Wednesday, August 06, 2014

New startup claims to give drivers access to Lyft earnings in real-time - ActiveHours

A recent posting on Facebook introduced us to ActiveHours, a startup that is now targeting Lyft driver earnings. In this post, the startup company claims it will fund earnings in real-time.

Imagine the doors this will open for ridesharing drivers who are unable to get on the road once their gas is depleted and they can't afford toll charges to drive across toll bridges.

There are many ridesharing drivers who can't afford to drive because their earnings are exhausted on car repairs and bills. This financial disparity keeps them off the road, where other competitors can thrive in the absence of grounded drivers.

If ActiveHours can work for Lyft drivers, maybe they can open their doors to Uber and SideCar earnings. Drivers can't afford to wait a week to get paid, because trips they make 9-10 days before the next deposit deplete their bank accounts.

Drive on Monday and Tuesday of this week and don't get paid until next Thursday morning. By the time this week's deposit arrives, this money is already spent on current bills. Therefore, no money is left to drive on the weekends. Drivers are forced to work in high risk areas where there are no-shows, longer pick-ups, and questionable riders.

Introducing a pay system to receive earned funds right way is possibly the best idea ever. Payday loans cost far too much and borrowers are on the hook for paying outrageous fees. Perhaps, utilizing a pay structure such as ActiveHours will solve driving problems associated with driving with empty tanks and bank accounts.

We already pitched an idea that ride app companies should implement a draw against the next check. If drivers can get access to borrowed funds like $200, this could put them on the roads during the weekend peak times. No gas, no driving. A full tank means more earnings to cover the borrowed funds. It also makes ride app companies more money with additional commission.

We don't know anything about ActiveHours. This startup is definitely shining bright on ridesharing drivers. It is a great idea to give access to earned funds. These funds can reduce fees associated with payday loans. What is the catch to financing drivers? We will soon find out.