Thinking about becoming a rideshare driver? Or are you already driving and want to learn more? This guide covers everything you need to know about being a rideshare driver for companies like Uber and Lyft in 2025.
The World of Rideshare Drivers: Key Numbers and Trends
The number of rideshare drivers has grown a lot. As of late 2022, Uber had 5.4 million drivers and delivery people worldwide. The U.S. alone had about 1 million drivers in 2019, and that number has kept growing.
Demand for rideshare is still high. Uber had 156 million users in 2024. Companies like Uber and Lyft are making more money now after things slowed down during COVID-19. Uber’s money earned hit $43.9 billion in 2024, which was an 18% jump from the year before. Lyft’s core business is also getting back on track.
For rideshare drivers, the average pay is around $23 per hour in early 2025. This comes from data that tracks driver earnings. Looking ahead, the future looks big for rideshare services in the U.S. Experts think the number of rides will grow from 3.6 billion in 2024 to 15 billion by 2040. By then, about half of these rides might be in self-driving cars, but human drivers will still be needed a lot.
What It’s Like to Be a Rideshare Driver
Many people are interested in short-term jobs like being a rideshare driver. However, many drivers don’t stay for long. About half of all rideshare drivers stop driving within a year. Even more, about 68% leave within six months. Why? Often, it’s because they feel tired from working too much, or their pay goes up and down a lot. Sometimes, people just drive to make money for a little while.
Even with new self-driving cars showing up in some cities, most drivers haven’t seen big changes in how busy they are or how much they earn. This is still true in major cities in early 2025.
Young people today don’t want to own cars as much as older generations. They see getting around more like a service you pay for when you need it. This idea helps rideshare services grow over time.
Stories from Real Rideshare Drivers
Let’s look at some examples. In Chicago, the number of active rideshare drivers dropped by half during the COVID-19 pandemic. This shows how outside events can really affect the rideshare job market.
You can find many stories online from drivers. On sites like Reddit and YouTube, drivers talk about their experiences. Many like the freedom of setting their own hours and getting paid right away. But they also talk about problems. Pay can change a lot. They don’t get benefits like health insurance. And they worry about their safety.
Some popular YouTube channels feature interviews with drivers. These stories show different views. Some drivers have used rideshare driving to pay off debts or enjoy flexible hours. Others talk about high costs, low tips, and feeling burned out.
Becoming a Rideshare Driver
So, how do you start driving for apps like Uber or Lyft? You need to meet their rules. Usually, you must be at least 21 years old. You need a valid driver’s license. You should have at least one year of driving experience (or three years if you are under 25 for Uber). You also need to pass checks on your background and your car. You can apply online through the company’s website or app. You just upload your documents.
Uber vs. Lyft: Which is Better for Drivers?
Drivers often ask if Uber or Lyft is better. Both have good and bad points. Uber is usually bigger and has more users. This can mean more ride requests for drivers. Lyft often gets better reviews from drivers and sometimes offers more bonuses in certain places. Many drivers actually sign up for and use both apps at the same time. This helps them get more ride requests and make more money.
How Much Can Rideshare Drivers Earn?
In 2024, rideshare drivers in big U.S. cities often made $18 to $26 per hour before paying for anything. But remember, you have to pay for gas, car upkeep, insurance, and taxes out of that. After these costs, drivers usually take home $12 to $18 per hour. How much you earn really depends on where you drive, when you drive, any special offers, and how you manage your time.
“Still working at the same pace, getting the same incentives, and taking as many trips as before…robotaxis haven’t impacted drivers much yet.” — Ryan Green, CEO of Gridwise Analytics, on how new technology isn’t changing things for drivers right now.
What Kind of Car Do You Need?
Both Uber and Lyft have rules about what cars you can use.
- Your car must have four doors.
- It can’t have a damaged or rebuilt title.
- It usually needs to be from the year 2003 or newer (this can change based on the city).
- Your car needs to pass a safety check.
- You must have insurance for your car in your name.
Uber has different types of rides, like UberX, Comfort, and UberXL. These might need newer or bigger cars. It’s best to check the exact rules for your city on the company’s website.
Do Rideshare Drivers Get Benefits?
No, usually rideshare drivers do not get traditional job benefits like health insurance or paid sick days. This is because they are seen as self-employed, not as employees. But in California, because of a law called Prop 22, Uber and Lyft give drivers money for health care and some other limited help. Some other companies also offer benefit plans for people who work gig jobs.
“Half of all drivers quit after a year—many use rideshare as a stop-gap. Burnout is real.” — From The Rideshare Guy, a website about the rideshare industry, talking about why drivers leave.
Is Driving for Rideshare Apps Safe?
Most of the time, driving for rideshare is safe, but there can be risks. Both Uber and Lyft have added safety tools. These include tracking rides as they happen, buttons to call for help fast, in-app recording, and letting drivers and riders rate each other. Drivers should always be careful, like making sure the person getting in the car is the right passenger and staying out of unsafe areas.
What Costs Do Rideshare Drivers Have?
Rideshare drivers have several big costs:
- Gas: This is a large cost, especially if you don’t have a hybrid or electric car.
- Keeping your car in shape: You’ll need money for regular maintenance and fixes.
- Cleaning supplies: Keeping your car clean is important.
- Car insurance: Regular car insurance isn’t enough. You should get special rideshare insurance.
- Taxes: Since you are self-employed, you have to figure out and pay your own taxes.
Tools like Gridwise or QuickBooks Self-Employed can help drivers keep track of their earnings and costs. This helps them see how much they are really making.
“Flexibility is great, but earnings aren’t consistent. Expenses add up fast.” — A common point heard from drivers in online videos and comments.
Can You Drive for Both Uber and Lyft?
Yes, many drivers do. They use both apps at the same time. People call this “multi-apping.” It can help you get more ride requests and earn more money per hour because you don’t have to wait around as much. But be careful when switching between apps while driving. Always pull over or park somewhere safe to manage the apps.
When Are the Busiest Times to Drive?
The times when lots of people need rides and fares are often higher include:
- Weekday mornings (about 7 AM to 9 AM) and evenings (about 5 PM to 7 PM).
- Late on Friday and Saturday nights (about 8 PM to 2 AM).
- Times with special events or bad weather also usually mean more riders.
Driving during these peak times, also called “surge pricing” times, can help you earn more money.
How Rideshare Drivers Handle Taxes
Since rideshare drivers are self-employed, they get a tax form called a 1099. They are responsible for:
- Estimating their taxes and paying them every three months instead of just once a year.
- Paying a self-employment tax, which is about 15.3% of their income for Social Security and Medicare.
- Telling the government about all the money they made and all their business costs.
Using tax software made for gig workers or getting help from a tax professional is really smart. It can help you pay the right amount and find ways to pay less in taxes legally. You can learn more about taxes for the gig economy from the IRS at their Gig economy tax center. Also, watching videos like Rideshare Drivers: How Taxes Actually Work (Uber, Lyft, DoorDash, Etc.) can help you understand the process better. (Click the link to watch!)
What’s Next for Rideshare Drivers?
Young people not wanting to own cars as much will help rideshare and similar services grow. They see getting a ride when they need it as smart.
Human drivers will still be important for a long time, maybe for another 15 years or more. Even as self-driving cars become more common, human drivers will likely still handle about half of U.S. rides by 2040.
The job can be tough, though. Feeling burned out is common because of long hours and not knowing how busy you’ll be. Passengers acting badly and safety are also worries for drivers. Pay can also be a problem for keeping drivers around for a long time.
Conclusion: Driving Rideshare
Being a rideshare driver offers flexibility but comes with challenges. Here’s a quick summary of key things to know:
- Demand is high: More and more people are using rideshare services.
- Pay varies: Expect average hourly pay, but costs like gas and upkeep eat into profits.
- No traditional benefits: You are self-employed, so think about insurance and taxes.
- Safety tools exist: Apps have features to help, but drivers should still be careful.
- Consider both apps: Driving for both Uber and Lyft can help you stay busy.
- Track everything: Keep records of your income and expenses for taxes.
The future of rideshare will include both human drivers and new technology, so demand for human drivers isn’t going away anytime soon.
