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Harry here. Today, RSG senior contributor Christian Perea shares an infographic around the hidden costs of driving for rideshare services like Uber and Lyft.
It’s easy for rideshare drivers to focus on the income they make every day but in this line of work, there are a lot of hidden costs when you drive for services like Uber or Lyft. And if drivers don’t pay attention to the burdens of being self-employed, they could be in for a steep (and expensive) learning curve.
Yet all of these extra responsibilities aren’t advertised when signing up to haul people or burritos around in your Prius. Most companies advertise high hourly amounts that are often unrealistic and never take into account expenses. As a driver and business owner though, you need to track everything from mileage to knick knacks that you buy for your car.
If you want to simplify your rideshare finances we recommend QuickBooks Self-Employed. Check them out if you want to get organized by keeping all of your rideshare numbers in one place. Using our link will get you the first 30 days free and will save time and money when it comes to staying on top of your rideshare finances.
Car Costs and Mileage Estimates: How Much Does It Really Cost To Be A Rideshare Driver?
Tax Estimates: Taxformcalculator.com
Healthcare Costs: Covered California
Uncover Your Hidden Costs
We couldn’t cover everything in this infographic but it’s important that you have an accurate picture of what’s going on with your finances if you plan on making it in this business long term. Even if companies aren’t upfront about the hidden costs of driving, they are still very real. Drivers who refuse to learn will be “taught” when these costs catch-up to them and either force them into more debt or to stop driving altogether.
There are lots of drivers who have taken the right steps to tracking their income AND expenses and are able to make it work though. So if you want to keep all of your rideshare numbers in one place, you can use our link to get a free 30 day trial of QuickBooks Self-Employed.
Drivers, what have you found as far as hidden costs when it comes to driving?
-Christian @ RSG