The thrall of driving for a rideshare company like Uber or Lyft is usually centered around how you determine your own hours, so you can work for as long or as little as you want. Offering rides during peak times can result in higher pay, whether it’s from prices increasing or because there are more requests. With this power in the driver’s hands, it seems like a simple decision for many who are interested in this position. However, there are other costs that potential drivers may not know about. Let’s go over what the costs of driving for Uber and Lyft entail.
One of the first costs is those of operating the vehicle. While offering rides for more hours may result in more money earned, there’s all that wear and tear on the vehicle. According to Ridester, Uber drivers need to have insurance, pay for their vehicle, cover tolls, gas, and continuously maintain their vehicle. They dive into the expenses of owning a vehicle, which the IRS has estimated is $0.50 per mile. While these can be deducted from the driver’s income, they may not realize that number is what they’re spending, or putting into their efforts as a rideshare driver.
Rideshare drivers may also not think about how their car will eventually start to cost them more money, due to its age and keeping up with maintenance and repairs when necessary. At some point, the cost of repairs may no longer be worth it, so a driver goes to buy a new car. If they want to trade in their used car and use some of that to help with acquiring a new one, they may be in for a shock because of how little their car has in value.
When potential drivers are thinking about driving for Uber or Lyft, they need to take these points into consideration. This way, they can know if this is a good fit for them or if this will create even more financial issues that they’ll have to deal with in the future.
The Rideshare Law Group protects those who have been hurt in rideshare accidents, whether it was the fault of the driver or by a third party. Because these crashes can be so complex, we’re here to make sure our clients get justice and don’t get a settlement that’s less than they deserve. Reach out to us today.