Are Uber or Lyft drivers self employed?
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.
Are Uber or Lyft cars marked?
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 find their drivers.
Who insures Uber or Lyft drivers and what are the requirements?
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 in expenses from bodily injuries caused to motorists and pedestrians by auto accidents. Each driver is also covered up to $25,000 per accident for property damage expenses.
During a ride, the driver and passengers are covered by liability and underinsured motorist policies. The third-party liability insurance covers up to $1,000,000 per accident during rides. Additional coverage up to $250,000 per accident is provided to cover costs incurred by accidents with uninsured or underinsured motorists.
Drivers are not covered by company insurance policies when they are not using the apps. Uber provides collision and comprehensive coverage to cover the gaps left by personal insurance policies with a $1,000 deductible. Lyft offers similar coverage with a $2,5000 deductible.
Do Uber or Lyft drivers get penalized for cancelling?
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 repeatedly cancel rides based on destinations, projected fares, or discrimination against specific groups. Uber and Lyft prohibit driver discrimination of riders based on age, race, gender, sexual orientation, nationality, religion, or disability.
Can you drive for Uber and Lyft at the same time?
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.
The primary issue for a driver who uses Uber and Lyft is managing their time. Drivers can alternate between Lyft and Uber on their phones in search of their next rides. A driver can also use a dedicated mobile phone line for each app to keep their schedules full of rides. There are apps like Mystro that charge small monthly or per-ride fees to manage a driver’s use of both apps.
Who does Uber or Lyft inspections?
Who pays for the insurance on Uber or Lyft?
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 contingent collision and comprehensive coverage with a $2,500 deductible paid by the driver.
Who owns the Uber or Lyft cars?
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.
Do Uber or Lyft drivers qualify for unemployment?
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.
What is the minimum age to drive for Uber or Lyft?
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 years old at the time of their application with the exception of New York City, which allows people 18 and older to drive for ride-hailing companies.