Driving for Uber can be a great side job or a full time gig; whichever works for you. Earn money on your schedule and keep all your earnings. However, there are certain things every Uber driver should know. We will be sharing some Uber driving tips in this post. There will be a couple of surprises and some already known facts. The important thing is to be prepared and maximize the opportunity the job provides.
See below our top Uber driving tips.
You have to pay taxes on your earnings
Top of our list of Uber driving tips is paying taxes. As an Uber driver, you are not an employee but an independent contractor. This means you are responsible for paying taxes on your income. Uber is not responsible for doing this. You bear the brunt of all expenses and also taxes. You pay tax on your earnings after Uber has deducted its commission. It is important to be aware of this is it will mean your earnings will be lower than expected. Your take home at the end of the day can be quite a surprise.
You determine your hours
As I mentioned above, driving for Uber can be a great side job or a full time gig. You dictate your hours; you can decide to work for 2 hours in a day or 2 hours in a month. You can also decide to work around the clock. It’s all up to you. This is one of the many great perks of ridesharing, the opportunity of being your own boss. It affords flexible hours and a chance to make good money on your own schedule.
Manage your expenses
We understand that you need to keep up your ratings so you can earn those extra bonuses Uber offers top drivers. So you go overboard trying to attract those top ratings from customers by offering candy, visiting the car wash 2 to 3 times daily and so on. You need to pay attention to your expenses and do all that is within your power to keep them low or you will take home very little income.
Firstly, ration the amount of gums, water, candies, etc that you offer passengers. Do not leave the whole pack of candies or case of water out in the open. You can offer the passenger water during the trip. The offer might be turned down; this way, you actually give refreshments to people who actually need it.
Secondly, you can download map data for offline use to save phone data. Remember, “a penny saved, is a penny earned.”
Thirdly, find creative ways of cleaning your car while on the job without visiting the car wash. Make sure you have a dry rag and other cleaning products in the boot of your car.
Please note that your expenses can also help lower your tax bill, so be sure to track your mileage and other expenses so you can present them when you file your taxes.
See our post here for more creative ways to lower your expenses.
Ratings are Important
Uber drivers can be reported and terminated from the service if there are passenger reports of misconduct on the part of the drivers. Frequent low ratings can get you kicked off the Uber driver platform. Always offer professional service to passengers and be on your best behavior. At the end of the ride, you can remind the passenger not to forget to rate you. It is well known that when Uber is introducing bonus features into a new market it usually offers this first to drivers with high ratings. This is one of the many reasons why you should try to keep up your ratings
Uber payment options
Uber drivers are paid either weekly or daily. This depends on the payment option you choose. See them below:
- Direct Deposits – This happens every Thursday via direct deposits straight into your bank account.
- Uber Instant Pay – With the use of your personal debit card, the Uber Instant Pay option allows you to cash out up to 5 times a day. However, you are charged $0.50 for every time you cash out. Also, most Mastercard, Visa or Discover U.S. debit cards associated with traditional checking and savings accounts are accepted when you use them on Instant Pay. Instant Pay allows drivers to cash out their earnings on demand (instead of waiting a full week!). The program disburses funds upon the driver’s request and has no minimum cash-out amount.
You can also request an Uber debit card that links to a business account setup through Uber’s partnership with GoBank. Disbursing to the GoBank card does not incur a $0.50 fee; however it involves all of the responsibilities that come with having a checking account. Visit the nearest Uber office to you to find out if this option is available in your state.
These Uber driving tips will help you run a profitable Uber business.
Are you an Uber Driver and/or Entrepreneur? Did you enjoy this post? Are you looking for other ways to optimize your Ridesharing Business?-If your answer is yes to all three question, and you have not downloaded our kit(s) – you need to do so now and join thousands of other Uber drivers by clicking the Download link at the top right of this page, or by going here or here.