Driver Side: Is It Worth It?

Cons: Chalk Dust

You might have noticed the recent study that pointed out that most rideshare drivers aren't making minimum wage. Also, that many of them are actually losing money, given vehicle depreciation costs.

This kind of thing gets a lot of legs in the media, because disruptive tech and rideshare vehicle congestion isn't exactly the most public relations friendly sector right now. Besides, that kind of story will always get coverage.

Now, I'm certain that there will be a wide range of outcomes here, because my own range varies a ton. There are hours when I'm probably not making back my operating costs. There are other hours where everything works, and I get to my target with speed.

But what I can tell you is that if you aren't operating under the following conditions, you are much less likely to turn a profit on this.

> Paid off car.

The mileage that you'll burn on the side hustle is, well, a lot. I'm on the hook for 45K a year on my insurance, and that's right in line with where I'll wind up. If you've got a monthly payment on a long-term loan, you're going to burn that car up before you get done the payments. Which leads us to the next and very obvious point...

> You get good miles per gallon.

I drive a Honda Insight hatchback, which just might be the ideal rideshare car. It gets around 40 mpg, it fits in every side alley and lets me do all of the U-turns and squeezes through traffic you could hope for, and the hatch means that people can put things in and out of the trunk without too many issues. It's not the kindest car to tall people, but most rideshare passengers aren't giants, and those that are don't tend to summon ordinary cars.

> You are in a densely populated area.

Rideshare driving is an occupancy game; the less time you spend without a passenger, the better. Sparse areas can be occasionally lucrative, because long rides are occupied hours, but the time you spend getting the next rider is unpaid.

> You inspire tips.

When you enter my car, you get the option to take a small bottle of water, cough drops and breath mints. I'm also OK with catering the radio or iPod to your preference, happy to share some of the content that you see on this blog, and so on. It's a long day driving, and I've got a service mindset. In short, I tend to inspire tipping, especially when the hustle is going well.

This doesn't mean that most people tip.

The plain and simple fact of rideshare is that it's a service that's often utilized by people who are avoiding public transportation, or don't have the funds for their own car. That's not exactly a prime market for disposable income, and it doesn't have to be. If I'm occupied for the majority of an hour, my rate is going to be acceptable. So even in optimal conditions, in a region where incomes can run high, tipping isn't likely to occur more than 10-15% of the time. (I have to think this is lower than what cabbies make, but that's totally besides the point.)

However, the people who do tend to tip me take hours out of my week, and really can turn the economics around.

If you do rideshare for a good chunk of time and never get tipped, you might want to adjust your practices. Or find another hustle, honestly.

> You itemize, well, everything.

I won't get into the guts of this, but thanks to a long time working as a consultant with a wife who is also a musician, I've been with the same accountant for a long time. It's worth it to me. Besides, it really isn't hard to keep track of automotive expenses. Just tuck a notebook into the glove compartment and use it for gas and repairs. Helps with keeping track of how your car is doing on miles per gallon, too.

> You get lucky.

Honestly, rideshare money is all about the luck of the draw. The big long ride to the airport, which pairs to the big long ride to the city, which fires off hours of drops where you are near the next passenger. The key to keeping sane is to note when things go your way, and try to remember them as well as when it's the other direction.

Because, well, it's going to go in the other direction. A lot...

Story Time: The First To Know

Only Not Light Bulbs

Shared ride ping in Oakland. I roll on up to a happy young woman who is practically vibrating with excitement to get in the car. She sits in the front seat. I give her the usual intro (water, cough drops, breath mints, destination). She confirms the address, and tells me that she's really been looking forward to taking a ride, because...

Since I am a total stranger, and someone she isn't ever going to see again...

It's totally safe and beyond the touch of all superstition for her to tell me, first among all humans on the Earth...

That she's pregnant.

For the first time, overjoyed to be so, but barely a month into it and doesn't want to tell anyone in her world, because it's Too Soon and Bad Luck and all that.

I congratulate her, tell her a little about what to expect from my understanding of it (father of two)...

And share her good news with the next two people in the shared ride.

Because it's not as if they are going to tell anyone she knows, either...

Passenger Tips: Why We Can't Find You

No cell service, either

The pick up is generally the hardest part of a rideshare trip. It's generally the biggest source of stress, especially in a crowded area, and can be particularly annoying for passengers. So what's keeping us from you?

Well, usually, it's the app. Here's why.

When your driver gets the ping, we get your street address with an address pin, and (usually) a stick figure icon of where the app thinks your phone is. If these two locations are having an argument, we're left with a couple of poor options.

> Drive to the address point. Technically where you requested the ride, but subject to the whims of GPS.

> Drive to the stick figure. Which would work if cell phone coverage was perfect and continuous. Or if some folks don't call for rides for other people. In other words, driving to the stick figure isn't always the best idea

> Drive somewhere in between. Generally, this is my go to move. Of course, it all assumes that there's a good place to pull over in the first place.

So how do you avoid this? Be proactive with your pick up point. I recommend using corners as your address, and being there when your driver arrives. It also helps if you don't change your position in the time that you request the ride, especially if you are in a poor zone for cell coverage (i.e., tall towers).

Failing that, you can always text or call your driver. Personally, I prefer the text, because taking a call can wipe out my GPS, and there's rarely more information that I need that you couldn't put in a single line of text. It's also quite possible that your call is going to happen in a loud club, which really doesn't help. Or if you are picking up a shared ride, you could be calling my loud car. Honestly, just text.

And if you just keep having a problem and aren't willing to adjust anything... just cancel the ride when you see I'm your driver, ok?

We probably weren't going to get along too well anyway.

Saving Money: The Magic Hour

Or Something

The vast majority of people that talk to me on rides aren't, it seems, flush with cash. Something about living in the Bay Area, where the housing costs infect damn near everything you buy. This is, of course, also a big reason why I'm spending my out-of-office hours Lyfting.

So passengers are surprised and happy to hear that I'm willing to share tips on how to save cash on their rideshare.

Why am I willing to help you save money when a lower fare turns into lower funds for me? Because 86% of all rideshare proceeds, according to a study I read recently and can't be bothered to cite, just comes from the base fare. So the Power Zones, Surge Prices and Chain Whatevers are really just a distraction.

Tips, on the other hand, are not. I do what I can to inspire those, because they take the hustle to actually useful levels of compensation.

Besides, the vast majority of people don't tend to stress about the cost of a fare. They are just in a hurry. Those people also aren't reading my blog. So.

In major cities, rideshare companies are trying to ensure coverage during busy times of the day. They do this, at least at the time that I'm writing this and for the entire time that I've been in the hustle, by setting a surge price that lasts for the entire hour in certain regions. (Mostly downtown. You know, where you'd expect them to be.)

So the very simple thing to do, if you notice a price that seems higher than you'd expect or want to pay and it's 58 minutes past the hour... is to try it again at 01.

Especially if 01 gets you past 9am, 7pm, or 2am. This trick might not work so good is the waiting puts you past 6am, 5pm, or midnight.

Simple, easy, and might save you 10-40% on your ride.

And if you really want to know when and where the surge prices and power zones are happening...

Well, you could always become a driver. (And I could refer you and get a very useful bounty. Let's talk.)

Post 1: The Who, What And Why

How and When Don't Matter

The who is easy. I'm Dave. Maybe also your driver recently.

The what is almost as easy. In my non-office working hours, I do rideshare as a Lyft driver.

As I start this blog, the ride count is around 4,000 over the past 14 months. The current burn rate is over 100 a week, but I drive to a weekly revenue goal, not a ride count.

I also only drive, at least at this time, for Lyft. We can get into the reasons why on that later, but if what I'm writing here doesn't quite jibe with your experience with some other service, that's why.

The why... gets longer.

Why rideshare is simple. I need the cash. The Bay Area is crazy expensive, my family is 3K miles away back in New Jersey, and I'm paying for housing in two places. We also have medical and educational expenses, and my role in the family has always been the primary financial engine. It is what it is, and it's necessary. If robot cars take over, I have to find another thing, and fast.

I've also been a professional writer and marketer for more of the past 30 years, and have a bit of a knack with a story and the words. I've also been lucky enough to have some adventures in my life as a musician, stand up comedian, husband, father and all-around try hard.

If you are reading this, there's a reasonable chance you've been in my car. Enough people that I've talked to in that circumstance have asked me to put stuff online.

Here, you will find money saving tips, strategies for passengers, stories from various adventures, and whatever else I feel like throwing into the mix.

If you like it, please spread the word. If you don't, please go somewhere else. It's a big Internet, and there's really no reason for you to be in the parts you don't like.

Please note that I'm also old and ornery enough to not likely change much. So there's no good reason to bring too much in the way of negativity to the party.

Hope you enjoy it, and please tip your driver. (You can also click on some ads. That works too.)