Top 3 Money Saving Tips For Independent Drivers

Do you pick up passengers for Uber or Lyft, make deliveries for Postmates or Doordash, visit clients, or otherwise use your vehicle for business purposes? If you do, read on! Here are our top 3 money saving tips for independent drivers to help you save hundreds or thousands of dollars on tax deductions.

Tip Number 3 – Educate Yourself

We’ve done multiple surveys over the last couple years asking independent workers and drivers if they know how tax and deductions work for them? The majority of responses were a resounding “No”.

What that means is pretty clear. Most independent drivers don’t know that they will owe potentially hundreds or thousands of dollars in taxes in April. Approximately 30% of their earnings might go to the government.

However, it’s quite easy to substantially reduce or eliminate what you owe with some simple education (like this blog post on filing taxes on the on-demand economy).

The point is simple, especially if you’re new to being an independent or self-employed worker: Take the time to do a little reading and learn about record keeping and filing taxes. And if you have specific questions, seek help from online forums or discussion groups too!


Tip Number 2 – Keep A Record Of Your Expenses

Here’s a brief overview of expenses you should keep a record because you may be able to deduct them: Car payments, interest on the auto loan, license, title, and registration, fuel costs, maintenance, insurance, mobile phone and charger, wireless plan, and car washes.

If your a rideshare (Uber or Lyft) driver or other independent driver, these costs can become substantial and potentially offset any potential tax owed.

Whether you’re keeping receipts or using an app, the main point is to keep a record and always think about keeping a record of these expenses. The best practice for many independent workers is to get in the habit of entering an expense when you’re filling up at the pump, in the car wash, or otherwise have just made the purchase.


Tip Number 1 – Track Your Mileage

It’s always worth re-emphasizing this because if you do one thing, this would be it: Track your business miles. The reason is that most self-employed or independent workers use the standard mileage deduction when filing taxes ($0.54 per mile in 2016).

If you use an app like SherpaShare for this, you’ll have an online record of all of your trips, including maps of where they took place to use for taxes and to defend against any potential audit in the future.

If you drive 100 miles in a day for business, that’s a $54 deduction right there! You can quickly see how just by tracking miles automatically you can end up deducting thousands of dollars from your taxable income.

Have any other tips you’d recommend to your fellow independent workers? Leave a comment! Want a free trial of SherpaShare to get unlimited mileage, expense, and earnings tracking – and more. Get your 14 day free trial.

How does the SherpaShare Compass App help Uber drivers?

You know those times you’re on the road, just dropped off a passenger, and are wondering where you should go next? Go left, go right, go straight? The Compass App algorithm is powered by millions of real-time and historical Uber pickups to help guide you in the right direction toward your next optimal pick-up area. Think big data meets Uber passenger pick-ups. No more aimless guessing, folks.

Continue reading “How does the SherpaShare Compass App help Uber drivers?”

Uber sells loss making Chinese business to Didi Chuxing and exits China market

As we learned this past Monday, Uber has decided to sell its China operations to China’s largest rideshare company, Didi Chuxing. Didi Chuxing, which is part owned and backed by AliBaba and Tencent and recently received a $1 billion USD investment from Apple had been engaged in a fierce turf war with Uber in China and seems to have won that battle. Continue reading “Uber sells loss making Chinese business to Didi Chuxing and exits China market”

Want more Uber requests? Get in line for an app that powers pickups…

It’s finally coming. We can’t say too much yet except that we’ve been heads down working on this, and are excited to share this with the world soon: A new way to optimize your Uber driving. We’re expecting extremely high driver demand for this and will roll it out on a very selective basis. You can request to get in line now to be one of the first too have access to it starting today by adding your name below.

Continue reading “Want more Uber requests? Get in line for an app that powers pickups…”

Uber moves to end surge pricing; here’s how drivers are responding.

Uber announced last Thursday that they were planning on phasing out Surge completely starting with major cities in the U.S and in India. The app will now show the fare before you embark on your ride rather than at the end. Continue reading “Uber moves to end surge pricing; here’s how drivers are responding.”

How do you choose the best radio station for your passenger?

Guest contributor Mike from Southern California shares his tips on radio play for passengers and what works the best for him. 

Silence is golden, or so they say but, is it really that great when you’re a car with a stranger? If you’re a new Uber or Lyft driver you may not realize just yet how awkward it can be to drive with a passenger only to have neither of you talking. Here’s how having the radio on can not only help give your passengers a great experience but also make your time on the road fly by.

Continue reading “How do you choose the best radio station for your passenger?”

Uber, Lyft and Deliv to partner with Walmart to deliver groceries

Walmart and Sam’s club are going to use Uber, Lyft and Deliv to make last mile grocery deliveries. A plan wil be unveiled in the near future giving details of the partnership. This will be in order to compete with Amazon Fresh and other last mile grocery delivery services. We had written about whether Uber was becoming the new Walmart.. Continue reading “Uber, Lyft and Deliv to partner with Walmart to deliver groceries”

Uber valued at $62.5 billion: receives $3.5 billion cash infusion

Uber has attracted $3.5 billion in funding from Saudi Arabia’s Public Investment Fund, an investment it says will help it expand in both Saudi Arabia and the rest of the Middle East. Continue reading “Uber valued at $62.5 billion: receives $3.5 billion cash infusion”