Uber and Lyft drivers are considered independent contractors rather than employees. Both companies do not pay Social Security, Medicare, or state taxes for their drivers nor do they pay into unemployment funds. A self-employed driver is required to file as independent contractors on their state and federal income tax returns.
Drivers for Uber and Lyft receive decals to place on their windshields while driving for their apps. These stickers are typically placed on the lower left corner of the windshield when looking at the vehicle from the front. Both companies indicate that decal placement is optional except where required by local law but encourage their use to help riders […]
Uber and Lyft work with auto insurers in all 50 states to provide liability and underinsured motorist insurance coverage for drivers. Each driver is covered by third-party liability insurance when using app drive modes but prior to picking up passengers. Limits vary by state but the typical liability insurance covers up to $50,000 per person and $100,000 per accident […]
Uber and Lyft drivers do not incur fees from cancelling rides. However, driver cancellations of rides on both apps can lead to lower acceptance rates. Acceptance rates are used to evaluate driver performance with consistently low rates leading to restricted access to the apps. The companies also reserve the right to terminate access to their apps if drivers […]
Drivers can complete rides for Uber and Lyft at the same time. There are no legal restrictions on drivers who use both apps based on the terms of service or privacy agreement. As self-employed contractors, drivers are also not bound by non-compete restrictions. Many drivers use Lyft and Uber along with delivery apps like Postmates and Grubhub. […]
Uber and Lyft drivers comply with annual inspection requirements by using third-party inspectors from local auto shops or dealerships. Company representatives who staff local activation centers can recommend inspection services to drivers.
Uber: Uber requires every driver-partner to maintain their own auto insurance that meets or exceeds state standards. The company provides coverage for third-party liability, uninsured motorist injury, and collision coverage after a $1,000 deductible paid by the driver. Lyft: Lyft requires each driver to acquire auto insurance meeting or exceeding their state’s auto insurance requirements. The company pays for […]
Uber and Lyft are able to offer fares at competitive rates because their drivers typically own the vehicles. Drivers for both companies also pay for auto insurance, maintenance, and fuel. Uber and Lyft have begun offering rental services to drivers who want to carry passengers without owning their vehicles.
Uber and Lyft drivers typically do not qualify for unemployment because they are considered independent contractors rather than employees. These restrictions may vary by state as legislators address driver employment status.
Uber Uber allows any licensed driver meeting their state’s minimum driving age to work for the company. Applicants must have one year of licensed driving if they are 24 years old and up and three years of licensed driving if they are 23 years old and younger. Lyft Lyft requires all drivers to be at least 21 […]