COULD YOU DRIVE FOR UBER IF YOU WANTED TO?
– You must be at least 21,
– hold a full licence without recent high range offenses,
– drive a registered, insured, four door car that is no more than 9 years old
– pass a criminal history check
Uber driving is now legal in the Australian Capital Territory and New South Wales, and is on the way to becoming legal in Western Australia, with other states and territories likely to follow.
So if you own a car and need some extra cash, is it something you may wish to consider?
Uber claims that drivers can expect to earn more than $30 per hour and various drivers claim to earn anywhere from $30 to $40 per hour, or even $50 late on Friday or Saturday nights in major cities.
But these figures don’t take account of Uber’s commission or any costs. These costs include;
- Uber’s 20% commission***UPDATE*** From the 24th of April, all new Uber drivers will pay a 25% commission (they call it a service fee) to Uber rather than 20%. Existing drivers (as of the 24th) will continue to pay 20%.
- tolls (which you don’t get reimbursed for when travelling to or from a job)
- additional car maintenance and depreciation (from the higher mileage)
- extra insurance costs (see below).
Okay so what’s the low-down? According to the drivers who’ve done their math, you should assume around $10 per hour in costs so if $20 per hour is of interest (or possibly $30-$40 late on weekends) then it may be worth your while. It’s no way to get rich but could well be a useful top-up, especially if you need some extra cash to pay the rent/mortgage or save for a holiday.
What else do you need to know?
According to the Australian Taxation Office you must also register for an ABN and charge GST … and of course pay tax. If the paperwork bothers you, you might want to consider checking out Partner People which caters specifically for ‘new economy’ work such as ‘on-demand, share, and online work’ like Uber driving or Airbnb hosting.
What about insurance? You will be at risk of having car insurance claims denied if you don’t shift your policy from personal (“3A”) to work related (“3G”) so if you’re thinking of driving for Uber, talk to your insurer first. If your insurance company isn’t helpful then NRMA Insurance has announced that it offers Uber X cover for drivers in NSW, ACT and QLD, with SGIC and SGIO (also part of the IAG Group) offering the same cover in SA and WA respectively
What are your thoughts?
If you’ve had positive or negative experiences driving for Uber, please let us know. Leave a comment below.