Basic requirements to become a rideshare driver include:
1. A car with model year 2000 or newer
2. Seating and seat-belts for at least four passengers
3. Valid driver's license
4. Proper car insurance
5. Successful background check
Rideshare companies and certain states have highly-specific requirements beyond the general items above.
Uber Partners and Lyft Driver requirements
Driver requirements | Uber | Lyft |
Age | At least 21 | At least 21 |
Driving experience | You must have a valid driver's license in your state for at least one (1) year | You must have a valid driver's license in your state for at least three (3) years |
Driving record | Clean driving record essential. No DUIs or incidents of driving without a license, etc. | Clean driving record essential. No DUIs or incidents of driving without a license, etc. |
Insurance | You must be listed as a driver on the personal auto insurance policy | You must be listed as a driver on the personal auto insurance policy |
Social Security Number | Required for background check | Required for background check |
Technology | Must have a smartphone to be able to download Uber app | Must have a smartphone to be able to download Lyft app |
Vehicle | Model year 2000 or newer (2005 and up in some states); car must be registered in the state in which you plan to drive | Model year 2004 or newer (2006 to 2009 in some states); car must be registered in the state in which you plan to drive |
State rideshare driver requirements
Requirements for rideshare driving vary by state and in some cases by individual markets. For example, Colorado requires a medical exam, which is not necessary in most other states. Other special state requirements include:
State | Special requirement examples |
California |
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Hawaii |
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Nevada |
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Utah |
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Washington, D.C. |
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Uber and Lyft car requirements
The most popular rideshare companies have similar vehicle requirements, although there are subtle differences.
Car requirements | Uber | Lyft |
License plates | Valid plates required for the state in which you plan to drive | Valid plates required for the state in which you plan to drive |
Seating | Must have seating and working seatbelts for at least 4 passengers | Must have seating and working seatbelts for at least 4 passengers |
Vehicle age | Model year 2000 or newer (2005 and up in some states) | Model year 2004 or newer (2006 to 2009 in some states) |
Doors | Must have at least four doors | Must have at least four doors that can open from interior and exterior; no jump doors |
Inspection | Must be able to pass safety inspection. This can usually be performed at a local rideshare company office or at an approved repair shop | Must be able to pass safety inspection. This can usually be performed at a local rideshare company office or at an approved repair shop |
On its website, Lyft says that dents and body damage are not allowed and that the tires, windows, A/C and heat must be in good condition.
Rideshare auto insurance requirements
Rideshare drivers must carry their state's mandated minimum car insurance, yet insurance gaps can still exist, so read your own policy and any policy provided by your rideshare company carefully. If your state is one where rideshare auto insurance policies are available, that may be your best bet.
Whatever you do, don't skimp on car insurance, since Lyft and Uber's million-dollar policies don't go into effect until you have accepted a ride. If you're in driver mode and have not yet accepted a ride, your personal auto policy would be your primary coverage.
Rideshare driver disqualifications
According to rideshare websites, the following may disqualify potential drivers:
Item | Uber disqualification | Lyft disqualification |
License | Suspended, revoked, or invalid license | Suspended, revoked, or invalid license |
License plates | Invalid registration | Invalid registration |
Vehicle age | Model year 1999 or older, or 2004 or older in some cities | No more than 12 years old |
Insurance | Suspended, revoked, or invalid insurance | Insurance not in driver's name |
Background check |
| Among other things, Lyft disqualifies driver applicants for:
|
Other conditions exist; review your rideshare company's complete requirements before signing up.
What can you earn as an Uber or Lyft driver?
If you meet all requirements to be a rideshare driver, it can be a good way to make some extra money, but turning it into a full-time job can be a challenge. While the potential for earning a lot of money exists, most drivers earn much less than you'd think. Uber and Lyft make it possible to estimate your potential earnings using tools on their websites. You can enter how many hours you want to drive and where, and potential earnings can be calculated.
Earnings can vary widely, according to the 2018 The Rideshare Guy survey of nearly 1,200 Uber and Lyft drivers about their pay, preferences and insurance status.
The survey found that Uber drivers earn an average of $16.90 an hour (which is a $1.00 more than last year) before expenses, while Lyft drivers are bringing in $17.37 an hour. This is a gap of only 47 cents an hour, down from $2.00 an hour in last year's survey.
Experience seems to matter with newbie drivers (fewer than 500 rides) earning an average of $14.74 while more long term drivers (10,000+ trips) are bringing in roughly $20 an hour.
It is important to note that all expenses related to operating their vehicle falls to drivers so their net earnings are usually dramatically lower than these figures.
One study found that a driver who collected $62,500 in fares annually (which is not most rideshare drivers) might be left with about $27,600 after taking out Uber's cut, gas, maintenance, car insurance, health insurance and taxes.
These numbers don't include tolls, which can be hefty when operating in certain markets.
Is Uber better than Lyft? What drivers said about each company
The flexibility and pay are the main reasons people choose to rideshare drive. However, according to a survey of 1,200 drivers in The Rideshare Guy's 2018 reportall rideshare services are not created equal. While most drive for multiple services, one service tops the charts when it comes to driver satisfaction.
Almost 80 percent of respondents admitt, ed to working for more than more 2 services. Uber is the biggest employer with 58.7 saying they drive primarily for Uber with only 16.8 percent saying Lyft is their main employer although 20 percent claim they work for Uber and Lyft equally.
When it comes to driver satisfaction Lyft is the big winner. Only 58.2 percent of drivers said they were satisfied with their Uber driving experience while a shocking 75.6 percent of Lyft drivers said they were satisfied.
While Lyft is still the favorite, Uber had a much better year than expected. "I was surprised to see Uber's approval among drivers actually go up," says Harry Campbell, Founder of The Rideshare Guy. "At the beginning of 2017, 49.4 percent of Uber drivers reported that they were satisfied with their Uber driving experience and one year later that number is 58.2 percent -- a 9 percent increase."
Uber went out of their way to improve driver satisfaction and it may have worked. "I think the improved numbers are due to the fact that Uber did not cut rates for drivers in January like they have in the past and because of Uber's driver focused 180 Days of Change campaign, that added a tipping option and 24/7 support for drivers," says Campbell.
Dissatisfaction with pay and the rideshare gig in general still leads to high turnover rates. According to recent report by The Information, only 4 percent of Uber drivers are still driving a year later. Even Ubers own data shows that over 60 percent of drivers quit after a year.
Steps for becoming an Uber or Lyft driver
If you and your vehicle qualify, here's what you need to do to sign up:
1. Complete an application online for Uber or Lyft.
2. Submit information for a background check, including your social security number.
3. If you're applying to Lyft, schedule time with a mentor.
4. Have your vehicle inspected at an authorized inspection station.
5. Make sure you have necessary auto insurance for ridesharing.
6. Obtain a sticker from the rideshare company. Display it on your windshield or dashboard.
7. Once you're approved, download the app and software license for drivers on your smartphone.
8. Enter the hours you are available to work on the app.
9. Wait for riders to request a ride.
You can check the status of your application on either site.
Tips for rideshare success
To succeed as a ride-share driver, follow the steps below:
1. Track your expenses: Track costs on a daily basis to determine exactly how much you are earning an hour and so you have accurate expense records when filing tax returns.
2. Use a tracking app: "One of the biggest issues with the independent contractor model is that pay is not very transparent," warns rideshare blogger Harry Campbell. Using an app, such as SherpaShare, to pinpoint your biggest costs.
3. Understand the tax code: As an independent contractor, taxes aren't withheld from your paycheck. It is up to you to calculate the amount you owe the government. Setting aside money each month for taxes can prevent a big surprise at tax time.
4. Drive early or late: Utilization (the time you spend with a passenger in the car) is critical to your success. "Savvier drivers are doing much better than the average, there is opportunity doing what other drivers aren't willing to do. That might mean driving the late night hours or even getting up at 4 a.m. to take business people from the suburbs to the airports," explains rideshare Campbell.
Recognize that working as a rideshare driver has limitations, and set realistic expectations for earnings. Become a rideshare veteran within a few months and earn money in your spare time (or even as a full-time job). Note: You will be considered an independent contractor and responsible for your own taxes on your earnings.
You might meet some interesting people and may enjoy the satisfaction of turning otherwise idle time into a supplemental income stream.
Reporting by Mark Vallet, Gina Pogol and Beth Orenstein
