Uber & Lyft Frequently Asked Questions (FAQ)

What if I get in an accident while driving with Uber or Lyft?

If you get in an accident while you’re en route to pickup a rider or on the actual trip, it depends on what stage of the ride you’re on. Click here for graphs of Lyft and Uber’s Insurance policies. This can explain it better than words can!

Can I work both driving Uber and Lyft at the same time?

Absolutely! You’re an independent contractor and have no restrictive obligation towards one or the other. The way to do it is to first “go online” with both apps. Then whichever one gets the first request you’ll do that trip. Quickly go “offline” on the other app so you don’t get two simultaneous trips!

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Sign up here to Drive Uber. Best Uber Driver Code: danials1577ui

How do taxes work driving Uber and Lyft?

Uber and Lyft do not take out any taxes when they pay you. You’re an independent contractor, so it’s your responsibility to pay your taxes each year. They will send you a 1099 form – electronic delivery via email. I recommend keeping track of all your driving expenses (ex: gas, mileage, maintenance, car washes, amenities, and more). There’s a great app called Expensify (iPhone / Android) which helps you keep track.

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Sign up here to Drive Lyft. Best Lyft Driver Code: HAMZA66064

How long does it take to become active driving Uber or Lyft?

The background check takes the longest! 3-10 business days on average. The sooner you sign up the faster you’ll get the results back. You must pass a State and Federal background check which looks at both your criminal history and motor vehicle records.

  1. More info on Uber Driving background check
  2. More info on Lyft Driving background check

Why do I see so many different referral / bonus / guarantee amounts?

Your eligible Uber and Lyft referral incentives are based on the city that YOU sign up to drive. For example, if someone in Colorado sends you a code that says you’ll receive $1,000 bonus but you’re signing up in Los Angeles, you won’t be eligible for that Colorado incentive. You will only be eligible for the referral incentive in YOUR city! Also, referral bonuses change regularly in each city. So if you signed up last year, you may be grandfathered into a more lucrative bonus then the next person who signed up yesterday. See what your current incentive is by signing up!

How do referrals work? What is a referral guarantee? Bonus vs. Guarantee

For Driving Uber: There is a BIG difference between a bonus and a guarantee. If you receive a bonus, that money will be paid out to you ON TOP of the money you make during your trips. A guarantee means that after you complete a certain number of trips, Uber will supplement up to that dollar amount, but no more. For instance, let’s say you signed up for a $500 guarantee and you need to complete 75 trips within 30 days to qualify. This means that during those 75 trips, Uber will guarantee that you make at least $500. If you make anything under $500 (for example let’s say you made $420 in those 75 trips) you will receive an extra $80 to hit $500 total. It’s not as lucrative, and has caused a lot of confusion amongst drivers! If you’ve already signed up to drive but didn’t put a code in, click here to show you how to retroactively add the code!

For Driving Lyft: Your bonus amount is incrementally broken down into a dollar amount per trip you take within a certain window of time. For instance, currently in Los Angeles, if you refer a driver, you’ll earn an extra $3.08 for every ride you give in your first 30 days, up to $400. The person who referred you will get $400 too, incrementally per trip.

How do I use the Uber Driver App?

When you get your vehicle inspection, an Uber Expert will send you a lot of great resources via email, including this video tutorial that will show you exactly how to use the Uber driver app. Also, check out this virtual tour of how to use the Uber driver app.

How do I use the Lyft Driver App?

For the Lyft driver app, reference this video.

How do I switch between GPS?

When Driving Uber or Lyft, you have the ability to select between either Google Maps, Waze, or Uber/Lyft’s internally built GPS. Which one is the best? That is up to your personal preference, I prefer Google Maps! Some people swear by Waze, but that app has got me into some sticky situations in the past. You can always go into settings and switch your GPS if needed.

Does Uber have Leasing or Rental Options?

Depending on your city, Uber has leasing and rental options through what’s called their Vehicle Solutions program. The leasing option is called Uber Xchange Leasing – deposits as low as $250. You must first pass their background check before applying for any Vehicle Solutions options.
Click here for more information on Vehicle Solutions. If you’ve already signed up “use my own car” but now want to explore the VS program, click here.

How do tips work driving Uber and Lyft?

As of July 2017, riders now have the option to tip drivers through the Uber app after the trip is complete. Cash tipping is okay to accept, although Uber does promote their platforms as “cash-less” as to prevent potential driver vulnerability or theft. Drivers keep 100% of their tips!

How often do I have to drive?

You can drive as little or as much as you’d like! This gives you the flexibility to choose your own schedule. Some drivers work full-time shifts of 40 or more hours, while others choose to drive part-time or even just a few trips a week!  *Certain cities may have minimum monthly requirements in order to maintain an active Uber/Lyft driver account*

How much data does the Uber Driver / Lyft Driver App take up?

People can exaggerate how much data these Apps use. In terms of data amount, it takes up about as much as any GPS app would (ex: Google Maps, Waze, apple maps, etc). If you’re driving full-time, it is unlikely to exceed more than 3 GB of data each month.

What are some perks of being an Uber Driver?

Uber has plenty of driver rewards that you can take advantage of the day you become an active Uber driver. Click here for a full list, but here are some key discounts:

1. Uber has discounts on AT&T, Sprint, and Verizon to save you between 15-20% off your monthly bills!

2. You can apply for a fuel card which gives you discounts at the pump! Saving on gas is a huge perk of being an Uber driver!

3. You can get up to 15% off at Auto-Zone, Firestone, Maaco, Meineke, Midas, Jiffy Lube, and Valvoline.

*Here are some Lyft Driving Perks as well*

How do payments work?

Direct deposits are paid out weekly every Wednesday. You will specify a checking account number and routing number once you download the Uber Driver App or Lyft Driver App and sign in. The pay cycle goes from Monday 4am till the following Monday at 3:59am, paid out that following Wednesday! *Your very first direct deposit MAY take up to two pay cycles before receiving.

Also, Uber and Lyft now offer instant payment methods which you can withdraw the money you earn anytime for a $0.50 transaction fee, deposited to your debit card.

Uber offers a Go Bank debit card.