Taking advantage of ridesharing companies is a great way to earn extra cash. You can work on your time for as long — or as little — as you want. You are, essentially, your own boss.

image

And what can be better than that?

There are, however,  a few rules that you should follow if you decide that the ridesharing economy is for you. There are tax and other business considerations as well as the responsibilities of working for yourself that you may not be aware of. If you decide to share your ride, then remember these few points:

Taxes

The most important thing to understand as a participant in the rideshare economy is that you are responsible for all of your taxes. Rather than being classified as an “employee” by a rideshare company, you will be an “independent contractor.” This distinction is important.

As an independent contractor, there will no taxes withheld at all from your payments. The company will take a fee and then everything else will be passed on to you. This means that you must take all taxes into account before you spend that money: find out which tax bracket you are in and put away that much per month to make sure you are compliant on your taxes.

You do not want to owe a ton of money at the end of the year.

Choosing the Right Car

You should make sure that you have a reliable car that will always be ready when you are. You won’t make any money if you go to pick up a client and your car won’t start!

Look for cars that fall in one of two categories: fuel efficiency and coolness. If you opt for a fuel efficient car, then you will consistently save money on each ride. But, if you opt for coolness, than you may get more clients overall.

Imagine calling for a rideshare and the driver picks you up in a great car, like a Dodge Charger: you’re paying the same as if you were riding in a Smart Car or an old junker, but you’d feel like you’re getting a better ride. As a driver, this can lead to better tips, better reviews and more client requests. And the name of the game is clients, so you should do everything you can to improve the riding experience that you offer.

Safety

Safety should always be a top concern for any rideshare driver. Keeping yourself and your customers safe should be your number one priority.

Always obey local traffic speed limits and regulations. Some rideshare apps also have a built-in safety checklist that will monitor your speed and driving habits as well as keep you updated on how long you’ve been driving so you know when to take breaks. Also, be wary of your passengers: you may decline to drive them if they seem too intoxicated or if they are aggressive.

Ridesharing can be a great way to make extra money if you remember these simple tips.

Adam Hamilton was very excited when he first heard about the rideshare concept, and was one of the first to jump on the bandwagon. He shares his experience and tips with others.

Related Posts Plugin for WordPress, Blogger...