The prospect of making money via ridesharing, as an Uber or Lyft driver is tempting, but before you start doing this thing you have to know how it works and what are the less pleasant sides of driving people around.
The rage of transportation network companies is a big part of the sharing economy embraced by millennials. Ridesharing simply implies joining a ridesharing company, such as Uber and the using your personal car to transport people from one point to another and being paid for it. But ridesharing is not an actual taxi service, in fact, many taxi companies complain about their clients being attracted by ridesharing, instead of relying on taxis, as usually.
In many countries and states the ridesharing service is surrounded by myths and controversions, yet there are statistics which show that ridesharing changed the world in better. Before you start enjoying the perks of being an Uber or Lyft driver, there are some important things to know.
Your insurance might not protect you
Most insurances don’t cover incidents during ridesharing, as they don’t provide coverage for using your car for hiring purposes. This means you may have to pay for everything out of your pockets in the event of an accident. Before you join ridesharing read your insurance carefully, so you know what the risks are for you and the passengers, if something bad happens.
The platforms’ insurance might not protect you either
Most ridesharing companies provide ridesharing insurances to their drivers. But these insurances might not protect you either, if the accident happens when there is no passenger in your car. Most ridesharing insurances only provide coverage for the time the passengers are in your car, so if the accident happens when you are driving alone to pick up a passenger, you might find yourself paying the damage from your own pocket.
Don’t quit your job
Ridesharing fees are very attractive on the paper, but when you actually start driving around the city – or outside it – you will realize they are not that tempting anymore. Never quit your day job on behalf of ridesharing! Start doing the latter as part time and get to know how the system works, then evaluate the work versus the revenue. If you find it to be thrice as profitable as your regular job, you might start thinking of quitting. There are many payments beginner drivers don’t take into account, such as gas, insurances, car maintenance and washing. These add up quickly and at the end of the month you can easily find that ridesharing is not as profitable as you thought it will be.
Consider working for two companies at the same time
This might be a way to increase your income, as some ridesharing companies are busier in one city, or at a certain period, while others go lighter. When you work for two companies you can compensate the light times in one company with the heavy work on the other. Moreover, working for two companies can help you decide which one fits you best, as each ridesharing company has slightly different regulations. For example, Uber requires your car to be under ten years old, while other companies allow older cars to be used.
Bottom all, don’t dive heard first into ridesharing. As any new thing, it’s tempting, but it comes with its own perks and flaws. One thing is certain: as a ridesharing driverwritten you will have lots of great time and you will meet amazing characters.