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| Cons: Chalk Dust |
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...
