“[Ride sharing] is a big culture shift. And for those who figure out how to shift gears and get in the fast lane, it can be big business.” – PWC April 2015 Report
“[The] taxi industry needs to take a hard look in the mirror as to why so many would-be passengers are opting for Uber. Nicer cars, more prompt service and ease of payment are just a few reasons” – Montreal Gazette, April 28, 2015
Almost everyone has heard of the ride-sharing platform Uber. Uber is one of the pioneers of the sharing economy. Why has it been so successful? You work your own schedule, use your own car, and get paid weekly.
So how does Uber work? Through the app, Uber drivers are paired with Uber riders who want to pay a predetermined price to get a ride to a specific destination. Simple as that.
Uber’s growth has been spectacular. In December 2014, Uber was valued at approximately $40 billion. By 2015, Uber was adding 50,000 new drivers every month. Now, Uber has over 1 million drivers. In 2014, Uber made $2 billion in revenue, and in 2015 the company was on track to earn $10 billion.
Although headquartered in the U.S., Uber is available worldwide in over 266 cities across 55 countries. It’s in more cities than a Rolling Stones tour. Although the origin story of Uber is fascinating, it is not the purpose of this post. Here, you will learn here the basics of the Uber platform and how to profit from it.
Want to know the secret to finding out if Uber is right for you? Download the Uber app and use it as a rider. By using Uber as a rider you will be able to ask direct questions to drivers. How much do you make? What was the hiring process like? What are your challenges? Do you work full or part-time? You get the picture. This will also give you an opportunity to experience the platform.
Let’s dig a little deeper into the Uber possibility to see if it’s right for you.
First things first, does making $19/hour make sense in your situation? That is the gross hourly average for Uber drivers. Maybe you make more, but are looking to work a few evenings or weekends. Maybe you make less and want to work on Uber full-time. Whatever your situation, Uber can help fill financial gaps in your current lifestyle.
The basic requirements for driving with Uber are:
– Your car must be 2006 or newer (this will change yearly, and varies by city);
– You must be 21 or older and pass a background check;
– No major damage to your car;
– Car must be 4-door, pass and inspection, and be insured under your name; and,
– There are mileage requirements, but they vary so check directly with Uber.
If you already own a vehicle, these requirements are low cost (or no cost!). This means you have little startup cost to becoming an Uber driver.
For insurance, Uber only requires that you have your personal auto insurance. Uber does however provide extra insurance coverage. That being said, all Uber drivers should talk with their insurance company first to make sure their coverage is adequate. We recommend all readers do this as well. If you need more coverage, purchasing addition insurance is worthwhile.
After becoming an Uber driver, you must maintain a good rating. Uber implemented a scoring system that allows users to rate their experience. If you do not have a good experience rating, then Uber can kick you off. Users rate their ride between 1 and 5, and Uber likes drivers to keep an average of 4.6 or more.
The average Uber rating is 4.8, but always aim for 5.
Some helpful tips from the Casual Capitalist Community who have driven with Uber:
– Bring a phone charger so you can stay connected to Uber app – Ken
– Try it out part-time by turning on your Uber app when you have a spare hour or two – Rachel
– I suggest turning on the Uber app when you get bored at home, that’s how I make $400 a month – Mike
– Get to know your city intimately before driving, the most common cause of a bad rating is poor navigation – Mike again
– Know the busy evenings in your city, or when special events are on. These nights offer the best potential for income – Glenn
– Don’t rule out Uber just because you don’t have a vehicle, run the numbers and consider buying or leasing – Jeremy
As an added bonus, Uber often has sign up bonuses that range from $100-$500. What are you waiting for? Sign up now.
P.S. If you’re serious about getting into the ride-sharing game, you may want to check out the Maximum Ridesharing Profits course offered by my friend Harry Campbell. This is a fantastic course that will get you from zero to sixty, or zero to profit, with popular ride-sharing platforms such as Uber and Lyft. Many in the Casual Capitalist community have taken this course and loved it, you will too.
Glenn Carter is a sharing economy expert and is sharing his passion for side income through new digital platforms with his readers.