What you need to do to drive for Uber
To drive for Uber, you must be at least 18 years old, have a valid driver's license, proof of insurance, and a vehicle that meets Uber's requirements. You'll submit these documents through the Uber app during the sign-up process. Uber will run a background check, which typically takes three to five business days. Once approved, you can start accepting rides.
Your vehicle must be four doors, have working seat belts and airbags, and pass a vehicle inspection. The car can be financed, leased, or owned outright — Uber doesn't require you to own it free and clear. If you lease or finance, you'll need to show proof that you're allowed to use it for commercial purposes, since some lease agreements and loans prohibit it.
You'll also need a smartphone with the Uber Driver app installed and a reliable data connection. The app is how you receive ride requests, navigate to passengers, and get paid.
Key Takeaways
- You need a valid driver's license, insurance, and a vehicle that passes Uber's inspection before you can start driving.
- Background checks take three to five business days, and Uber will reject you if you have certain driving violations or criminal convictions within a set timeframe.
- You keep a percentage of each fare after Uber's commission; the exact split varies by city and changes periodically.
- You're classified as an independent contractor, which means you pay your own taxes, vehicle maintenance, and insurance — Uber does not withhold taxes or provide benefits.
- Your earnings depend on demand in your area, time of day, and how many hours you work; there's no may provide minimum pay.
How Uber calculates what you earn
Uber charges passengers a fare based on distance and time, then takes a commission before paying you. The commission rate varies by city — it's typically between 20 and 30 percent, though Uber adjusts this periodically. You see the commission percentage in your app settings, and you can check what you'll earn for a specific ride before you accept it.
In most cities, you also earn money from surge pricing when demand is high. During surge periods, Uber multiplies the base fare by a multiplier (for example, 1.5x or 2x), and you receive your share of that higher fare. Some cities use a different system where Uber sets a higher base rate during busy times instead.
You don't earn money while you're waiting between rides or driving to pick up a passenger — only the time from pickup to dropoff counts toward your earnings. This means your actual hourly rate depends on how efficiently you can keep your car occupied with paying passengers.
What counts as a vehicle expense you pay yourself
As an independent contractor, you cover all vehicle costs: gas, maintenance, repairs, registration, and insurance. You must carry commercial auto insurance or a rideshare insurance policy, because personal auto insurance typically doesn't cover you while you're driving for Uber. Rideshare policies are usually cheaper than commercial policies and are designed specifically for this work.
You can deduct vehicle expenses from your income when you file taxes. This includes gas, oil changes, tire replacements, repairs, insurance premiums, registration fees, and depreciation. Keep receipts and track your mileage — the IRS allows you to deduct either your actual expenses or use the standard mileage rate, which changes each year. Many drivers find it simpler to track mileage and use the standard rate.
Wear and tear on your vehicle happens faster when you drive for Uber than for personal use. Tires, brakes, and engine components wear out sooner, so budget for more frequent maintenance than you would for a personal vehicle.
Background check requirements and what disqualifies you
Uber runs a background check through a third-party company and looks at your driving record and criminal history. The check covers the past seven years in most states. Certain violations automatically disqualify you: a DUI or DWI conviction, reckless driving, driving with a suspended license, or multiple traffic violations within a short period.
Felony convictions also disqualify you, though the timeframe varies. Some felonies from more than seven years ago may not appear on the check, but violent crimes or crimes involving dishonesty can disqualify you indefinitely. Uber's exact standards change, so if you have a criminal record, you can contact Uber support to ask whether you're may be able to access before you submit your application.
If your background check is denied, Uber will tell you why and may allow you to appeal if you believe the information is incorrect. You can request a copy of your background report from the screening company and dispute inaccuracies directly with them.
How taxes work when you drive for Uber
Uber does not withhold taxes from your earnings. You're responsible for paying federal income tax, self-employment tax (Social Security and Medicare), and state income tax if your state has it. Uber will send you a Form 1099-NEC at the end of the year showing your total earnings, but this is for your records — you must file your own tax return.
Self-employment tax is roughly 15.3 percent of your net income (after expenses). This is in addition to regular income tax. Many drivers are surprised by this bill because they're used to employers withholding taxes automatically. Setting aside 25 to 30 percent of your earnings for taxes is a common strategy to avoid a large bill in April.
You can deduct business expenses from your income before calculating taxes. Vehicle expenses, phone service, and app fees all reduce your taxable income. Working with a tax professional who understands rideshare work can save you money and help you avoid mistakes.
Insurance requirements and what's covered
Your personal auto insurance almost certainly does not cover you while you're driving for Uber. Most personal policies exclude commercial use. You need either a commercial auto insurance policy or a rideshare insurance policy. Rideshare policies are cheaper and are designed for drivers like you — they typically cost $10 to $25 per week depending on your location and coverage level.
Uber provides some insurance coverage while you're actively on a ride, but it has limits and doesn't cover your vehicle damage in all situations. The coverage applies only after a passenger is in your car; if you're driving to pick someone up, you're not covered by Uber's policy. Your own insurance must fill that gap.
Check with your insurance company about rideshare policies before you start driving. Some insurers offer them; others don't. If your current company doesn't, you can shop for a rideshare policy from another insurer. Having the right insurance protects you financially if you're in an accident.
Typical earnings and how they vary by location
What you earn depends on where you drive, what time of day you work, and how many hours you put in. Cities with high demand and limited drivers pay more per ride. Rural areas and small cities typically pay less. Driving during rush hours and late nights usually brings higher fares because demand is higher and surge pricing kicks in.
Earnings also fluctuate week to week based on local events, weather, and seasonal changes. A concert or sports event in your city can create a surge in demand. Bad weather can do the same. During holidays, demand often drops because fewer people are traveling.
You can see your earnings in the Uber Driver app after each trip. The app shows you what you earned, Uber's commission, and any tips. Over time, you'll develop a sense of which times and locations are most profitable in your area.
Frequently Asked Questions
Do I need to own my car outright to drive for Uber?
No. Your car can be financed, leased, or owned. If you lease or finance, check your agreement — some prohibit commercial use. You'll need to show proof that you're allowed to use the vehicle for Uber before your account is approved.
What happens if I get into an accident while driving for Uber?
Report it to Uber through the app immediately. Uber's insurance may cover damage depending on whether you had a passenger in the car at the time. Your own rideshare insurance will also cover you. Contact both your insurance company and Uber to report the accident and start a claim.
Can I drive for Uber and other rideshare companies at the same time?
Yes. Many drivers use multiple apps to maximize earnings. You can have the Uber app and other rideshare apps open simultaneously and accept rides from whichever offers the best fare. Just make sure your insurance covers all the services you drive for.
How long does it take to get approved as an Uber driver?
The background check typically takes three to five business days. Vehicle inspection can happen the same day you submit your documents or within a few days. Once both are approved, you can start driving immediately.
What if Uber deactivates my account?
Uber can deactivate your account for violations of their driver policies, such as low ratings, canceling too many rides, or safety violations. If this happens, Uber will notify you and may allow you to appeal. You can contact Uber support to understand why your account was deactivated and whether you can reactivate it.