Rideshare driving

Lyft says its median driver netted $23.46 per engaged hour after Lyft's estimated expenses in the second half of 2023, including tips and bonuses and excluding waiting time (Lyft). Lyft also commits to drivers earning at least 70% of rider payments each week, after external fees. Uber publishes no fixed share of each fare and no national hourly figure (Uber).

Fuel, insurance and wear come out of your pay. You need a qualifying car, but you can rent one through Uber's Vehicle Marketplace or Lyft's Express Drive (Lyft). Uber requires drivers to be at least 23 (Uber), and its background check typically takes 3 to 5 business days (Uber Help).

How rideshare pay works

Uber's upfront fares factor in surge, and tips are added after the trip. Uber says drivers keep 100% of tips (Uber). Lyft says drivers keep tips, which averaged 8% of earnings in 2023 (Lyft).

Uber's Quest promotions require opt-in and completing trips in a set time. Lyft's Turbo, Ride Challenges and Flash Turbo bonuses are scheduled or appear in real time, so they vary from week to week.

What rideshare drivers actually earn

These figures measure different things, so read each label.

The BLS wage excludes self-employed workers, so it doesn't measure rideshare pay. The Lyft figure is the company's own estimate and counts engaged time only. The Massachusetts minimum applies only there and also covers engaged time. The IRS mileage rate is a tax deduction benchmark. Uber's in-app Earnings Hub shows your own total earnings and active hours each week (Uber).

Where the hours go

Lyft's figure excludes waiting time, and Uber's page says wait times vary without giving a typical number. The guide on calculating your actual hourly earnings shows how to fold in unpaid time.

What it costs to start

Insurance is an ongoing cost. Instant Pay is optional.

Where to sign up and what your car must meet

Uber's help center says vehicles must be 10 model years old or newer, four-door and inspected (Uber Help). Uber Black needs a vehicle 6 years old or newer and a 4.85 rating (Uber). Uber also asks for 1 year of U.S. licensed driving, or 3 years if you are under 25 (Uber).

Permits, insurance and taxes for drivers

Permit rules depend on where you drive. New York City requires a TLC driver license for for-hire driving (NYC Business). Check your state's transportation regulator and your city's licensing office for local rules.

Uber's liability coverage while you're online and available is $50,000 per person and $100,000 per accident for injury, plus $25,000 for property damage (Uber). Lyft lists the same minimum limits while the app is on and waiting, if your personal insurance doesn't apply. Lyft's repair coverage requires your own comprehensive and collision insurance (Lyft).

The IRS lets you deduct car expenses by actual expenses or the standard mileage rate, plus tolls and parking (IRS Publication 463). Self-employment tax is covered on the IRS's gig work page.

Deactivation, variable pay and scams

Uber's deactivation page says the most common reasons for losing access are expired documents and Real-Time ID Check failures. A rating below your city's minimum, averaged over your last 500 rider ratings, can also cost access. So can crash or citation reports, background-check issues such as pending charges or recent moving violations, and driving an unapproved vehicle. A failed background check is generally treated as loss of eligibility, not a deactivation. Uber says it may remove access without advance notice for legal or safety reasons. Its community guidelines say reports of dangerous driving can cost access even if no law was broken.

Who rideshare driving fits, and who should skip it

It fits if:

• You own a car that meets the platforms' vehicle rules and can absorb fuel, insurance and repair costs.
• You can pass a driving-record and criminal-history check, which can end access if something turns up.
• You can live with pay that varies by trip and city, and you want to decide week to week whether the numbers work.

Skip it if:

• You have no car and don't want to rent one. Dog walking needs no vehicle, and data annotation can be done from home.
• You can't cover a collision deductible, which applies when you carry your own comprehensive and collision coverage.
• You need a fixed hourly rate. Neither platform promises one.
• You can't absorb a sudden loss of access to one app account. House cleaning with direct clients doesn't depend on a single platform account.

How to start driving for Uber or Lyft

1. Check your age, driving history and vehicle against Uber's requirements and Lyft's requirements.
2. Confirm local permit rules with your state and city. In New York City, start with the TLC driver license page.
3. Ask your insurer about rideshare use, and compare its answer with Uber's insurance page and Lyft's insurance page.
4. Apply through the official Uber or Lyft sign-up page and submit the background check. If Uber's check stalls, see Uber's help article.
5. Log miles, tolls and parking from your first trip, using IRS Publication 463.
6. After one week, plug your own earnings and hours into the hourly earnings guide to decide whether to keep going.