Tuesday, September 23, 2014

First Ridesharing Ride is taken with Lyft

An UberX driver takes their first ride with Lyft in Los Angeles. According to his Lyft driver, ridesharing prices have gone way down in Los Angeles in result of Lyft lowering fares per mile, per minute, per pickup. Whenever Lyft drives down competition, Uber and SideCar follow suit.

This UberX driver enjoyed talking to his Lyft driver, who shared that he also drives for UberX. The Southern California ridesharing driver invests 14 hours per day performing ridesharing services. He starts driving at 5am in the morning and stops his wheels turning at 8pm-9pm. Nevertheless, this ridesharing driver claims to earn $70k-80k driving these hours. He drives 350 miles per day, 7 days a week. For the most part, this driver really enjoys driving and meeting new people.

Based on the hours this Lyft puts in per day (14), per week (98), per month (392) per year (4,704), we calculated his hourly earnings at between $14.88 and $17.01. Essentially, this ridesharing driver maintains $70-$80k annually driving 98 hours per week. He drives 350 miles per day. Nevertheless, he completes between 20-40 rides per day.

Does ridesharing seem that appealing now? Do you want to live on the road? Want to deal with many personalities? Drunk riders coming from bars, games, and restaurants? This ridesharing driver rarely drives the drunk population and laughs about past stories regarding a few rider vomit episodes. It's obvious that he is comfortable doing what he does.

Lyft and UberX online ads claim that drivers can earn as much as $70-80k performing ridesharing services. Competition between Lyft and UberX have lowered fares too low. Currently, the cost to use Lyft and UberX in Southern California are shown below:

Pickup $.90
Per Mile $1.13
Per Minute $0.26
Safety Fee $1
Minimum ride cost: $3

Base Fare $.80
Per Mile $1.10
Per Minute $.21
Safe Rides Fee $1
Minimum fare $4

After this UberX driver held a valuable discussion on ridesharing services with a Southern California ridesharing driver, we now can see more transparency in ride app earnings. These stats don't lie to trick people into deceptive earnings; they are accurate figures that show how much a serious ridesharing driver can earn taking the road nearly 100 hours per week. Ridesharing drivers must treat this gig as a full-time job, living and breathing ridesharing, day-in, day-out.

How many drivers can afford to take the road 100 hours per week? Are ridesharing drivers capable of working 80-100 hours per week on a limited budget? Would you pull all-nighters for two weeks straight to build a budget? Will your personal vehicle hold up? How much are car repairs costing you? Oil changes? Brake change? Tire change? Snacks? Water? Supplies? Car washes? Detailing?  

These are important questions to ask yourself as a novice ridesharing driver. The UberX driver's first ridesharing experience as a passenger gave us useful data to shed light on driver earnings. In essence, market research on ridesharing helps new and existing drivers make better driving decisions. Novice drivers can schedule driving around primary jobs, or choose to make ridesharing a full-time job.

Is make $14.88-$17.01 driving people that exciting? Would you risk destroying your vehicle to make this money? These hourly earnings don't take into account other expenses involved in the ridesharing game. As this Lyft driver shared, you take the good and the bad. One ride may make them $3, another may give $35, and then an even better score is taking a longer ride to make over $50+.

Folks, this is real rundown on how ridesharing works. Give karma rides to help people, and you'll get rewarded with lucrative fares. If drivers invest 98 hours per week in Southern California, they may make between $5,833.33 and $6,666.67 per month.

In Northern California, in the Bay Area, and especially in San Francisco - the heart of ridesharing innovation - ridesharing drivers are likely to earn these amounts ($5,8333.33-$6,666,67 monthly) driving less than 100 hours because these cities are more dense and riders prefer to use ridesharing services often. As we move further away from the Bay Area, these earnings drop and drivers must increase their hours to make up for this difference.

However, UberX drivers in NYC may earn good money but there are restrictions in these busy areas and may create unexpected challenges. The best ridesharing fares are long rides, airport trips, and quicker rides. Fast pickup times, clients who are ready quick, and always having a client in your ride can keep money rolling into your bank account. Wear and tear on personal vehicles and gas will eventually sink drivers. It is not worth using a dream car as a ridesharing revenue generator. Use ridesharing to find your real career. Make ridesharing the vehicle to launch your lifelong dreams.

The first ridesharing experience for this ridesharing driver equipped us with real data, real facts. For ridesharing drivers who want to make money, they have to get on the road and work many hours. The Lyft driver shared that he has no bottom-line. The fares can travel to rock bottom, and he will still continue to drive. The UberX and Lyft drivers agreed that with new fare reductions that drivers must increase their hours, take more trips and increase mileage to make up the difference.

It is a deception to convince drivers that reducing fares will increase their overall earnings. Withholding valuable stats keep drivers on the road. There is no data to analyze, so drivers won't questions this reduced fares. Of course, drivers will see good rides now reduced down to unappealing fares. It is not that exciting to drive further and make less. As these two drivers agree, having that added flexibility to earn without a boss breathing down their backs is priceless. Rideshare ahead!