Uber has become the essence of the gig economy, but brain trust MIT has just delivered an almighty kick in the balls for its drivers. The median pay works out at just $3.37/hour.
Now there is alot you can do to boost your income and you can turn ride sharing and deliveries into a full-time wage that helps fund your next venture.
Unless you start a blog or successful vlog, we will not call driving for Uber, Lyft, Sidecar and more as a career.
Nerd rapper Ollie b used his mild-mannered Uber driving persona to launch a YouTube rap career. But not everybody can do that.
It is still a way for a motivated person to pay the bills while they set up their next venture.
But it’s a skill, like any other. There are endless tricks of the trade and you need to learn them.
Lots of information is out there for free and we are putting together a complete guide right now. But study The Rideshare Guy, get the apps, sign up with the right services and get the right car.
An electric Tesla Model S is the dream ticket with free fuel and it leaves an impression on your customers.
Do it right, claiming every subsidy going, and a Tesla Model S could turn into a free car. You still front the money, but you can play the IRS like a fiddle with an electric car and claim for miles that cost you virtually nothing.
It’s a bold strategy and an investment, but get a Model S fresh off the line, keep it perfect and you can add airport runs and basic chauffeur duties for your own clients later on.
Trick it out with infotainment and even advertising in the rear and you’re on your way. You will learn customer service, awkward negotiations with drunks and you will learn how to put people at ease.
In fact, I wrote this piece a long time ago making a case for delivering food and driving for Lyft.
Forget internships. If you spent one year driving Uber and approaching it like a proper business, then you will be streets ahead of mist office drones.
Could this be the perfect solution for overeducated and underemployed graduates? I think do.
But do Uber wrong. Just drive round aimlessly, burning fuel and your nerves, and you will join the masses that aren’t even scraping by.
The MIT CEEPR study looked at Uber and Lyft. In both cases, the take-home pay of the average driver makes for painful reading.
The study is called: The Economics of Ride-Hailing: Driver Revenue, Expenses and taxes.
MIT produced the report for the Center for Energy and Environmental Policy Research. They carried out the most professional and detailed audits to date on 1000 drivers and their findings were brutal.
74% of drivers earned less than minimum wage and 30% of drivers were actually losing money driving for Uber.
It’s easy to look past your hidden costs like vehicle maintenance. But you can’t, or you can find yourself flat broke. MIT included a standard and complete view of every driver’s actual expenses. It was a shock to most of them.
The mean profit for a Rideshare driver is just $661 a month, which is bad. But if you are going to drive for Uber and Lyft then you have to be exceptional. Treat it like a customer service business, get the Tesla or Mercedes and go all-out.
A great Uber starter car would be an Audi A8, just inside the she cut-off, which should be cheaper than the equivalent Mercedes.
Then let tech help you, streamline every mile and earn the most you can on any given Sunday, or Friday night.
The study found that the median driver brings in 59c a mile, but spends 30c a mile. You have to do better than that or you will be just another poor soul chewed up and spit out by the gig economy.
Some venture capitalists have described the whole gig economy as a modern day sweatshop. And of course they are right.
Bit the simple truth is there are people making bank driving for Uber, Lyft, Sidecar and more.
You can be one of them if you spend the time and learn the tricks and tools of the trade.
There’s a big debate about the future of the gig economy, with legislation to protect workers and all that bullshit coming shortly.
But it doesn’t actually matter. Uber is a strictly short-term term gig because the robots will take your job.
As soon as it physically and legally can, Uber will replace it’s ramshackle collection of superstars, social outcasts and recently divorced and sad men who just want to talk with autonomous cars.
People will be out of the equation from that moment and it’s coming sooner than you think. You have 3-5 years left to make a killing in Rideshare and deliveries.
Then this window closes forever. So do it, develop your people skills, find ways to boost your profits and make money. Then use that to seed your next business.
Get your next venture, internet sales, affiliate marketing or a Shopify store, up and running while you drive. When you are making money, you can cut back your hours on the streets.
Just make sure you learn the trade and all the Uber tricks to boost your income and your tips. Otherwise, you could end up living in your car…