Ride-sharing services like Uber and Lyft claim to be able to give people a steady source of part-time income. Many people are jumping on the bandwagon and using their personal vehicle to ferry customers around.
However, though the upfront pay may be okay, these ride-sharing services are actually costing drivers money. If you are currently driving for a ride-sharing service or are considering it, keep the following things in mind before you jump on board.
Fuel and Insurance
Depending upon the cost of fuel where you are, you may not make much profit at all for providing rides to clients. If you have a car that gets stellar fuel mileage, you can likely make a profit.
However, if your vehicle has a fuel mileage rating of less than 30 miles per gallon, you may want to think about other sources of part-time income. You will also have to increase your insurance coverage to cover commercial or business use for your vehicle.
Maintenance and Upkeep
One aspect that many drivers don’t think about is the maintenance and upkeep factor that comes with driving for a ride-sharing service. Yes, you will have to get oil changes, tune-ups and new tires eventually anyway.
However, you will have to do it more often if you drive your vehicle more often. And if you are hiring your vehicle out for ride-sharing purposes, you are going to be doing these maintenance and upkeep tasks a lot more often. These costs should be factored in when you are determining whether a ride-sharing side gig will be profitable for you.
Some drivers hope to replace their full-time jobs with a gig for a ride-sharing service. There is great freedom in working for yourself. You get to make your own hours and turn down jobs that you don’t want to do.
However, before you quit your day job, you should factor in all the costs of being a ride-share driver, and determine if you will make any money at all. If you do make a profit, it likely won’t be enough to replace your day job.