Startup Idea: Software Solution for Mileage Tracking for Uber Drivers

Startup idea to develop a user-friendly phone application, incorporating GPS, to track and record mileage for Uber drivers. The app would fill in the current gap by tracking additional required mileage from drivers' point of origin to the fare's pickup location, as well as validating miles reported by Uber, enhancing deduction claims during tax preparation.

I work as a Tax Preparer with H&R Block, helping customers file their federal and state income tax returns, prepare amended returns, and provide audit assistance. Several of my clients are Uber drivers, and a big pain point for them (and therefore for me when I'm trying to prepare their taxes) is that Uber only tracks their mileage from the point they pick up a fare to the point that they drop the fare off (drivers can claim a vehicle mileage deduction on their tax return to reduce the amount of self-employment tax they owe).

However under IRS rules, Uber drivers are also entitled to claim the miles they drove from their point of origin to get to the fare's pickup location. Tracking such mileage could be done using a written mileage log, but that is inconvenient and time consuming, especially during peak hours. I have no doubt that many Uber drivers would pay for a phone app (preferably incorporating GPS) that would track this mileage for them. Such an app could not only be used to record the mileage that Uber doesn't track, but could also be used to verify the mileage figures that Uber reports to drivers at year-end. This would allow Uber drivers to take full advantage of the standard deduction for mileage when they get their income taxes prepared.