The Costs Associated With Being a Ride Share Driver In 2020

The Costs Associated With Being a Ride Share Driver In 2020
The Siliconreview
24 Decemebr, 2019

Advancements in digital technology over recent years have made a big difference to many aspects of our lives. This includes affecting the way we do business, the way in which we socialize and communicate, the way in which we shop, and even the way in which we travel.

When it comes to the latter, many people who used to use taxis and public transport in the past are now turning to ride share apps such as Uber, which enable them to get from A to B quickly, conveniently, and affordably. Of course, these apps have not only made things easier and more convenient for the public – they have also created lots of job opportunities for those that want to earn a good income by becoming a ride share driver. But just how lucrative is this type of work?

Well, it is very important for anyone who is considering becoming a ride share driver to do some thorough research, as you have to consider far more than just the amount per day you can make. You also have to think about the outgoings you will be faced with, as these costs can really mount up and they can make a huge difference to the amount you actually make each month or year once they have been deducted.

Some of the Costs Involved

While becoming a driver for a well-known ride share company can provide you with a great way to make your living, it is important that you are properly informed about the costs you have to take into consideration. You can then decide whether this is the right type of job for you. Some of the major costs you must consider include:

The Cost of Insurance

The cost of insurance can be quite high for ride share drivers because they spend a lot of time on the road and use the vehicle for commercial purposes, which represents a higher risk to insurance companies. It is worth checking what is covered by the base cover you get from the ride share company, as this may provide more coverage than you think. You can then look at what additional insurance you need in order to ensure you are properly covered while working as a ride share driver.

Specialist License Requirements

Depending on the state you drive in, you may also need to fork out for specialist license requirements such as a TLC or TNP license designed for people such as taxi and ride share drivers. This can cost close to $90 per year, which may not sound like a lot, but every little bit adds up. So, this is another essential cost you must take into consideration. 

Vehicle Renewal and Inspection Costs

As a ride share driver, you also have to take into consideration the cost of renewing your licensed vehicle. The vehicle must be licensed in order to drive passengers, and every couple of years you will need to get the vehicle inspected and renewed so you can continue with the work you do. Costs can vary but can be quite high – for instance, in New York, you are looking at over $600 every two years for the inspection and renewal.

Regular Inspection Costs

In addition to the inspection you get when you take in the vehicle for renewal, you must also make sure it is inspection on a regular basis at the DMV, which can add to your costs. These inspections cost around $40 every few months, so it works out to around $120 or so per year.

Cost of Filling Up

Naturally, in order to drive people around, you need to have a full tank of gas, so you also have to factor in the cost of filling up. If you are driving a lot as part of your job, the cost of filling up can be very high, so it is important to get an idea of how much you are spending on gas in order to work out how much you will be earning as a ride share driver.

Cost of Repairs and Maintenance

Finally, it is important that your vehicle is safe, reliable, and in good condition when you are a ride share driver, otherwise, you could put your own safety and that of passengers at risk. So, any repairs need to be carried out properly and the vehicle must be properly maintained. This costs money and is another outgoing that you must take into consideration.

Work Out the Costs

By looking at the above outgoings, you can get a better idea of how much on average you will need to pay out each month as a ride share driver. You can then get more of an idea of how much you will earn in income by doing this type of work.