What You Need to Know Before You Begin Rideshare Driving
The rideshare industry is taking over the market for rides when you can’t drive yourself and with demand from riders on the rise, so too is interest in driving to make money. Rideshare companies like Uber or Lyft do a great job of promoting their apps as an excellent way for drivers to make a living with nothing more than their own cars and some free time. While the apps do make it easy to get started making money, before you jump in there are some considerations you should know about.
It’s Not Just the App That Takes a Cut
When you drive for a rideshare you use your app to meet up with riders in need of a lift and their fare is automatically paid to you. While drivers contribute their cars to the process, the rideshare companies contribute their apps, and since both of those elements are required you both get a cut. The companies usually take between 20- and 28-percent of each fare, and you should expect to lose an additional slice of the pie for sales tax.
You Have to Factor in Short Term Costs
The money you make each hour on the app doesn’t come without drawbacks as well. You’ll need to spend significantly more money on gas, as well as devote extra time and money to cleaning as riders expect clean cars. You may also see an increase in your insurance costs to account for the increased risk of more time behind the wheel. These costs can quickly add up to take a big chunk out of your earnings.
Expect to Need to Perform More Maintenance
More driving means more wear and tear for drivers’ cars, as well. If you are driving as more than just an occasional way to make a few extra bucks on the side, you will likely increase the cost of repairs on your car due to the increased usage.
Careful Planning is Essential for Success
While this may make it seem like it is nearly impossible to make a good living driving for a rideshare, that is not the case. It’s important not to have unreasonable expectations, but when you know the above challenges you can try to plan to maximize your earnings. Work put in outside of your driving hours, like researching peak times and ways to save money, such as finding the cheapest gas stations, can help you to get the best results when on the app.
If you’re considering trying out driving for a rideshare company your best option is to do some research on your local market. This will allow you to determine if you should pass or if you’re in an ideal position to not just survive, but to thrive as a driver.