Updated: 1/19/2020. This is an educational piece about rideshare gigs for potential new drivers who may have lost income due to COVID-19. 

Ridesharing has its origins in the sharing of a ride by passengers heading in the same direction. Traditionally, car drivers or owners offered it as a paid service to people looking to ride along their route. The advantage? Splitting of the fare between passengers reduced travel costs. For drivers, it was a great way to lower the cost of their trip. Passengers, who didn’t own a vehicle or didn’t want to use one for various reasons, saw it as a cheaper alternative to taxis. With rideshare, the result was a win-win for everyone.

Ridesharing today still retains the fundamental elements of this model. But technology has transformed this service into an industry that employs millions of people worldwide. With Uber’s success, others like Lyft, Hitch, RideScout, Zimride, and Trees for Cars followed. For those new to rideshare, this article delves into the basics and helps you get started.

What Is Ridesharing?

Ridesharing connects passengers who require transportation services to drivers willing to provide them by using an app-based platform. This arrangement means that riders can book a ride online and on-demand without leaving the comfort of their homes. These services offer pooling as well as regular rides to passengers for different vehicle classes. Drivers are private car owners and can not be hailed on the street like taxi drivers.

According to a 2020 Los Angeles study, rideshares were 40% cheaper, had 75% shorter wait times, and provided almost guaranteed rides compared to 20% of taxi drivers who never showed up. Modern rideshare takes convenience and cost-effectiveness to a whole new level.

Difference Between Rideshare And Traditional Taxis

1. As opposed to taxis, rideshares are typically provided on demand at short notice. But this is changing with the launch of services like Uber Reserve.
2. Pickup and drop-off locations are made known in advance. So, the driver knows the destination before you get into the car.
3. Most rideshare services display estimated fares upfront providing greater transparency as opposed to metered taxi fares.
4. With rideshare, payments are automatically processed through online methods like credit cards without requiring manual intervention by the rider.
5. Taxi services are heavily regulated by the government, while rideshares don’t fall under the same ambit. But many countries have introduced laws to remedy the situation and bring rideshare companies under state or federal regulation.
6. Drivers working with rideshare companies are independent contractors, while those working for taxi companies are likely to be employees. However, there’s a strong push in the US and Europe for rideshare drivers to be classified as employees.

How To Start Ridesharing

If you’re thinking about working as a rideshare driver, Uber and Lyft have the largest market share. Before you start, here are some things to consider.

Eligibility

Both Uber and Lyft have similar requirements for you to start working with them. You must:

1. Meet the minimum age requirements for your city. Both require at least one year of driving experience in the US. Uber mandates three years of experience if you are below 23 years of age.
2. Have a valid driver’s license.
3. Have an eligible four-door vehicle. If you don’t, both Uber and Lyft allow you to rent one.

You must also have a smartphone to install the Uber or Lyft app and get rides.

Signing Up

To sign up as a rideshare driver, you will have to:

1. Provide information about yourself and your vehicle.
2. Submit a forward-facing photo and copies of your driver’s license and residence proof. Vehicle registration and insurance information have to be provided if you’re using your car.
3. Consent to a background check for verifying your driving record and criminal history. Lyft also requires a vehicle inspection in some regions.
4. Meet any other requirements specific to your city. You can check for these on their site.

Once the verification is complete, your account will be activated, and you will be notified by Uber. You can then download the app on your smartphone, log in, and start earning.

Things to Remember

1. Trip earnings typically include base fare (estimated by distance and time) and surge pricing (during busy times). Other contributors might be income from picking up additional passengers when pooling or waiting charges, among other things. 
2. Keep an eye out for promotions to boost earnings. Tips are extra but optional.
3. You can work with multiple rideshare companies at a time to maximize income and reduce downtime.
4. Rideshare companies do not reimburse costs for fuel, vehicle maintenance, and phone data.
5. Customer feedback is the most vital metric for measuring a driver’s performance and factors into driver retention.
6. Providing good service is key to a good rating and better tips.

Conclusion

For those who enjoy driving, rideshare can be a viable option to earn money in the gig economy. Whether you’re looking to engage in a full-on hustle or make a little extra money on the side, you can take advantage of the flexibility offered by rideshare companies. Signing up is the first step to determine whether it works for you in the long run.