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Top Things to Know Before Becoming An Uber Driver

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Uber has grown to become one of the world’s most successful startups. Founded in 2008, it is now in over 60 countries and 700 cities. Used by millions of people daily, it’s a favoured form of transport by many because of its affordable prices and convenience. 

If you’re thinking of becoming an Uber driver, there are certain things that you need to know. This list, of course, isn’t complete – so it’s important that you do your research before applying with Uber. But it will give you a good starting point on which you can build your knowledge.

But first of all, you need the right insurance. You can visit the onesureinsurance.co.uk website to make it easier for you to decide. Let’s get to what certain things you need to know. 

Becoming an Uber Driver: How You Get Paid

An Uber driver can be a very prosperous career. The way that you are paid will be split into two sections: if you drive and if you deliver.

When you drive you will be able to earn money based on the type of fare:

  • A standard fare: you will earn this for every completed trip.
  • A surge fare: if the rider demand is high, you will be able to earn more money on top of the standard fare. 
  • The minimum amount per location: depending on what city you operate in you will earn a minimum or maximum amount. The amount that you earn will be reflected by the amount of effort you have put in.
  • The service fee: passengers will pay this – it helps to pay for things from customer support to app development.
  • The booking fee: passenger will pay this upon ordering an Uber. It covers operational, safety and regulatory costs. 

If you deliver your passenger efficiently, you could also receive the following:

  • A standard delivery fare: for each delivery of passengers that you make, you will earn a flat amount for the pickup, dropoff and the distance in which you have travelled. If there are any delays – whether that be from traffic or another issue, it will be factored into this.
  • A multiple order fare: alongside the above, you can earn more money from dropping off more passengers.

You Will Be Working For Yourself 

It’s important to know that you will be working for yourself and you aren’t an employee. Although Uber will handle all the logistics and payment, you will be considered as a ‘driver partner’ (an independent contractor in layman’s terms). 

And although you might like the freedom and flexibility that comes with this arrangement, it’s important to be aware of some of the financial ramifications that it brings. Firstly, you will be responsible for your own taxes. For many that have never been self-employed, this process can seem daunting. But by researching and following the advice of a professional, it will become easier over time.

Alongside taxes, you will also need to pay for your own pension. The thought of this might make a career as an Uber driver seems short-lived, but if it’s done correctly, you can have a good pension in place for the future. Of course, if you aren’t doing this role full time, you might not want to bother with a pension. But in terms of tax, you will definitely have to report any extra income that you earn from Uber. 

Becoming an Uber Driver: You Need The Right Insurance

A lot of people don’t know that there is a certain type of insurance for Uber drivers. Whilst auto insurance can be sufficient enough to meet the requirements that are set by Uber, it’s always a good idea to get additional coverage to protect you and your passengers. By ensuring that the insurance covers accidents and claims, you can have the peace of mind that you need.

You Will Need To Pass A Background Check

Before you can drive with Uber, they will require you to pass a background check. Examining your driving record and if you have committed any crime, they will then determine whether you are fit for the role. 

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