Thursday, January 02, 2014

Is it worth using a luxury vehicle to provide ride-sharing services?

Ride-sharing services are in high demand. Lyft, Uber and SideCar lead the way as the most recognized ride-sharing companies in San Francisco. Should ride-sharing drivers use luxury cars to go lyfting?

Are BMW, Mercedes, Audi, Lexus and other luxury cars intended to function as ride-sharing vehicles? It is obvious that driving up large hills could cost a vehicle owner substantial money because this hardcore driving puts wear and tear on these luxury cars. Luxury vehicles are smooth ride. Their comfort is unmatched, where the riding experience is compared to black town cares and limousines.

The main challenge in using luxury cars to perform  ride-sharing services involve the high cost of gas, maintenance and higher accident risk. Ride-sharing drivers are on the road more often, so this constant puts wear and tear on their luxury vehicles.

If luxury car owners use a luxury SUV to drive up and down large city hills in San Francisco, this constant motion may burn oil much faster. Instead of driving 14 in-city miles, a luxury SUV is getting 8 miles a gallon powering up the steep road. After driving 120 miles in the city during any given shift, the cost of gas rises. Ride-sharing drivers will increase their travel expenses with driving long hours. It may cost $1000+ per month to fill-up a luxury SUV.

Maintenance costs such as brakes, tires, oil changes, transmission problems, cooling system issues, shocks, wheel alignment, and other repairs are bound to happen. It is inevitable that performing ride-sharing services as a primary job will potentially wipe out your profit.

Are you still considering ride-sharing services as a job? Want to use your luxury vehicle to drive people around the city for fares as low as $6? Whereas the minimum fare is $6, a cancellation could occur while driving to scoop up a passenger that may only reimburse the driver $4-$5.

Beware that using a luxury vehicle to perform ride-sharing services will increase annual maintenance costs, boost gas expenses, and impact performance. Think twice before you plan to share a ride. Shrink your request radius to less than 2 miles and 1 mille or less for drop off requests.

Good luck on ride-sharing!