You have a vehicle.
you gotta supplement your income.
Driving for Uber or Lyft may seem like a no-brainer.
But is ridesharing all its cracked up to be?
Before you sign up, take some time to answer these sobering questions.
How Much Will I Really Be Making?
Uber and Lyft drivers are considered independent contractors, not employees.
So earnings can get a little tricky.
First of all, the companies dont pay by the hour.
They pay per fare.
Every part of that equation may fluctuate per ride making hourly earnings nearly impossible to project.
Still, on average, drivers can rake in decent dough.
Lyft drivers took home $15 to $16 an hour, according to 394 drivers.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
I did a cost-benefit analysis, he said.
The profit only ended up being $10 an hour when we broke down all the other expenses…
I didnt really think of that going in.
Did you know?
Can My Vehicle Handle It?
The first thing you oughta determine is if youre vehicle is eligible for ridesharing.
In ourUber vs. Lyft guide, we break down the basic requirements.
Your vehicle must be able to fit at least four passengers for both services.
It needs to be in good working condition, too.
But just because its in good condition at first doesnt mean its going to stay that way.
Besides gas, Brown said his maintenance costs piled up quickly.
I put almost 30,000 miles on my car, Brown said.
Those miles cost more than just gas and oil changes.
They depreciate your cars value, too.
What Are the Risks?
The most dangerous part of driving for a rideshare company … is the driving part.
Driving is one of the most dangerous things we as Americans do on any given day.
Workers dont always know what theyre getting involved in when they take a fare.
In December, Uber released the extent of those risks in its first ever US Safety Report.
The study analyzed fatal accidents, physical assaults and sexual assaults across 2.3 billion trips in 2017 and 2018.
The company reported 5,981 incidents of sexual assault.
An analysis of Ubers data indicates that in almost 2,700 of those incidents, the driver was the victim.
Twenty two drivers died in car accidents, and seven died from physical assaults.
Lyft has not released similar statistics.
Are Dash Cams a Good Idea?
If you are prepared to invite strangers into your car, a dash cam may be a good investment.
Dash cameras are relatively inexpensive and easy to set up.
On Amazon, a standard model costs between $30 and $100.
SeveralUber and Lyft drivers said their dash cam purchase was well worth it.
The biggest difference between the two is deductibles: $1,000 for Uber and $2,500 for Lyft.
A dash cam provides legal backup in case an accident happens while youre logged on.
It may also strengthen your claim to receive reimbursement if a passenger damages your car.
Thats where a camera comes in handy.
Whats My Exit Plan?
The gig economy offers easy entry compared to the traditional job market.
Its the leaving part where most people get stuck.
Its easy to start depending on the extra money from driving.
But once that cash starts going toward rent or groceries, quitting puts your finances at risk.
And that situation can easily snowball into never-ending work.
To avoid that scenario, create aside hustle exit planbefore you take on additional work.
Compared to some side gigs, the startup costs to rideshare driving are relatively low.
So your plan doesnt have to be bound and laminated.
Even with that goal, he said the work sucked him in.
Brown was indeed able to pay off his car, but his hustling wasnt sustainable.
He wanted to take better care of himself.
He realized, I need to spend less time working so I can enjoy life.
Adam Hardy is a staff writer at The Penny Hoarder.
He covers the gig economy, entrepreneurship and unique ways to make money.
Read his latest articles here, or say hi on Twitter@hardyjournalism.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
