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Monday, September 22, 2014

Taxi Drivers have it better than Ridesharing Drivers

Why do taxi drivers have an advantage over ridesharing drivers?

UberX and Lyft pay their drivers once a week, on Thursday morning. For rides given on the following days, this is how long ridesharing drivers must wait to get paid.

Monday - 10 days
Tuesday - 9 days
Wednesday - 8 days
Thursday - 7 days
Friday - 6 days
Saturday - 5 days
Sunday - 4 days

For drivers who lack the finances to wait, their best bet is to drive between Friday and Sunday. It is worth investing money on gas to drive on the weekend. The payment turnaround for rides given on these days is only 4-6 days. Nevertheless, ridesharing drivers may want to rethink driving Monday and Tuesday because these rides won't get paid out for 9-10 days.

Drivers depend on gas to transport clients. When their direct deposits arrive on Thursday morning, this money is already spent on bills and gas from the previous week. One female UberX driver shared that she had to get a loan to pay bills when Uber delayed the direct deposit one day due to the holiday. This delay also caused another UberX driver problems, as they wrote a check a week prior to cover repairs and this amount would be deducted on Thursday. They had to scramble around to borrow funds and cover this check. For the most part, the check cleared on Thursday.

Ridesharing companies assume a direct deposit delay is no problem. One day can be a difference between a bill clearing and/or getting returned. This eliminates any courtesies given to bank customers due to another previous delay in direct deposits. Whereas ridesharing companies say it's not their fault and point the finger to the payment processing company, the fact is that ridesharing drivers are without this money to get gas. They miss valuable shifts waiting to get paid.

On the opposing side, SideCar pays out 5 days later. This is a good ridesharing company to explore. Rides given on Monday and Tuesday are ready for payment, and will be deposited on Monday (Monday rides for sure and maybe Tuesday rides) and Tuesday (Tuesday rides for sure) of the next week. The weekend influences the payment process, because banks don't usually accept these direct deposits on non- business days. Instead of waiting 10 days to get paid for Monday rides and 9 days for Tuesday rides at UberX and Lyft, ridesharing drivers at SideCar can get paid in approximately 7 days. It takes SideCar a day to pay approved funds out. After midnight on the 5th day of giving rides, drivers can request payment and this money will likely be deposited the next day. Submit payment prior to 2pm PST and get paid the next morning.

UberX drivers don't get tips. Lyft and SideCar drivers can receive tips. Passengers can increase the amount of the ride fare and reward their drivers. According to an UberX client who knows the policy, drivers can turn down cash tips and clients are permitted to leave a tip. Don't ever count on San Francisco clients leaving cash tips because they are too cheap. However, Napa and East Bay clients have given cash tips. It's rare to receive a cash tip, which as seeing the same client twice never happens. It does happen, maybe when there is a red moon, which is also rare.

Taxi drivers are privileged to receive cash and credit card tips. They can get paid in cash fares. Taxi drivers have money to drive daily. Ridesharing drivers have to wait once a week to get paid. It is risk for them to spend on gas and drive during slow Monday-Wednesday shifts because these rides take 8-10 days to receive payment.

Taxi drivers lease taxis, tip dispatchers, and pay for gas. There is no problem for taxi drivers to make money. However, ridesharing drivers are struggling to earn money. With fare reductions, unorthodox payment schedule, repairs on personal vehicles, receiving possible tickets to make client pickups near bus zones, minimal gas funds, bad wear and tear on personal vehicles, and all other setbacks, taxis have a clear competitive edge.

Why do taxi drivers complain? Ridesharing drivers must work 60 hours to clear $1100-$1200 in a week. The cost of gas and car repairs will bury these drivers. Taxi drivers can lease a taxi and not worry if this car breaks down. If a cab is operable, they can probably request another. That is the thrill in being a taxi driver, as opposed to a struggling ridesharing driver.

In ridesharing services, all the cost is deferred to the driver. If a door is broken and the shop keeps this car a week, the driver is unable to work. They are not approved to use any other car besides what is listed in their driver account. It is best to add two cars on a driver account. This action may prevent unfortunate moments where unplanned repairs ground drivers.

In time, the taxi industry will rebound and reclaim the transportation business. It is only time before ridesharing drivers realize there is no money in ridesharing and they will go bankrupt and destroy their personal vehicles. Ridesharing companies take out commission and also deduct safe rides fees. After the cost of gas, the time spend on the roads is really not worth the time and effort. Let's not forget that you must pay taxes later. The cost to fuel up and give rides is so enormous, it is ridiculous. Your personal vehicle will eventually become a piece of scrap metal.

Taxi drivers should continue doing what they are doing. Ridesharing ads claiming to be cheaper than taxis will soon fade away once drivers struggle to get on the road. For several ridesharing drivers, they claim this was the worst job they have ever done and regret taking the road. Rude clients, vomiting riders, clients stealing and breaking things, excessive gas and toll cost, passengers harassing and threatening drivers, obnoxious riders, maintenance, taxis harassing drivers, drivers getting offered to use drugs and turn this rider down, slow pay system, late payments, constant media criticism and all else that comes along with ridesharing, this should never be a primary job.

Don't believe in all the hype. The tricky advertisements are a strategy to hook financially strapped drivers. In a previous article, you can beat the odds and become successful as a ridesharing driver. Think of this like an actor trying to land a role. Not all actors are successful. A small sample of actors actually reach stardom. Some struggling actors know what it takes to reach the gold. Then, there are the remainder of actors who must return to real life. Actors are commonly servers in restaurants, because this gives them the flexibility to schedule auditions.

Ridesharing drivers can have an advantage with maintaining a primary job and performing ridesharing services on weekends. It is also good to drive during the evening rush hours and on Thursday evenings. Know how the process works and take advantage of this opportunity. Drive during promotions and special events. Surge prices are Prime Time will make you plenty of money. If you drive for SideCar, set a higher fare multiplier during busy times.

Even with all the ridesharing strategies, taxi drivers have a clear advantage. They lease their vehicles, get cash fares, cash tips, credit card tips and have reliable resources to keep driving weekly. Ridesharing drivers give rides and must have money in the bank to keep going. By the time their direct deposit reaches, this money is already gone. Unfortunately, there is nothing left to drive on weekends. Believe it or not, you have learn the downside of ridesharing yourself. Clients/riders/passengers have a clear advantage, as well. As prices drop and promotions are offered, these transit users can save a bundle and won't need a personal vehicle.

Ridesharing drivers can get deactivated without no reason, except the usual rating score. A client can complain and get a driver terminated right way. Taxi drivers have more protection to avoid this unethical action that ridesharing companies use to weed out what they believe are inferior drivers. These are the same drivers thriving on other ridesharing platforms. Lyft is the worst of the bunch for deactivating drivers. This ridesharing company will deactivate you on Christmas, and even your birthday. No loyalty at Lyft, just a deceptive Pink facade that makes ridesharing seem like a fun community. Find out for yourself if Lyft is a model ridesharing platform.

Good luck making your decision. If you want to try the ridesharing services such as UberX and SideCar, we have promotion codes available on the side panels. Still want to drive after reading this post? Visit the links displayed on top of this website and sign up to become a SideCar driver and/or an UberX driver. Find out for yourself if ridesharing is right for you. For the most part, taxi drivers can give all types of rides (hails) and can use many lanes (reserved taxi spots and lanes) that ridesharing drivers cannot. Ridesharing services are inferior in the transportation industry.