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Active Hours

Also called: P1/P2/P3, engaged time

For rideshare drivers, the time spent logged into the app and either available, en route, or with a passenger — affects insurance coverage, taxes, and (in some states) wage calculations.

For rideshare drivers, "active hours" refers to time when the driver app is on. The industry-standard breakdown uses three phases:

  • P1 — Available: app on, waiting for a request. No passenger, no destination.
  • P2 — En route: matched to a request, driving to pick up the passenger.
  • P3 — Trip: passenger in the car.

Why the breakdown matters:

  • Insurance: personal auto policies almost always exclude commercial use. Rideshare platforms provide contingent liability coverage during P1 (lower limits) and full liability + comprehensive/collision during P2 and P3. Some states require platforms to provide P1 coverage too.
  • State wage laws: in California, AB-5 / Prop 22 entitles rideshare drivers to a guaranteed earnings minimum based on "engaged time" (P2 + P3 only). Other states have similar rules (Washington's I-2 of 2022). P1 time may not count toward wage calculations.
  • Mileage deduction: all three phases generate deductible business miles. The platform usually reports only P2 + P3 miles in your annual statement; you must log P1 miles yourself.

"Active hours" can also mean total online time aggregated across phases. Context determines which.