the entire sum after that.
The company covers tolls paid by drivers on Uber journeys. When riders go through a toll plaza, they will pay an additional amount to cover the toll. Receipts and statements are transparent to passengers and drivers, detailing the split.
Advice on How to Become an Uber Driver
If you’re between jobs or struggling to make ends meet, becoming an Uber driver might be the solution. Whatever your motivation for joining up, it’s wise to take the company’s advice into account:
- Familiarize yourself with the app. The software provides a platform for drivers and passengers to interact, as well as a variety of tools to facilitate ridesharing.
- Get to know your area. If you are visiting a strange city or traveling through an unfamiliar location, this will prove to be an invaluable resource.
- Learn to manage your time. You can earn more money if you are available to drive during peak hours, but you still get to choose when you work. Typically, peak times of day include the early mornings and late afternoons.
- Go above and beyond. Maintain a clean car. Maintain a positive demeanor and talk to cyclists who approach you. A five-star review is within reach, with only a few straightforward measures taken.
- Accessorize. Have a spare phone charger on hand. You can keep both hands on the wheel and your phone by attaching it.
Getting a dashboard camera is another handy suggestion. If you ever need to make a claim or submit a complaint about an event, you’ll have proof, thanks to this gadget.
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Frequently Asked Questions on How To Become an Uber Driver
If you wish to join up as an Uber driver, you’ll need to meet a few minimum standards. You need at least the legal driving age in your area and have at least a year of driving experience (or three years if you’re younger than 23). You’ll need a driver’s license and a 4-door car to qualify. The signup process also necessitates a profile picture, confirmation of domicile, proof of insurance, and registration.
Hourly charges change based on the city you’re in and the level of demand at any particular time. According to a survey by Gridwise, drivers in New York City earn the most per hour, while those in El Paso, Texas, make the least.
A driver’s service fee is the amount by which the rider’s payment falls short of the driver’s take-home pay after deducting standard deductions such as tips, tolls, surcharges, taxes, and Uber’s booking fee. To be more equitable to drivers, Uber’s service price is variable rather than flat, reducing costs if the journey takes longer than anticipated.
There is a rigorous screening process for potential Uber drivers. Applicants convicted of certain felonies will be left out of the driving pool. It may also apply to persons accused of important crimes but still in jail pending trial. Others who may be left out include those whose driving privileges have restrictions because of a recent traffic infraction or who have a driving record with several moving offenses.
Unless prohibited by local law, the IRS considers Uber drivers to be self-employed individuals (IRS). This implies that you will be responsible for reporting your income and paying associated taxes rather than automatically having them withheld.
Conclusion
Are you the person who would thrive as an Uber driver? Then this guide on how to become an Uber driver is for you.
Uber provides convenient and potentially lucrative transportation in several US states and cities.
Because you, the driver, choose your rates and schedule, you may work with Uber as a side gig, a full-time job, or even besides another job. You’ll need a smartphone and a vehicle no more than 15 years old to use the app.
Reference
- https://www.uber.com/a/us/ – Uber FAQ
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