Rideshare drivers often work under a budget. To turn a profit, they must constantly prioritize expenses like gas and rideshare car insurance required for services like Lyft and Uber. There are some hidden fees as well that they have to be vigilant of.
Fortunately, fees from toll booths are not one of them. It’s common for rideshare drivers to take routes with toll booths. A general rule that most rideshare companies have is to take their passengers on the most efficient route. If that route has a toll, then they consider that.
Every year, rideshare services receive new drivers because of the prospect of being your boss and your chosen working hours. The best rideshare drivers are good drivers and intelligent with their finances because turning a profit is different for every driver. The good news is that Lyft and Uber drivers receive reimbursement for any tolls encountered on their routes.
How do Rideshare Companies Handle Tolls With Their Drivers?
Rideshare drivers have enough to worry about with their gas bills adding up to keep them in business. There’s also the question of how much tax there must be for being a self-employed worker. Fortunately, the tolls they rack up on the job are expenses they won’t have to worry about since the rideshare company handles it. Well, more specifically, the customer handles it.
Uber and Lyft calculate their fees by the distance between pick-up and drop-off points. If that route has a toll, the toll amount will be added to the rideshare customer’s tab the app generated. When you go through the toll itself, you pay for the toll, whether it’s out of pocket or if you have a pass that sticks on your windshield.
When the customer is automatically charged, they pay the toll amount, thus reimbursing you for any toll expenses on the ride. Both Uber and Lyft work this way, but their practice may have some minor differences. So, Lyft and Uber drivers do get reimbursed for tolls.
How do Uber And Lyft Handle Tolls?
Uber and Lyft include any tolls on the customer’s ride bill, and the driver will always be reimbursed. However, the rideshare companies may differ in calculating fees and reimbursements. Uber’s app adds the tolls at the end of the ride while the driver pays for the tolls as they go through.
The reimbursement is calculated based on the present toll rates of the area. The app creates the most effective route to the destination when the driver picks up a customer. It’s important to note that Uber doesn’t reimburse their drivers for optional tolls. These could be carpool or express lanes as well. More details on optional tolls are below. The rider or customer paying the toll themselves is against Uber’s policy since they pay for it as part of their fare.
Lyft works the same way. The customer is picked up, the rate is calculated based on the route, and any tolls are tacked onto what the customer pays. The driver pays the toll out of pocket or by electronic payment as they pass through the gate, instead of the customer –even if they insist because it’s against company policy.
Like Uber, optional tolls and lanes may not qualify the driver for toll reimbursement. In addition to fees, Lyft drivers don’t pay for loading zones, venues, cancellations, or service fees. If you drive someone to an airport and they charge a pick-up or drop-off fee, it would be added to the customer’s tab.
What is an Optional Toll?
Highways around the United States have what is known as an optional toll lane. Many drivers use these lanes to spend less time driving and save on certain tolls. A small fee, usually 25 cents, is paid upon entering the lane. When the driver leaves after a certain number of miles, they pay another fee based on the miles they traveled. Rideshare drivers typically won’t be reimbursed for optional tolls.
Below are cases when you would not be reimbursed for tolls:
- High-occupancy vehicle lanes - The HOV, or carpool lane, is reserved for those with many people in the vehicle, like a carpool. Rideshare companies don’t use these lanes, so they would have no reason to reimburse their drivers.
- Express lanes - Rideshare apps won’t incorporate express lanes in their routes. If you’re looking to make a better time using one, then it isn’t considered an expense of the rider. Therefore, you would have to pay the toll and not be reimbursed.
- Past-due payments - The rideshare company isn’t responsible for any late payments or associated administrative fees. Any changes to tolls currently being collected are the responsibility of the driver.
How do Rideshare Drivers Get Reimbursed For Parking Fees?
Much like how Uber and Lyft calculate tolls in a customer’s tab, they also calculate any parking-related fees. Rideshares are a popular choice by many when there’s a music concert. Venues typically charge parking fees on the evening of the show. Uber and Lyft track these fees and add them to their total. Airports are another example when there are fees charged for stalling. The rideshare app also calculates this fee to reimburse the driver.
What Else Do Uber And Lyft Drivers Need to Know About Tolls?
You will be covered for any tolls while on the job in your rideshare vehicle. However, there are a couple of pertinent things to remember. Uber and Lyft drivers may be charged what is known as a commercial toll as they pass through a toll booth. As their name suggests, this is issued to commercial vehicles instead of standard residential ones.
The good news is that it’s less than a standard toll, but the amount the customer pays may be the standard amount. Be sure your rideshare company reimburses you for the total amount you paid. Keep in mind that your passenger may be charged a different toll than you would be.
The customer’s rate will change if you have to deviate from the route with a different number of tolls. Rideshare customers are always in the loop of what they’ll pay, as any tolls are listed upfront on their ride charge. Tolls are not an expense you should be concerned about as a rideshare driver.
Gas, however, is an expense that rideshare drivers need to pay close attention to if they want to protect their profit margins. Rideshare drivers are responsible for ensuring they have a gas tank ready for work every day. However, that fuel is being used for business purposes to be tax-deductible on quarterly taxes.
Remember to keep track of your miles and collect your gas receipts. Ask your rideshare company if they offer discounts or programs that can help you save on gas. The most successful rideshare drivers are those that economize—looking for more information on this topic? Please read our article about Whether I need commercial auto insurance for Uber.
