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Rideshare in Perth – How to start driving?

Confused about the steps to become a Rideshare driver in Perth? We’ve compiled an in-depth guide to help you navigate the benefits and costs involved in joining the gig economy as a driver.

Do you want to drive for a job?

Rideshare driving can be a rewarding part-time or full-time income source. Completing all of the applications can be tricky, so here is some advice and links to simplify the signup process for a new driver. This guide is based on driving a Tesla Model 3 or Y in Western Australia primarily on the Uber platform.
I am not an accountant, lawyer, DoT or Uber employee and the below is general advice.

Reasons to drive Rideshare

  • Flexible hours. Uber allows up to 12 hours driving per day. You must take an 8 hour rest break after this period. You can choose when to drive, whether it be weekends, during school hours or evenings. This means it’s a great option if you need to take the kids to sport or have other priorities.
  • Scalable income. You can expect average hourly rates of AU$25-50 (prior to the deduction of expenses, GST and Tax). This depends on your location, vehicle, and time of day.
  • Social interaction. You can meet over 30 different passengers in a day. Some passengers will enjoy the opportunity to discuss their upcoming event or their day so far. This can be very interesting for drivers coming from an office-based role and make the day go quicker.
  • Goal-oriented. Receive a fair reward for hard work. See the income you are generating every 10-20 minutes and daily. Set a motivational weekly or monthly target towards your long-term goal. I find it best to have a set finish time before logging on, as ‘one more trip’ usually leads to another.
Woman sitting in back of vehicle relaxing
For many passengers, this is a great time to relax before or after work

Reasons not to drive Rideshare

  • Safety. While very rare, the occasional rough passenger may enter your vehicle. Driving your vehicle more also increases the chance of a vehicle accident. Minimise these risks by picking the times and locations that you drive in.
  • Higher tax. If you are doing Rideshare as a secondary income, this may be taxed at a higher tax rate than your primary income. Find a competent accountant to keep your payable tax at the correct rate, and to ensure you can claim back all the expenses and deductions you are entitled to.
  • Wear and Tear. While a Tesla has far fewer maintenance items than an internal combustion (ICE) vehicle, your vehicle will likely receive marks and scrapes on the interior and exterior. Price into your startup costs items such as PPF, seat covers and other protective accessories to minimise wear.
Woman driver with her hand on her forehead, looking upset.
Some rides can’t finish quick enough, but these are very rare

Why use a Tesla Model Y for Rideshare?

The Tesla Model Y makes an excellent vehicle for Rideshare. Its space-age technology and the relative rarity in Perth make it an instant ice-breaker with most passengers. Most of my passengers are overjoyed to have their first ride in a Tesla and say it has made their day. Some even ask to take photos after their trip to show off to their friends or family!

The Model Y includes many features not found in non-premium vehicles. I use Autopilot for highway travel, external cameras for passenger sighting and Spotify for entertainment. The auto-opening/closing boot is large enough for two family-sized suitcases. I prefer the Model Y for easier luggage access and extra passenger room compared to my previous Model 3.

Ongoing maintenance and running costs are 15-20% of comparable petrol or hybrid vehicles. Electricity costs are around 20% of the price of fuel depending on the vehicle. Electric vehicles require very little servicing, with tyres the only major component you will need to replace within 5-10 years.

One of the downsides of the Model 3 and Y are the unique door handles. I have made instruction stickers to assist passengers but still occasionally need to open the doors for them. This is possible to do from the driver’s seat by reaching over and pushing the door release.

Another downside is the ease with which the hard plastic interior is scuffed. Within a week I had scuffs from shoes on the inner door frames. I plan to cover these up with aftermarket vinyl kits.

Tesla Model 3 interior, showing rear passenger seats
The roomy Model Y is a brilliant Rideshare vehicle with its near-silent drive and spaceship interior.

Requirements to drive Rideshare

Uber has specific requirements listed on their website (https://www.uber.com/au/en/drive/perth/get-started/) with other Rideshare platforms sharing similar requirements.

Briefly these are

  • you are at least 21 years old,
  • hold an unrestricted WA license (not L or P plates),
  • had a full Australian license for at least 12 months in the last 2 years,
  • and have the right to work in Australia.
  • Your vehicle must have at least 4 doors, is 10 years old or newer with no cosmetic damage and meets ANCAP 5-Star rating or be on their exemption list.

You can hire a vehicle if you do not own one, but this will increase your expenses.

Insurance for Rideshare

You will need at least third-party property insurance on your vehicle to qualify for Uber. I highly recommend fully comprehensive insurance as it covers your vehicle in accidents. Many mainstream insurance providers do not cover Rideshare activities or charge high premiums for Tesla vehicles, so you may need to obtain several quotes before deciding on a provider.

RAC(WA) have recently changed their policy wording and can now cover a certain amount of Rideshare hours. Specialist providers such as Limosure cover Rideshare and Chauffeur activities and offer a separate Public Liability insurance product to cover other incidents that may occur during trips.
Uber includes certain injury coverage while on-trip but this does not cover your vehicle or others.

Woman using her phone and screaming
Don’t risk losing your income and your vehicle in a crash by having the wrong insurance

Sign-up Process

I recommend starting with a basic profit-and-loss or a monthly budget for your vehicle, including any expenses and charges you expect from the below sign-up process. While there are initial and annual costs to driving Rideshare, driving a Tesla or other electric vehicle keeps your ongoing maintenance costs low. You may even discuss your plans with an accountant or business advisor in case your taxation or personal circumstances are not suitable.

If you meet the basic requirements listed on the Uber site, then you can start your Uber driver application. Download the Uber Driver App and sign up to Drive for Uber (referral link at the end of this article). Complete the process through the Uber App filling out your personal information.

Once you have applied for your NPC through the Uber App, you will need to follow the WA Department of Transport (DoT) approval guide for the rest of the application documents required for the Uber process. DoT has an in-depth guide on their site (https://www.transport.wa.gov.au/On-demandTransport/on-demand-transport.asp) but to summarise you will need:

PTD (Driver Authorisation)

  • A National Police Certificate – this will cost around $45 and may take a day to two weeks depending on the service you use. If you complete this through Uber’s partner (https://www.uber.com/au/en/drive/requirements/background-check/), you can use this result for the DoT PTD application.
  • A DoTDirect account – this is where you will upload and manage documents for your PTV, PTD and other Transport services.
  • A Medical Assessment – you will need to complete a form and take this to your regular GP who will complete the assessment and send a copy to the DoT. I’d recommend keeping a copy of this and uploading it through the DoTDirect application form rather than waiting for DoT to receive it.
  • Once you have the NPC and Medical Assessment, you can complete the PTD (Passenger Transport Driver) application. An application fee of $28.45 is required at this stage and approval can take 2-3 weeks. Once approved, the annual authorisation fee of $89.50 is required.

PTV (Vehicle Authorisation)

  • A Vehicle Inspection – required unless you purchase a new vehicle. You need to schedule and take your vehicle to an Authorised Inspection Station (AIS) (https://www.transport.wa.gov.au/licensing/get-a-vehicle-inspected.asp ). They will check items such as your brakes, indicators and safety items on the vehicle. A fee of $162.30 covers the initial inspection for a light vehicle.
    I’d recommend asking your mechanic to check these items (https://www.transport.wa.gov.au/mediaFiles/licensing/LBU_VS_FS_checking_vehicle.pdf ) prior to your inspection. You need to pay to re-inspect should the initial inspection find any issues. This is an annual inspection.
  • Once you have completed the inspection, you can apply for the PTV OD-C (Passenger Transport Vehicle – On-Demand Charter) authorisation through DoTDirect. This has an application fee of $15.25 and once approved, an annual fee of $114.95 per vehicle.
  • During the application, you will need to modify the Motor Injury Insurance (MII) on your vehicle from 1A (Motor Car) to 3F (Other Hire Vehicle), increasing the yearly fee from $457.55 to $621.90, an increase of $164.35 per year. This change will appear on your motor vehicle registration.
  • Once you have received your PTD and PTV authorisation, you can complete the Uber application by uploading these documents through your Uber app.

To summarise:

  • Sign up with Uber
  • Request an NPC through the Uber process
  • Create a DoTDirect account
  • Visit your doctor for a Medical Assessment
  • Complete the PTD application
  • Book and complete a Vehicle Inspection
  • Complete the PTV application, modifying your MII from 1A to 3F in the process
  • Wait for both PTD and PTV approval. Follow up DoT weekly.
  • Once approved, upload all documents to the Uber app.

All up, it may cost around $650 plus any insurance increases to complete all the approvals required to start driving Rideshare. You can easily earn this back within a weekend.

Should you have any questions, please get in touch.

 

*Details correct at time of writing in 2021.


Interested in joining Uber? Sign up with my Uber referral code to receive a cash bonus once you complete 30 rides:
https://www.uber.com/a/join/?invite_code=garryc2339ue

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