In light of stagnant wages and increasing living costs, more and more people are exploring side gigs as a way to supplement their income. But the potential downsides can be scary: What if you get caught driving after curfew? What if someone abducts you and threatens to kill you unless you keep driving for Uber?
There’s also the risk that your car gets so damaged from all the driving that it turns into a piece of junk that you cannot even sell off. Driving for Uber can seem like a perilous undertaking, but for the right person and in the right circumstances, it can make a lot of financial sense.
Here are 10 reasons why you might want to drive for Uber instead of some other side gig:
You have a car that’s fully depreciated.
If you have a car that’s fully depreciated, then driving for Uber can be a great deal. If you have a car loan, you’re probably paying $300 per month or more just to keep the car. Driving for Uber could easily turn a negative cash flow situation into a positive one, depending on the amount you make from Uber driving. Even if you don’t have a car loan, you’re probably still paying a lot more per month for car ownership than you’ll make driving for Uber. If you drive for Uber in a city, you’ll also be able to deduct all the costs of maintaining and fueling your car.
You don’t have any full-time work.
If you’re currently out of work, driving for Uber can help you get back on your feet. It’s also a good way to keep in shape and make friends with other rideshare drivers. If you’re currently driving for Uber, it can also help you earn enough to cover your rent until you get another job.
But Uber driving while unemployed comes with a few caveats: You must be in a city where you are eligible to drive. You must pass Uber’s background check and you must have access to a car that meets Uber’s specifications.
You have terrible credit and are currently paying an arm and a leg for your car.
You might be paying for a car that is worth less than what you owe on it. You might have a car payment that is so large that you can’t even afford a car loan for another car. When that’s the case, driving for Uber can help you pay off your car loan and get a different car with lower monthly installments.
You can also drive while you are still making payments on your current car. This is called “buy by the mile”; it’s like a car lease, but it’s paid to yourself.
The cost of owning and maintaining your own car is more than what you earn from driving.
If the cost of owning and maintaining your own car is more than what you earn from driving, you might want to consider driving for Uber. There are many different types of costs to consider when deciding if you should drive for Uber.
What is the cost of owning and maintaining your car? If your car is worth more than what you owe on it, then it’s costing you money to own it. If you have bad credit, you might also be losing a huge amount to pay for the car loan. What is the cost of your car insurance? If you drive for Uber, the expense for your car insurance can be used to file for tax returns. Same goes for your fuel expenses.
New car will be even more expensive.
If you’re planning to buy a new car, you might want to consider driving for Uber first. If you buy a new car with cash, you’ll be shelling out a lot of money. But if you drive for Uber, you can earn enough to pay off a significant portion of the cost of your new car. You’ll also be able to deduct the cost of fuel, maintenance, and car insurance from your taxes, which you can’t do with cash. Driving for Uber for a few years, you’ll have a good idea of what your car is truly worth.
It’s currently tax season, so you’ll get a tax deduction.
If you’re like most people, you’ve been busy trying to find extra money to pay all the taxes that you owe. But if you’re driving for Uber, you’ll be able to deduct all the costs of owning and maintaining your car, as well as the cost of fuel, from your taxes. Depending on how much you earn from Uber driving, you might even be able to reduce the amount of taxes you’ll have to pay next year.
Over hundreds of gig workers have saved $35,000 in taxes last year! With MyGigsters help you can double your tax savings too.
There’s less risk of being fired.
Most people earn significant income from a job, but they are at the whim of their employer. If the company goes out of business or decides to downsize and lay off staff, the employees in the most precarious position are those who don’t have another source of income. That’s not the case for those who earn money on the side via a gig like driving for Uber. If Uber decides to fire all their drivers, or if the company goes out of business, you will still have another source of income.
You’ll have more flexibility in your work schedule.
Most traditional employees work according to their employer’s schedule. If they want to take a vacation or sick day, they have to ask their employer in advance. They may also be required to work certain hours and on certain days of the week.
Driving for Uber is bound to have certain requirements, but you’ll have a lot more flexibility in your work schedule. You can work when you want and as much or as little as you want.
You’ll have more freedom to choose where you drive.
Most traditional employees are required to drive to the office and work from there. They may also be required to work from home or visit clients in other locations. Driving for Uber will have some requirements about where you drive, but you’ll have more freedom to choose where you pick up passengers from, especially during surge hours, when different places have different crowds.
You’ll have more freedom to choose how you drive.
Most traditional employees have to follow a strict set of rules when they work. They may even have to wear a uniform and follow a certain schedule.
Driving for Uber will have certain rules and regulations, but you’ll have more freedom to choose your own comfort, safety, boundaries and preferences while on the road.
You’ll have more freedom to choose your passengers.
You’ll have more freedom to choose your passengers if you drive for Uber than if you work at a traditional job. A traditional job will put you in contact with all sorts of people, including those you don’t want to talk to.
You will actually be appreciated to put your own safety first and be mindful what kind of passengers you are entertaining. You are even encouraged to report any unpleasant incidents on the platform!
There are less restrictions on how you can earn.
There are many restrictions on how you can earn money from a traditional job. You can’t sell items in your office, for example, you can’t sell items to customers you come into contact with during your hours of work.
Driving for Uber will have some restrictions on factors like payment methods but you can put your side business on display and attract customers while you are dropping them off!
You’ll have more freedom to choose your car.
There are strict rules that govern what you can drive to work in a traditional job. You may be allowed to drive a sedan or a pickup truck, for example. You may not be allowed to drive anything else.
Driving for Uber will have some requirements about the safety and quality of the car you drive, but there are several options available when it comes to choosing the model or type of rideshare vehicle. Check out how you can choose the perfect car for your rideshare gig!
