I've been asked by plenty of people if you can really make money by driving for a rideshare company. I tell people they can make money if they "actually drive" and get out there; I also tell people I sometimes fear the cost of repairs, gas, and other overhead may feel like it's exceeding my profits. I also have various other passions and gigs I'm trying to pursue, as well as maintaining a healthy lifestyle I neglected in college.
I started driving for Uber and Lyft at the end of January, 2016 and one of my friends who I live with started driving in August, 2015. We both live in Chicago. For a few months this year, Uber was doing this promotion of "guaranteed hour rates", where you're guaranteed a certain amount of money (ex $35 dollars per hour) if you get at least 1.5 rides per hour, accept at least 80% of the rides, and stay online for the majority of the guarantee period. This is handy for days when it is very "dead", no surge, you just get a number of 10 minute or less rides, or you have to wait for your passengers for awhile.
Now, this rate is gone and your "guaranteed hours" is now somewhere between 1.3 and 1.5 surge rate (most of the time) in a giant bubble within the central part of the city. I've also noticed that during rush hour periods (early weekday mornings 5-9am and after 4pm to about 8pm on weekdays) is less crowded and not surged anymore. What happened?
Are people becoming "slaves" to the system? Where you as a "contractor" drive and drive and drive until your car goes into the ground, but they don't care. They're taking their giant royal fee of 20-25 percent out of your check, reducing the amount of fare drivers can make behind your back, and not caring about you. Although you can write off some of your overhead at tax time, I feel like there's a giant overhead cost to driving, excluding time of waiting for passengers. For instance, if I make $200 dollars net in a day driving, I'd generally have to fill up my tank twice; that's $80 dollars straight into the gas tank. The corporate honchos don't care. They're making money! Without these guarantees, I feel like I sometimes make $15 or less an hour while wearing out my expensive car and needing more frequent maintenance. Plus, I think I have "driver's knee" now and fear causing injury to myself from driving.
Why do you think rideshare companies keep recruiting drivers and not passengers? It's where the corporations make the brunt of their money. Don't forget about the wear and tear in your car. Chicago is notorious for lots of potholes, which destroys the suspension. What about that passenger who opens your door into a pole and scratches it? That person who spills something in your back seat? The parts you need fixed? That random ticket you acquired from a red light camera? It seems to be your losses and everyone else's gain. The vicious cycle continues.
I also drive an older car (2004 Toyota Highlander). Since my car is larger and older, my car requires even more maintenance and costs than your average 4 door sedan that's newer. I also have an independent insurance policy where it costs more to have it solo, as well as rideshare insurance costing more. I am over 25 now and have no accidents on my record (*knock on wood*), but I still feel like I pay a ton. A lot of companies reject rideshare drivers, but luckily the insurance I was on already was the only place that didn't reject me.
It's like a facade of making a profit, but actually digging yourself into a hole of further debt. The head honchos get all the money and the drivers are the little peons to the people on their thrones.
Is the ridesharing model "really" lucrative for full time drivers? Some people make lots of money full time, but part time drivers can make an extra $200 or so dollars per week and not put as much wear and tear into your car or have to deal with as much overhead. You could do it full time, but as for me, I'm going to transition to part time!
No comments:
Post a Comment