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November 10, 2023

Driving Solo: The Ultimate Guide to Be an Independent Driver

Opportunities are revving up like never before in the ride-sharing space.

An independent driver operating their vehicle
Written by

Jennifer Moore

The numbers speak for themselves: In fact, the ride-share market is expected to reach $154.00 billion in 2023, with a projected growth rate of 7.04% through 2027, bringing it to an estimated $202.20 billion. 

Consumer spending data in September 2023 paints a vivid picture: Uber's sales surged by 6% year-over-year, with an average monthly customer spend of $93, a 1% increase year-over-year, and an 11% leap from 2021. Meanwhile, Lyft's observed sales dipped by 3%, with an average spend of $87, 4% lower than the previous year but still 9% higher than in 2021.

So, why is being an independent driver the road to consider? Join us on this journey as we navigate the possibilities, share insider insights, and guide you toward seizing the wheel of your financial future. Whether a side hustle or a full-time gig, the independent driver's seat could be your ticket to success in this thriving industry.

Man driving a car for Uber

Saying goodbye to Uber and Lyft: Your path to becoming an independent driver

The road to becoming an independent driver is enticing, and many are hitting the gas pedal, steering away from traditional ride-hailing giants like Uber and Lyft. What's the buzz about? 

Well, for some, it's all about seizing control of their destiny. Many drivers are drawn to working independently, choosing their own hours, and maximizing their earnings without sharing a hefty portion with a rideshare platform. 

The pros and cons of independence

Becoming an independent driver opens the door to a world of autonomy that starkly contrasts working for companies such as Uber and Lyft. As an independent driver, you are essentially your boss, and it comes with its unique set of advantages and challenges.

The pros

  • Freedom and flexibility: The most apparent perk is the freedom to set your own schedule. You decide when, where, and how long you work, providing unparalleled flexibility.
  • Earnings potential: As an independent driver, you have more control over your income. You get to keep a more substantial portion of what you earn since there are no hefty platform commissions. On average, independent drivers earn around $11 an hour via each service. Here's a quick breakdown: Both Uber and Lyft typically take 20–25% off each trip, which means drivers usually earn about $25 per hour before fees.
  • Business control: You're in charge of your business. You decide which clients to serve, and you can expand and diversify your services as you see fit.
  • Educational requirements: You don't necessarily need a college degree to work as an independent driver. A high school diploma or GED is sufficient for most opportunities. On-the-job learning is common.
  • Minimal entry requirements: Typically, a valid driver's license and a clean driving record are all you need to start. You'll also require your mode of transport, whether it's a car, van, bicycle, or motorcycle.

The cons

  • Income stability: Flexibility can be a double-edged sword. Your income might not always be consistent, as it can fluctuate with demand, seasons, or economic conditions.
  • Business management: As your boss, you need to handle the administrative aspects of your business, including taxes, insurance, and vehicle maintenance.
  • Client acquisition: You're responsible for finding and retaining clients. Marketing and establishing a client base can be challenging.
  • Competitive market: Depending on your location and chosen niche, you may face fierce competition from fellow independent drivers or larger companies.
  • Risk and expenses: You bear the full financial responsibility for your vehicle, fuel, and other expenses. Plus, you may not have the same level of job security as traditional employees.

In summary, becoming an independent driver offers unparalleled freedom and income potential, but it also comes with the responsibility of managing your business. It's a path that suits those who value autonomy and are willing to take on the challenges that come with it.

Steps to transitioning

Embracing rideshare independence is an exciting journey, but it requires careful planning. Here's a step-by-step guide to help you navigate this transition of starting an independent ride-sharing business:

  1. Define your driving niche

First, decide what type of driving you want to do. Will you focus on transporting people or delivering goods? Each comes with its own set of considerations and requirements.

  1. Determine your market strategy

Analyze your local market to identify demand, competition, and pricing. Develop a strategy to position yourself effectively.

  1. Have a competitive advantage

What sets you apart from the ride-hailing giants? It could be exceptional customer service, personalized experiences, or niche expertise. Highlight what makes your service unique.

  1. Combatting driver skepticism

As an independent driver, establishing trust with your clients is essential. Background checks, vehicle inspections, and clear communication can help build confidence.

Tryp Rides was one major issue contributing to driver skepticism in the rideshare industry. Tryp initially positioned itself as a game-changer, promising better earnings and a fairer deal for drivers. However, as the company struggled to gain traction, many drivers were disillusioned and concerned about the industry's credibility. 

Such experiences have made independent drivers more cautious and selective when choosing new platforms or venturing independently. To combat this skepticism, transparency, clear communication, and stringent safety measures are vital for independent drivers. Building a reputation for reliability, trustworthiness, and excellent service can help reassure passengers and overcome skepticism in a post-Tryp era.

  1. Forming your company

Consider the legal structure of your independent driving business, such as a sole proprietorship, LLC, or corporation. Register your business and obtain any necessary licenses or permits.

  1. Vehicle requirements

Your vehicle will become your most significant asset. It's not just about having a car; it's about having the right car. Your vehicle should meet legal standards and the expectations of your riders, who are concerned about their safety and comfort.

In addition to a clean driving record, valid driver's license, and compliance with local regulations, riders will want to know your car includes essential safety features like rear side airbags, traction control, and a reliable anti-lock braking system. Keeping your vehicle up-to-date on warranty work ensures it's well-maintained and ready to deliver top-notch service.

Also, ensuring you can afford your car in the long run is crucial. Vehicle maintenance, fuel, and insurance costs add up. If you want to lower your car-related expenses, consider exploring options like refinancing with RateWorks to secure a more affordable interest rate, helping you maximize your earnings as an independent driver. A well-maintained and comfortable car not only keeps your clients happy but also contributes to your success in the world of rideshare independence.

  1. Insurance and legal considerations

When transitioning to independent driving, it's crucial to understand the insurance and legal considerations that come into play. Rideshare insurance is a specific type of commercial auto insurance tailored for individuals working in rideshare or food delivery services like Uber, Lyft, DoorDash, and Postmates. This commercial insurance form addresses coverage gaps unique to rideshare industry needs.

Typically, rideshare companies such as Uber and Lyft offer insurance coverages like bodily injury liability, property damage liability, underinsured/uninsured motorist coverage, comprehensive coverage, and collision coverage for their drivers. However, as an independent driver, you must ensure that you have the necessary insurance coverage in place to protect yourself, your passengers, and your cargo. 

Consult with insurance experts and familiarize yourself with local regulations to ensure you meet the legal requirements and provide your clients a safe and secure experience.

  1. Marketing your business

Create an online presence through a website and social media. Leverage online advertising and word-of-mouth to attract customers. Consider using SEO tactics to enhance your visibility.

Transitioning to driving solo without Uber and Lyft may present challenges, but it also offers freedom and financial independence. 

With a clear strategy, attention to detail, and a dedication to providing top-notch service, you can find success as an independent driver and carve out your own niche in the world of rideshare independence.

Graphic of someone being an independent driver

Building your clientele

We briefly discussed this topic in the section on marketing your business. Still, it's essential to emphasize that marketing as an independent driver involves more than merely having a website or occasional social media posts. 

Without the backing of apps like Uber or Lyft, independent drivers must take marketing into their own hands. Here are some effective marketing tactics to consider:

  • Website with regular content: Maintain a professional website with informative and engaging content, such as blogs on relevant topics.
  • Mobile-friendly website: Ensure your website is mobile-responsive, providing a seamless user experience for potential clients browsing smartphones. Include an easy-to-use booking feature, allowing clients to schedule rides with convenience and efficiency directly from their mobile devices.
  • Social media presence: Regularly post to engage with potential clients on social media platforms.
  • Online videos: Create videos on platforms like YouTube and TikTok that showcase your unique value proposition and share them on social media for wider reach.
  • Participate in local events: Attend local community events or fairs to introduce your services and connect with potential clients.
  • Networking: Build relationships with local businesses, hotels, and restaurants for potential referrals.
  • Referral programs: Develop referral programs for your current clients to encourage word-of-mouth recommendations.
  • Vehicle wrap for mobile advertising: Use car signs or wraps to promote your services while on the road.

With these strategies, you can effectively market your independent driving business and build a loyal clientele that trusts your services and values your commitment to quality and professionalism.

Managing finances and taxes 

When you shift to independent driving, one significant difference from traditional employment is that money automatically isn't withheld for taxes. It's your responsibility to handle taxes, and it's crucial to manage this aspect effectively.

For those who aren't financially savvy or unsure about handling taxes independently, partnering with a certified professional accountant is a wise move. They can assist in setting up a business bank account, establishing payment arrangements with the Internal Revenue Service and your state's Department of Revenue, and keeping your financial records in order.

Moreover, collaborating with a financial planner can be valuable, especially if you plan to make independent driving your full-time venture. A financial planner can help you set financial goals, ensure that you're making the right decisions for retirement planning, and offer guidance on making the most of your earnings.

Safety measures 

An increasing number of rideshare drivers, delivery drivers, and community advocates are speaking out about the importance of safety in the rideshare and delivery industry. While it's important to stay positive, it's also crucial to acknowledge the potential dangers drivers can face.

Here are some safety measures that drivers can implement to enhance their safety:

  • Stay aware: Maintain situational awareness while on the road and during pickups and drop-offs.
  • Share trip details: Share your trip details with a trusted contact, including your route and estimated arrival time.
  • Secure your vehicle: Keep doors locked and windows up when not in use.
  • Verify passengers: Confirm the identity of passengers before starting a trip.
  • Emergency tools: Carry essential tools like a phone charger, flashlight, and a car emergency kit.
  • Trust your instincts: If a situation feels unsafe, trust your instincts and prioritize your well-being.

These safety measures can help drivers protect themselves from potential risks and ensure a secure experience for both themselves and their passengers.

Vehicle maintenance and upkeep 

Maintaining your vehicle is not just about safety; it's also essential for the smooth operation of your independent driving business. Regular vehicle maintenance can prevent costly breakdowns and ensure you provide reliable service to your clients. 

While this may vary based on the make and model of your vehicle, here's a list of key maintenance tasks and their recommended timings:

  • Oil change: Typically every 3,000 to 5,000 miles.
  • Brake inspection: Every 10,000 to 15,000 miles.
  • Tire rotation: Every 6,000 to 8,000 miles.
  • Fluid checks: Regularly, including coolant, transmission, and brake fluids.
  • Air filter replacement: Every 12,000 to 15,000 miles.
  • Battery check: Every 3 to 5 years.
  • Regular tune-ups: Every 30,000 to 60,000 miles.
  • Tire replacement: As needed, based on tread wear.

Ensuring your vehicle is well-maintained keeps it safe and operational and helps you maintain your professional image and build trust with your clients.

An Uber driver

Dealing with competition

Competition is a constant companion in the rideshare business. To stand out in this bustling market, differentiation is key. Offering personalized and exceptional customer service can set you apart. Implementing transparent pricing, maintaining a clean and comfortable vehicle, and creating loyalty programs for repeat clients can also help you build a devoted clientele. 

Embrace innovative technologies for convenience, such as user-friendly apps or in-car amenities. Being punctual and going the extra mile can differentiate your service and build a strong and loyal customer base.

Your path to freedom as an independent driver 

Becoming an independent driver is an exciting journey filled with opportunities but it comes with responsibilities and challenges. From embracing rideshare independence to managing your finances, ensuring safety, and standing out in a competitive market, this guide has explored the essential facets of this dynamic career. 

It's time for you to take the next steps toward independence. With determination, strategy, and continuous learning, you can navigate the twists and turns of this profession, setting your own course toward financial success and personal fulfillment as an independent driver. As an other step towards financial independence, consider refinancing your auto loan to potentially save hundreds a month. Get a free quote with RateWorks today to get that process started.


How do I become an independent driver?

To become an independent driver, start by defining your niche, whether it's people or products, and strategize accordingly. Ensure your vehicle meets safety standards, have the right insurance, and consider partnering with a financial planner. 

Manage your finances, pay taxes, and focus on safety and customer service. Stand out through differentiation strategies in the competitive rideshare market.

What insurance do I need to become an independent rideshare driver?

To become an independent rideshare driver, you'll likely need insurance coverage that includes bodily injury liability, property damage liability, underinsured/uninsured motorist coverage, comprehensive coverage, and collision coverage. 

While some may not be legally required, rideshare-specific coverage fills gaps in standard policies, addressing the specific needs of rideshare drivers and ensuring comprehensive protection for you and your passengers.

How do I advertise my independent rideshare services?

To advertise your independent rideshare services effectively, consider creating a professional website with regular content, including blogs. Maintain an active presence on social media platforms for engagement and reach. 

Utilize platforms like YouTube to showcase your unique value proposition. Participate in local community events and build networks for referrals. Utilize ride-share signs for on-road promotion.