For many people, the thought of being a rideshare driver or using their car for some other type of service could be a great option to earn some money. However, some people who start down this path don’t necessarily know what they’re getting themselves into beforehand. So to help you in making this decision for yourself, here are some pros and cons that you’ll want to know about before you decide to become a driver for hire.
Especially for Millenials, the idea of being a driver for hire sounds very intriguing. According to YoungMoneyFinance.com, one of the biggest draws for many people who start driving for a rideshare service is the idea of being their own boss. With this type of work, you generally get out of it what you put into it, meaning that if you work a lot, you can make a lot, and vice versa. Additionally, you don’t need to have any training and have the comfort of driving your own vehicle that you’re already familiar with. With this type of flexibility and the potential to make some really good money, it’s no wonder why so many people have been looking into driving for a rideshare company as a part-time or full-time job.
While there are plenty of reasons why someone would want to drive for a rideshare service, there are also some drawbacks to using this as your form of income. According to Michele Lerner, a contributor to Bankrate.com, one of the biggest cons that people often find pretty soon after starting this line of work is that the money doesn’t roll in like they thought it would. Not only might your fares be fewer and farther between than you might like, but you also need to remember that you’ll be paying for things like gas, maintenance, and likely steeper insurance rates as well. In addition to this, you’ll also be paying taxes as an independent contractor or sole proprietor, which means you’ll be responsible for both the employer and employee portion for taxes like Social Security and Medicare. While you might be able to write some of your expenses off when paying your taxes, this can get complicated and might require you to get additional help with your taxes to ensure you’ve got everything figured out correctly.
Other Driving Options
If you like the idea of being able to drive for work but don’t necessarily want to be driving other people around all the time, there are other driving options available to you. Some of these options include working as a courier, delivering things like people’s takeout orders or groceries, or running other various errands.
If you’re considering being a driver for hire in one capacity or another, consider the pros and cons mentioned above before you decide on this career path for yourself.