7 things every uber driver needs to know ......2017/04/07 · 7 things every uber driver needs to...

7 THINGS EVERY UBER DRIVER NEEDS TO KNOW

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Contents

Table of Figures ................................................................................................................................................ 4

Welcome .......................................................................................................................................................... 5

Being a Rideshare Driver .................................................................................................................................. 5

Driving for Uber – Signing Up ........................................................................................................................... 5

1. Keep a Log Book ....................................................................................................................................... 7

Download the Rideshare Guy Driver Log ..................................................................................................... 7

Using the Rideshare Guy Driver Log ............................................................................................................. 7

Business Percentage Calculation .................................................................................................................. 8

2. Get a Phone Mount .................................................................................................................................. 9

Suction Cup Mount ...................................................................................................................................... 9

Ventilator Mount ......................................................................................................................................... 9

3. Learn How to Use the Partner App ........................................................................................................ 10

4. Get an ABN and Register for GST ........................................................................................................... 13

Register for GST .......................................................................................................................................... 13

Get an Australian Business Number........................................................................................................... 13

5. Record Your Income and Expenses ........................................................................................................ 14

Download the Spreadsheet ........................................................................................................................ 14

Enter Your Business Percentage ................................................................................................................ 14

Select the Current Quarter ......................................................................................................................... 15

Enter Your Uber Income ............................................................................................................................. 15

Enter Your Expenses ................................................................................................................................... 16

Expenses That Include GST ..................................................................................................................... 16

Expenses That Exclude GST .................................................................................................................... 16

Your Profit/Loss and GST Payment ............................................................................................................ 17

6. How to Get and Protect Your Good Rating ............................................................................................ 18

7. Get Fully Insured .................................................................................................................................... 20


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Types of Insurance ..................................................................................................................................... 20

Compulsory Third Party .......................................................................................................................... 20

Comprehensive ...................................................................................................................................... 20

Uber Partner Insurance .......................................................................................................................... 20

Third Party Rideshare Insurance ............................................................................................................ 21


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Table of Figures

Figure 1 Driver Log Download Button .............................................................................................................. 7

Figure 2 Using the Vehicle Log to Record a Business Trip ................................................................................ 8

Figure 3 Using the Vehicle Log to Record a Private Trip .................................................................................. 8

Figure 4 Transfer Business % to Income & Expenses Spreadsheet .................................................................. 8

Figure 5 Kenu Airframe + ................................................................................................................................. 9

Figure 6 Tap the Partner App ......................................................................................................................... 10

Figure 7 Slide to Go Online ............................................................................................................................. 10

Figure 8 Tap to Accept Ride Request ............................................................................................................. 10

Figure 9 Navigate to Rider .............................................................................................................................. 10

Figure 10 Slide to Start Trip ............................................................................................................................ 10

Figure 11 Tap Driver’s Name .......................................................................................................................... 10

Figure 12 Navigate to Destination ................................................................................................................. 11

Figure 13 Slide to Complete Trip .................................................................................................................... 11

Figure 14 Tap to Drop Off Rider ..................................................................................................................... 11

Figure 15 Rate Your Rider .............................................................................................................................. 12

Figure 16 Slide to Complete Rating ................................................................................................................ 12

Figure 17 Wait for Your Next Ping .................................................................................................................. 12

Figure 18 Download Income and Expenses Spreadsheet .............................................................................. 14

Figure 19 Enter Expenses % from Log Book ................................................................................................... 14

Figure 20 Select the Current Quarter ............................................................................................................. 15

Figure 21 Entering Your Uber Income ............................................................................................................ 15

Figure 22 Enter an Inc-GST Expense............................................................................................................... 16

Figure 23 Enter an Ex GST Expense ................................................................................................................ 16

Figure 24 Spreadsheet Calculates Profit/Loss and GST.................................................................................. 17

Figure 25 Your Driver Rating .......................................................................................................................... 18


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Welcome

First, thank you for subscribing to our e-mail list! As a welcome gift, we wanted to send you this super-

helpful guide for getting started as a rideshare driver. We know a lot of you reading this may be new to

our community, but even if you’re not, this guide is full of awesome content that will help experienced

drivers just as much as the newbies.

And if you ever have any questions about anything, feel free to e-mail us at

[email protected]. We do read and respond to every single e-mail that we get, so if

there’s anything you want answered, just let us know!

Being a Rideshare Driver

We’re not sure what you've heard about being a driver, but here's the truth: it probably isn’t

going to make you rich. But there is still a lot of opportunity out there if you are dedicated to

becoming a great driver.

In our minds, the best part about being a driver is the flexibility that it affords – you can literally flip

on the app at any time and turn it off whenever you want. But if you really want to maximize

your earnings, you’ll need to start thinking about when and where you drive.

The main goals of our site are to help drivers become better at what they do, have fun driving

and earn more money by working smarter, not harder. If you want to make above-average money

as a driver, then you have to be willing to put in the hours to master your craft. You cannot

expect to do the bare minimum and earn a ton of money. That’s not how life works, and it’s

definitely not how rideshare works either.

So, if you’re ready to hop on this journey with us, all you need is a smartphone, a car and a great

attitude (well, a great attitude isn't a requirement, but it will definitely help). Let's go!

Driving for Uber – Signing Up

Uber is available in hundreds of cities globally, and they’ve signed up thousands of drivers in

Australia.

You need:

• a current full (not probationary) driver’s licence and you must be 21 or over

• a car less than 10 years old, in excellent condition with 4 or more doors

• a clean driving record and be able to pass a police background check

• another form of id, such as passport or birth certificate

• a medical examination (download the form from the site)

• a vehicle safety inspection (Uber will give you a list of authorised inspectors and pay for the

inspection

• to be able to scan your documents if you want to complete the entire process online.

mailto:[email protected]


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In some states (Queensland is one) you also need a Driver’s Authorisation (DA). Uber will tell you how to

download the required form.

The DA authorises you to act as a rideshare service, just like a taxi or limousine service. You will get a

card which, just like a driver’s licence, you are required to carry whenever you are offering a driveshare

service.

The Uber sign-up process will tell you how to get the DA form and submit it and also the medical form

that has to accompany it.

TIP: Uber will suggest local doctors who are experienced with completing the medical that needs

to accompany the DA. In our experience, you are better off going to your own doctor who knows

your medical history. There’s a fixed cost, so you’re no worse off.

Please feel free to use our link to sign up:

https://www.uber.com/a/join?invite_code=f57uf678ue#

There is some anecdotal evidence to suggest that Uber looks more favorably on applications that are

referred from existing drivers and, in addition, you’ll be helping us to continue to bring you valuable

content.

https://www.uber.com/a/join?invite_code=f57uf678ue


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Now that you’ve signed up and been accepted as an Uber driver, here are 7 things you need to know.

1. Keep a Log Book

There are a number of different ways of working out your tax deductible expenses, but the only one

worth considering is the log book method.

You keep a log of your trips for 90 consecutive days, indicating for each trip whether it was private or

for the purpose of earning an income. All your Uber driving, including waiting for your next ping, is for

the purpose of earning an income.

The log is valid for 5 years and must be available for inspection by the ATO if requested.

The percentage of business use (so business kilometres x 100 divided by total kilometers) is what you

apply to expenses, such as fuel, service, new tyres, depreciation etc. in order to reduce your income tax.

Remember that the log book is totally under your control. Your aim is to minimise your vehicle’s private

use and so maximize how much you can claim for business use. If you have two cars, use the other one

for private use as much as possible. Try walking or cycling instead of taking the car short distances.

You’ll get health benefits too!

Start the log with your first Uber trip.

Download the Rideshare Guy Driver Log

At Rideshare Guy, we’ve created an Excel spreadsheet that takes all the hard work out of keeping a log

book. You simply enter your end odometer reading and whether it was business (Uber) or private. The

spreadsheet keeps a running calculation of the business percentage.

Download the spreadsheet here:

http://rideshareguy.com.au/income-and-expenses-spreadsheet/

Scroll down the page until you see the button

Figure 1 Driver Log Download Button

and follow the instructions.

Using the Rideshare Guy Driver Log

You’ll need Excel to open the spreadsheet. Here’s how to use it:

Enter the odometer reading at the start of the trip and at the end of the trip. The kilometres travelled

are calculated and shown automatically in the Trip column.



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Tomorrow’s date and start kilometres are shown on the next line to save you entering them. They can

be overwritten if necessary.

Enter a Y in the Uber column to confirm it was an Uber trip. The business percentage is calculated and

shown automatically.

Figure 2 Using the Vehicle Log to Record a Business Trip

For a private trip, simply don’t enter the Y in the Uber column but enter the purpose of the trip.

Figure 3 Using the Vehicle Log to Record a Private Trip

Remember that you must keep the log book for 90 consecutive days and it stays valid for 5 years.

This doesn’t mean that you have to have an entry for every day. If you don’t drive anywhere on a given

day, don’t enter anything. Change the automatically created date to the next one you actually drive on.

Business Percentage Calculation

Figure 4 Transfer Business % to Income & Expenses Spreadsheet

The business % that the spreadsheet calculates can be applied to motor vehicle expenses such as fuel,

vehicle service, cleaning, car lease (if applicable) or depreciation and interest (if applicable) so it’s in

your interest for this number to be as high as possible.

The business % can be entered into our Income and Expenses spreadsheet to get the percentage of

expenses claimable automatically calculated. See Record Your Income and Expenses on page 14.


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Having to pick up your phone and look at it while driving a passenger, whether it’s for navigation or to

accept the next ride, or whatever, is a really bad look, as well as being illegal in most jurisdictions. So,

our next Must-Do is:

2. Get a Phone Mount

The type of phone mount you need depends on your car as well as your personal preferences.

The essentials are:

• You must be able to glance at it without taking your eyes totally off the road, so position is

important

• You must be able to touch it firmly (for example, to accept your next ride while completing the

current one) so stability of the mount is also important.

Suction Cup Mount

Sam uses a suction cup windscreen mount, which allows him to position the phone at eye level.

Ventilator Mount

Phil’s car has a steeply raked windscreen, so he has opted for a ventilator mount.

Ventilator mounts have four flexible prongs that allow the phone to be fitted into one of the car’s

dashboard ventilators in either a portrait or landscape orientation.

There are two methods of attaching the phone to the mount – magnetic or spring loaded clamp.

With the magnetic method, you attach a metal plate either to the back of your phone or to the inside of

your phone’s case. The mount itself has a strong magnet, so you attach the mount to your ventilator

and stick your phone magnetically to it.

With the spring loaded clamp method, one side of the mount has the prongs to attach it to the vent and

the other side has a clamp that you open, insert the phone and the spring then clamps it tight.

Phil has tried both and prefers the spring loaded clamp. He uses a Kenu Airframe + to accommodate his

iPhone 7.

Figure 5 Kenu Airframe +


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The very first time you pick up a rider can be pretty scary.

Be totally confident by totally understanding the Uber partner app before using it live.

3. Learn How to Use the Partner App

Figure 6 Tap the Partner App

Figure 7 Slide to Go Online

Figure 8 Tap to Accept Ride Request

Figure 9 Navigate to Rider

Figure 10 Slide to Start Trip

Figure 11 Tap Driver’s Name

Notes:

1. Don’t tap the NAVIGATE button. Navigation (image and voice) will start automatically.

2. The START TRIP button will appear automatically when the app detects that you’re at the pickup

point (pin drop). Sometimes this doesn’t occur. Your rider is getting into the car but you don’t see

how to start the trip. Just tap the driver’s name. Then either the START TRIP button will appear or

the CONFIRM YOU’VE ARRIVED button. Slide it and then the START TRIP button will appear.


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3. If you believe that you’re at the pickup point but your rider isn’t there, tap the person icon next to

their name. You’ll have the opportunity to contact them by text or phone. Note that Uber

obfuscates phone numbers. You will not see your rider’s real phone number and they will not see

yours.

Figure 12 Navigate to Destination

Figure 13 Slide to Complete Trip

Figure 14 Tap to Drop Off Rider

Notes:

1. As soon as you swipe START TRIP, navigation to your destination will commence.

2. If your passenger wants you to divert on the way, perhaps to pick up someone else, you don’t have

to do anything with the app. It will calculate the fare according to the distance actually travelled

and the time actually taken.

3. If where you’ve stopped to drop off your rider corresponds to the App’s destination point, the

COMPLETE TRIP button will automatically appear. If not, tap the rider’s name and it will appear. Then

slide it to complete the trip.


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Figure 15 Rate Your Rider

Figure 16 Slide to Complete Rating

Figure 17 Wait for Your Next Ping

Notes:

1. If another ride request came in before you completed the current trip, and you accepted it,

navigation for your new ride will commence as soon as you complete the old trip.


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The ATO has ruled that if you do any rideshare driving, you MUST register for GST and submit a

Business Activity Statement. This is not optional.

4. Get an ABN and Register for GST

Before you can register for GST, you must get (or already have) an ABN (Australian Business Number).

You can get an ABN as any business entity, sole trader, partnership or private company. Get your

accountant’s advice to find out which entity suits your specific circumstances.

From the ATO website:

You must register for GST if:

• your business or enterprise has a GST turnover (gross income minus GST) of $75 000 or more

• your non-profit organisation has a GST turnover of $150 000 per year or more

• you provide taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi

• you want to claim fuel tax credits for your business or enterprise.

Register for GST

You can register for GST at this website address:

https://www.ato.gov.au/Business/GST/Registering-for-GST/

Get an Australian Business Number

If you don’t already have an ABN, you can get one here:

https://www.business.gov.au/Info/Plan-and-Start/Start-your-business/Business-and-

company-registration/Register-for-an-Australian-Business-Number-ABN

https://www.ato.gov.au/Business/GST/Registering-for-GST/

https://www.business.gov.au/Info/Plan-and-Start/Start-your-business/Business-and-company-registration/Register-for-an-Australian-Business-Number-ABN

https://www.business.gov.au/Info/Plan-and-Start/Start-your-business/Business-and-company-registration/Register-for-an-Australian-Business-Number-ABN


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It is essential that you record your Uber income and all your driving related expenses from Day 1 so that

you can calculate your profit or loss and your GST obligations accurately.

Note that your driver related expenses start with your application to become an Uber driver and

include the cost of your medical examination, the DA application fee (if applicable) and so on. Don’t

wait until you start driving!

5. Record Your Income and Expenses

At Rideshare Guy, we’ve created an Excel spreadsheet that takes all the hard work out of recording your

income and expenses. You enter your Uber income and all your driver related expenses as either an ex-

GST expense or an inc-GST expense. The spreadsheet calculates your profit or loss and the GST you

owe.

Download the Spreadsheet

Download the spreadsheet here:


Scroll down the page until you see the button

Figure 18 Download Income and Expenses Spreadsheet

and follow the instructions.

You’ll need Excel to open the spreadsheet. Here’s how to use it:

Enter Your Business Percentage

Figure 19 Enter Expenses % from Log Book



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The first thing you need to enter is the percentage of your driving to be attributed to income

production. If you are using our logbook spreadsheet (see Keep a Log Book on page 7) this is calculated

automatically for you.

Don’t worry if you haven’t completed the full 90 days of the logbook yet. Just take a guess at the

probable number and replace it with the real one when you have it. Your figures will be updated

automatically.

Select the Current Quarter

Figure 20 Select the Current Quarter

The spread sheet has 4 sections, one for each of the BAS reporting quarters.

The first quarter is July to September.

The second quarter is October to December.

The third quarter is January to March.

The fourth quarter is April to June.

Select the current BAS reporting quarter.

Enter Your Uber Income

Figure 21 Entering Your Uber Income

The Uber income you enter must be the total of what Uber pay you plus their commission. You can find

out the Uber commission by going to their website and downloading your partner invoices.

Enter this amount in the Uber column under Income. The GST is calculated for you.


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Enter Uber’s commission in the Amount column under Ex GST under Expenses.

Enter Your Expenses

Expenses That Include GST

Figure 22 Enter an Inc-GST Expense

Most of your expenses will include GST. For example, fuel, vehicle service, smart phone, cleaning, new

tyres etc.

It’s essential that you enter these in the Inc GST section under Expenses. This is because the GST

component reduces the amount of GST that you have to pay on your BAS.

For most expenses, you can only claim the percentage attributed to business, as calculated from your

log book. See Keep a Log Book on page 7. Simply enter Y in the Apply Log column. Don’t enter the Y if

the expense can be totally attributed to business. For example, you parked in the short term carpark at

the airport while waiting for an Uber ride.

Expenses That Exclude GST

Figure 23 Enter an Ex GST Expense

Some expenses don’t include a GST component. Examples are:


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• Uber commission (because Uber isn’t an Australian company

• Your vehicle’s depreciation (if it’s owned outright or financed through a chattel mortgage)

• The interest component of your repayment under a chattel mortgage.

Note that you don’t apply the log % to Uber commission because it’s 100% related to producing

income. However, you will need to enter the Y in the Apply Log column for other expenses.

Your Profit/Loss and GST Payment

Figure 24 Spreadsheet Calculates Profit/Loss and GST

This section to the upper right of the spreadsheet shows the profit or loss and GST obligation calculated

from the income and expenses that you have entered.

It’s likely that you’ll make a paper loss on your Uber business, but this is because you are able to claim

vehicle related expenses that you otherwise would not. This loss can be used to offset your taxable

income. However, you should always seek your accountant’s advice on such matters.

The GST amount shown in the Profit column is the amount you have to remit to the ATO on your

quarterly BAS. It’s $62.41 in the above example.

If the GST amount were shown in the Loss column, it would be GST the ATO owes you. This is highly

unlikely, however.

You can watch a video showing how to complete the spreadsheet here:




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In the Uber world, drivers get to rate riders and riders get to rate drivers.

You can see your current rating in the app at any time.

Figure 25 Your Driver Rating

When you get a ping from a rider wanting a lift, you can see their rating and when you accept, they can

see your rating.

Ratings are given by assigning from 1 to 5 stars, so a perfect rating is 5.0.

Uber can remove drivers with consistently poor ratings.

So, for all these reasons, you need to know:

6. How to Get and Protect Your Good Rating

There are some obvious things you can do, but it’s worth listing them here:

1. Keep your car scrupulously clean, inside and out. Either pay to have it cleaned regularly and enter it

as an Inc GST expense in your Income and Expenses spreadsheet (see Expenses That Include GST on

page 16) or do it yourself as often as required.

2. A (tax-deductible, of course) purchase of a small vacuum cleaner that can be run off your car’s 12V

outlet is a wise investment. Then, if a rider messes your car (think dirt or leaves on the carpet, mud

on the seat) you can give it a quick clean before picking up your next ride.

3. Dress appropriately. In some areas, this may mean shorts and tee shirt, in others slacks or skirt and

business shirt. It never means:

a. Singlet and thongs

b. Pajamas

c. Military fatigues

and always invest in a good deodorant.

4. This seems obvious, but don’t criticize your rider. Phil picked up a rider who told him she’d had an

Uber driver who complained bitterly that it was such a short trip. What’s the point? You’ve


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accepted the ride, so you may as well discharge it pleasantly. There’s no chance she gave that driver

a 5-star rating.

5. Drive carefully and courteously. Your rider doesn’t want you to display your Le Mans driving skills.

Stick to the speed limits, give way to other vehicles, be courteous to pedestrians crossing in front of

you.

6. Chat pleasantly with your rider if it appears that’s what they want but don’t impose yourself if they

prefer to be left alone. Quite often, a group of passengers will prefer to talk among themselves. It’s

up to them if they want to bring you into the conversation.

7. Be familiar with local landmarks, restaurants and events. Strangers to your area will often seek

advice on such matters.

These are less obvious, but definitely worth doing:

1. Keep a fresh supply of mints in the car and keep them where they can be seen, such as in a jar

wedged into your car’s centre console cup holder. Make riders aware that they are welcome to help

themselves.

2. Keep a couple of phone charging cables on hand that can be plugged into your car’s 12V outlet.

Then if you hear a rider using their phone and mentioning they are nearly out of charge, you’re on

hand with the solution.

And, finally, the best tip of all:

At the end of the ride, assuming everything went well, don’t ask for a good rating, but let your rider

know that you are giving them a good rating. As you swipe the Complete Trip button, say something like

“I’ll just finish this off and give you your 5 Stars”. For most people, this creates a moral obligation for

them to give you 5 Stars in return.

Some people won’t know what you mean. Just explain briefly that Uber drives and passengers get to

rate each other. It keeps us all on our toes 😊


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Anyone can have an accident where people are hurt and/or property is damaged.

It doesn’t even have to be your fault.

7. Get Fully Insured

Types of Insurance

Compulsory Third Party

In all states of Australia, you must have CTP (Compulsory Third Party) insurance and it comes with your

vehicle registration. In some states, you can choose your insurer and in others there's only one. It

doesn't make any difference. The policies are standard, at least within a state.

CTP insurance covers the vehicle owner and any person who at any time drives the vehicle, against

claims for liability in respect of the death or injury to other people caused by the fault of the owner or

driver.

It covers the cost of all reasonable medical treatment for injuries received in the accident.

It does not cover motor vehicle or property damage. For that, you need Comprehensive Motor Vehicle

Insurance.

Comprehensive

As the name implies, comprehensive motor vehicle insurance covers (more or less) everything that can

be damaged in an accident, including your own vehicle and the other driver's vehicle (or drivers'

vehicles in a multi-vehicle accident) along with other property damage.

There are many insurance companies competing for your business in this area, and it pays to shop

around. Compare what's covered, what can cause a claim to be rejected, how much the excess is and

check out the claims experience of existing customers.

Comprehensive insurance is a requirement for Uber drivers. Before Uber will accept you as a driver,

they need to sight your current certificate of cover.

Be aware, though, that many comprehensive insurance policies will specifically not cover you if you

have an accident while working as a rideshare driver.

This can have an unfortunate follow-on effect. If you made a claim and it was rejected on the grounds

that you were providing a rideshare service at the time, then the next time you apply for insurance, you

will have to answer the question as to whether you've previously had a claim rejected with "Yes". It's

then quite likely that your application for insurance cover will be rejected,

Uber Partner Insurance

Uber provides its partner drivers with insurance. Unfortunately, they are a little vague on specifics. This

is from the Uber website:


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... all Uber ridesharing driver-partners in Australia are also protected by at least AUD$20,000,000

contingent coverage for bodily injury to third parties, as well as property damage to road users outside

the uberX vehicle. That coverage is provided by CGU Insurance Limited (AFSL 238291). CGU is a division

of Insurance Australia Group (IAG) and has a 160 year history.

This means that if, in the unlikely event of an accident, a ridesharing driver-partner’s CTP insurance or

third party property insurance is exhausted or does not apply for some reason, passengers, pedestrians,

other drivers, and the community at large can rest assured knowing that ridesharing partners remain

covered by a robust first-class Australian insurance policy. Note, a claim excess does apply and there is

no insurance cover for riders’ personal property.

This doesn't tell us when the insurance applies. Is it in force while the driver app is on, or only while a

trip is in progress? If the latter, then I'm not covered while I'm cruising around waiting for a rider

request or even while I'm heading to the pickup point. Yet it's possible that my comprehensive

insurance also doesn't cover me, because from their point of view, I'm driving for Uber during those

times. So it's a really, really important question.

In the first paragraph from the Uber website above, does the phrase "bodily injury to third parties"

mean that bodily injury to you, the driver, isn't covered? A lawyer would probably argue that it's exactly

what is meant. Also, what defines "property damage to road users outside the uberX vehicle"? Does it

mean other drivers or pedestrians using the road at the time? What if I'm backing out of my rider's

driveway and damage their letterbox? Or run over their cat? What if it's someone else's driveway that

I'm using to make a U-turn? And why "the uberX vehicle"? That implies that if I'm driving UberSelect or

UberBlack, or indeed any Uber flavour that isn't uberX, I'm not covered.

In the second paragraph, it mentions that an excess applies but doesn't tell us how much or whether it

depends on anything.

In our opinion, it's all a bit vague.

Third Party Rideshare Insurance

Rideshare insurance is not in addition to your normal comprehensive insurance policy, but replaces it

completely. It is comprehensive insurance that includes unlimited kilometres while driving both

privately and as a rideshare driver.

You can obtain it direct from an insurance company that provides rideshare insurance or you can go to

a broker.

The advantages of working through a broker is that they will typically get you a premium that is $200 -

$300 a year cheaper than if you went direct to an insurance company and, in the unfortunate event of

an accident, they will help you as their client with submitting the claim to the insurer.

You can read more about insurance and even get a quote from a broker by visiting our insurance page:

http://rideshareguy.com.au/rideshare-insurance/

http://rideshareguy.com.au/rideshare-insurance/


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7 things every uber driver needs to know ......2017/04/07 · 7 things every uber driver needs to...

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