Thinking about becoming a rideshare driver?
You probably have a few questions.
Here are the answers we’ve collected from our own rideshare driving experience and from the tales told by drivers around the world.
See ‘How to‘ for how the iDrive app works. These FAQs address the business of driving. Although we don’t have all the answers and some require local knowledge, most of the challenges drivers face in this business are universal.
Click each + to see topic details.
Remember, different countries and different drivers have different accounting and tax reporting needs. Check with a tax professional* to decide how you can customize and best use iDrive for your business situation.
5 Essential Tips for Driving Success
Standard points we share at Meetups and confirmed by the wisdom of other experienced drivers!
#1 Driving rideshare is a business.
Standard good business operating principles apply. Even if you’re a casual driver, you have new tax obligations that can bite you if you don’t understand the rules. Business always comes down to 3 things:
- Work smart to increase sales (a driving strategy = more fares)
- Control costs, and
- Claim deductible expenses at tax time (can be worth thousands).
Master each of those = Make More Money!
#2 Join local area Facebook driver groups.
Search FB for ‘Uber’, ‘Lyft’, or ‘rideshare’.
Good, you’ve found some local groups. You’ve already ‘Liked‘ and are ‘Following‘ your favs, hopefully us too!
The posts will keep you current on local issues and what drivers are doing about them.
Ignore any non-friendlies that post in some groups… or find a different group.
#3 Open two new FREE online bank accounts.
Set one up for Uber/Lyft to drop your payments into. Partner earnings deposits are its only reason for existence.
Use the other one to save up $$$ for tax time. Seriously, this is important! Tax bills add up quickly, both income tax and depending on where you live, sales tax such as AU GST. Estimate your tax bracket… take that percentage out of every deposit, every week (plus AU GST owed — earnings paid to you/11 — if applicable). Put the $$$ into this account. If you end up paying tax at the end of the year, you have the funds… and if you $$$ leftover, you just gave yourself a refund! $$$😃$$$
#4 Track expenses: use the iDrive app!
(back to #1) It’s FREE! If all you want to do is track mileage and use a standard government tax rate at tax time, using iDrive is the easiest way to document deductible expense. Turn the app on and off every shift. That’s it.
But, you may get a bigger tax deduction if you record your actual expenses and use those numbers at tax time. Use the app to track shift mileage and simply add fuel and all other business purchases with pictures of their receipts. The result: a Vehicle Logbook. CSV files and receipt images = tax records!
Taking actual expenses X your % business use of the car (calculated by the iDrive app if you enter start and end of the year odometer readings) may mean you’ll pay less tax = Make More Money!
#5 Be a pro.
(back to #1 again) Drive like a pro, even if you drive only a few hours a week. Use two key iDrive app features:
- Set shift $ targets. Prep mentally to succeed by defining success.
- Add fares during your shift. See your success! The app shows you real time progress toward $ goal, $/hour earnings rate, and driving efficiency.
Use your personal numbers to analyze your results. What can you do differently that might Make More Money?
*We’ve created a great tool to help with your bookkeeping but we’re in the software business, we can’t give you tax advice. Every country’s tax laws are different. Every driver’s tax situation is different. See your accountant to discuss your specific business needs. If you use iDrive diligently, your reports should provide the bookkeeping records required for most business accounting and tax reporting situations.