Q: I’m currently a grad student and my summer plans got cancelled. This has suddenly left me with a wide open schedule for the next 3 months, so instead of getting a temporary job I thought I would try becoming an Uber driver. Any thoughts?
First, Uber drivers are independent contractors, not employees. Being an independent contractor means that you don’t have employee protections such as minimum wage, unemployment or worker’s comp. And you have to shoulder 100% of your federal self-employment tax.
Many drivers who didn’t think Uber paid enough wanted to unionize and went on strike, but the Department of Labor issued a memorandum on May 14 confirming that they are in fact, contractors. Some studies say that after gas, maintenance and other expenses, drivers make an average of $8-10/hr. Of course this will vary greatly depending on individual circumstances and locations. But for most drivers, Uber is not their main source of income.
Having said all that, if you simply want extra money and not be tied down to a schedule, and don’t mind keeping track of your own taxes, driving for Uber might work well for you. It’s one of those “gig-economy” jobs that, once you have applied and been approved, you can continue doing sporadically even after the summer whenever your schedule allows it.
In their article “11 Things To Know Before Becoming An Uber Or Lyft Driver“, Forbes suggests these tips for success as a driver:
Know your area’s peak times. That’s when you’ll earn the most per hour, because rates go up during those times.”Typically, peak hours tend to be late at night or early in the morning — sometimes very late at night or very early in the morning — especially during concerts, sporting events, festivals, conventions, trade shows and such.”
Don’t become a driver if you don’t enjoy being with people. Passengers will be able to rate their experience with their driver, so if you are a curmudgeon it could affect your rating which in turn may affect whether you’ll be called to pick someone up. Some riders only call drivers with perfect ratings.
Lastly, you might want to consider driving for both Uber and its main competitor, Lyft. Many drivers do because they find that sometimes one service offers better rates than the other, and apparently there is no prohibition about work for both. Lyft is also generally seen as being more driver-friendly” than Uber.
Hope this helps you, enjoy your summer!
Source: Forbes.com
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Eva Del Rio is creator of HR Box™ – tools for small businesses and startups. Send questions to Eva@evadelrio.com
