Yes, the winter holidays are here, and almost everyone is scrambling to find extra cash to make Christmas just that little more special. But if you are already working, finding a second job can be difficult, especially in big cities such as San Francisco, Los Angeles, Atlanta, Dallas and more, where competition for holiday jobs can be fierce and not that great paying. So in this article we are looking at an Uber–easy idea to Lyft your holiday budget, known as ridesharing.
What is ‘”ridesharing?”
There are several major companies who provide one-off shared rides for the public on very short-notice, similar to a taxi-service, but instead connecting riders and drivers via a smartphone app. The two most prominent are Uber, and Lyft. Ride sharing services link- riders with independent drivers who work on their own time, who can choose to carry as few or as many passengers as they choose, as opposed to conventional taxi services, connects riders with taxi services in the area.
For example, if you had to get to an airport for 8am the following morning, many of us would arrange for a cab to collect us the night before at say 8am to pick us up. Some would perhaps risk going to a taxi rank the following morning.
With a ridesharing service like Lyft or Uber however, you can only hitch an ride via the service's app on your smartphone, there is no advance booking. Just check the app a little before you want to leave and click on the next Uber or Lyft driver who can get you there on time and a price
Once the fare is completed, the passengers are asked to rate the driver, and driver is asked to rate them. This tries to ensure that that everything was safe and worked smoothly. If as a passenger you get a bad rating, damaging their car for example, it is likely that less drivers might accept your requests for rides in the future. Passengers are able to see drivers’ ratings before they request a ride.
The Growth of Ridesharing – Can You Really Earn Good Money?
The growth of the ridesharing industry has been staggering, with the number of driver-contractors increased by 69 percent in the USA between 2010 and 2014, while regular taxi payroll employment grew by just 17 percent during the same period. In addition the size of the ride-hailing industry is expected to grow eightfold to $285 billion by 2030.
So whilst the economic indicators seem great, let’s take a look at the real statistics that matter for someone who is looking to create extra income as an Uber or Lyft driver, and what you might need to set it up.
First off, how much money can you reasonably expect to make as an Uber or Lyft driver? The app determines the fare, which may be affected by time of day, distance and city. The app bills the credit card on file for the passenger, and then pays the driver a percentage of the total fare, with a commission going to the ride-share company.
According to studies across the USA, on average an Uber driver makes around $19 net, per hour on average, compared with taxi drivers and chauffeurs, who in 2015 earned an average of $13 an hour, according to Bureau of Labor Statistics , and a typical full-time Uber driver earns around $40,000 per year after expenses.
So this pays relatively well compared to other jobs that need limited experience, there are few requirements, you have the freedom to work as much or as little as you like.
So What Do You Need To Become An Uber or Lyft Driver?
OK, you’ve decided that a full or part time driving job with Uber of Lyft fits your goals perfectly, and they operate in your city. It is simpler than you might think to fulfill their requirements.
First off, you are an independent contractor over 21 years of age, and be able to pass a background check.
So you will have to meet all of your own expenses, including fuel, car repairs and maintenance, but fortunately there are a lot of tax deductions. For example, as alternative of using actual expenses for fuel and maintenance, the IRS allows you deduct $0.535 for every mile driven for business purposes as estimated costs. This can work out to be quite a bit more than the actual expenses for a car with good gas mileage.
Uber or Lyft will take out insurance for you whilst you are logged into their app, that covers liability and uninsured motorists’ coverage up to a million dollars, and comprehensive/collision with a thousand-dollar deductible while en route to or after picking up passengers. Hoverer, you should have your own comprehensive car insurance policy, and it is worth taking out a more fully comprehensive policy with legal expenses indemnity cover policy, as we live in an age of vexatious litigation.
The most potentially problematic item that you will need is a presentable car that is in good shape. If you do not have a car, or your vehicle is rundown and unreliable and not up to the task of ferrying passengers around in traffic congestion in comfort, a great option is to rent a car and drive for uber and lyft . This way you can rent a nice car for your ride-sharing service with flexibility, just when you need it without any long term commitment, and the rental car company will take care of your insurance for you. and earn money. There are loads of great car rental companies for you to take a look at when renting a car for uber, therefore you won;t be short of options when finding the car you want to use.
So, make sure that you have a smartphone and charger, and if you work for both Uber and Lfyt you should probably use a designated smartphone for each so that you do not miss a fare. If the requests arrive at the same time you can choose which is best for you. Now you’re ready to go on your ride-sharing business journey!