ridesharing

How to Get a High Rating and Make More Money as an Uber Driver

Andrea Cannon — Mon, 16 Jan 2017 10:30:25 +0000

If you currently drive for Uber or Lyft, or have considered using your vehicle to make money, then there are some tips you can take advantage of to earn even more. The secret to making the most money out of these services is by getting a high rating. The higher the rating, the more opportunities you'll have. With Lyft, that may mean a larger tip. Uber offers incentive programs to highly rated drivers. Here are some easy ways to earn a high rating while driving for these services. (See also: How to Earn Extra Money Driving for Uber or Lyft)

Provide the Best Service

By offering service above and beyond, you'll ensure a high rating from your passengers. Open the passenger door and help put their luggage in the trunk. Have phone chargers handy for your guests and don't forget to give your riders a high rating so they are more inclined to do the same for you.

Know the Area Well

The best drivers know their area well. They won't make a wrong turn or take the wrong exit because they got confused with the directions on their driving app. They know how to bypass congested areas safely and navigate smoothly. If the passenger thinks you're uneasy with the neighborhood, it'll make them less confident about your ability.

Ignore Your Phone

Many drivers use a Bluetooth headset or check their texts while they're driving. But it's never appropriate if you're on the job. Not to mention it can be illegal to use your phone while driving. You surely won't get a 5 star rating if you get stopped for a ticket.

Keep Your Vehicle Clean

Give your car a regular washing, inside and out. It should also smell clean, so it's a good idea to have a suble air freshener and drive with the windows down when there aren't passengers to air out any lingering odors.

Dress and Act Professionally

One of Uber's highest rated drivers has a simple tip: If you're unhappy, don't come to work. The passengers aren't forcing you to work this job, in fact, they're paying you their hard earned money to provide a service. And just because you're not in an "office" it doesn't mean you should be dressed like you work from home. Dress in clean and neat clothes, and be polite and respectful.

Keep the Music Low

Keep the music at a reasonable volume. Soothing music like jazz or classical can put passengers in a relaxed mood. You can also ask whether they have a preference in music. Some might prefer to have no music at all.

Don't Be Overly Friendly

Your passengers want a positive experience in your vehicle. It's important that you are friendly and sociable, without going overboard. Don't push the conversation, as many riders prefer to be left alone or want to have a conversation with their fellow passenger.

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This article is from Andrea Cannon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Is Uber Saving or Costing You Money?

Andrea Cannon — Wed, 20 Jul 2016 10:30:10 +0000

Uber is more than just convenient; it can actually save you time and money. Everyday commuters are saving hundreds of dollars per month by foregoing their car in favor of rideshare apps like Uber. Businesses are also saving money by using Uber for their business transportation needs, rather than hiring a limo or expensive business vehicle for their employees.

Uber can also be safer than a taxi because it's all managed through the app, so you can always track your driver and leave reviews for them later on. When it comes to largely populated cities like Manhattan, simply ordering an Uber through the app (rather than fighting with people to catch a cab) can be very convenient and save you a lot of time and frustration. You can even automatically pay using the app, so there's no need to carry cash or worry about paying at the end of the ride.

But if you're using Uber often enough, is it actually saving you money? Or is it draining your bank account? Let's investigate.

What Does Uber Cost?

The cost of Uber depends on which car you choose, the time of day, and how far you will be going. For instance, if you choose a traditional UberX vehicle, you will be charged per mile and per minute with a small booking fee of $1.65. If you choose an SUV, the charges per mile will be higher, as well as a base fare of $15, which will cost you a lot more for both short and long rides. A luxury vehicle is even more expensive and the base fare is $20.

For an accurate fare quote, you can either use the app or a site like UberEstimate.com. You simply put in your pickup and drop-off locations and it will give you an accurate price range. You aren't required to tip, and Uber does not offer the capabilities to tip on the app, but your driver will usually accept a cash tip, if you feel like it.

Watch Out for Surge Pricing

Surge pricing occurs when the demand for Uber is higher, such as on the weekends, around holidays, and in inclement weather. The cost of your commute will be higher thanks to surge pricing, which can go up to eight times the normal rate. In these cases, you likely won't save any money using Uber and should instead choose a rental car, public transportation, or even a taxi.

Try UberPool

If you want to save even more money, consider using UberPool. With UberPool, you share a ride with another person who is going on a similar route as you. Then, you split the cost of the trip to save more money. While this will save you more in the end, it won't split the cost in half, so if you don't feel comfortable riding with another passenger, don't bother, as you won't be saving that much.

The Costs of Car Ownership

The average monthly payment for a new car has risen to $483. Just think about what you could do with $483+ extra per month. When it comes to owning a car, there are a number of other expenses beyond the monthly car payment. For instance, there may be a weekly need to fill up on gas and a monthly car wash, at minimum. You will also have to pay for car insurance, registration fees, car maintenance, and car repairs from time to time. The occasional car accident and parking tickets can also add a lot to the cost of car ownership. These basic and unexpected costs can quickly add up to an astronomical amount. (See also: How to Cut Car Ownership Costs)

According to a test conducted by Business Insider, one person's monthly cost of car ownership totaled more than $1,500 in San Francisco, while the cost of public transportation and Uber rides only cost $572 per month. This is an extreme example, as most people won't need to spend nearly this much on transportation, but the savings are obvious.

As a general basis, AAA estimates that the average person will spend $8,876 per year for a new sedan in an average city. To drive the same average amount using Uber, the cost would be $17,095 per year, which is about twice the cost of owning your own car. For this reason, Business Insider recommends using UberX if you drive less than 9,480 miles per year. If you drive more than that, Uber will actually cost you more in the end.

Paying for Parking

If you live in a large city like San Francisco, Los Angeles, or New York, you may also need to pay for parking, both on a monthly basis and whenever you are enjoying a night out. If you're on vacation, your hotel may also charge for parking, particularly if you're staying in the city center. Valet parking, and even self-park options, often total around $25 per night, and even more if those garages charge every time you enter.

How Often Do You Need a Car?

When it comes to owning a car or taking an Uber, you will almost always spend more on the costs of a car, unless you need a car on a daily basis. For instance, if you work from home and don't need a vehicle everyday, then paying for an Uber only when you need it can be a huge money saver. On the other hand, if you travel to work everyday, or live in the suburbs and need to travel for your daily needs, you may need a vehicle of your own.

Who Benefits Most From Uber?

Uber is a great alternative if you are living in a large city and don't need a car on a daily basis. It is also ideal if you don't currently have the credit or funds to purchase a car. On the other hand, even if you have a car, Uber can be a great option for a night you plan on drinking. Rather than trying to hail a taxi or depending on a friend to be the designated driver, you can simply use your app and an Uber will come to you when you're ready to go home.

For quick trips to the airport, Uber can also be ideal. For instance, the cost of parking at LAX can range from $5.95-$30 per day, depending on how far you are willing to park from the terminal, which can really add to the total cost of your trip. According to Time Magazine, if your longest round-trip is the airport to the hotel, Uber can save you money. If you are simply taking a short trip and won't be driving too far out of the immediate surroundings, Uber will be your most affordable, and most convenient, option.

Is a Taxi More Affordable?

According to MIT's Technology Review, taxis are more affordable for rides below $35. However, this all depends on where you live. In Canadian cities, you will almost always save money on Uber, compared to a taxi. To be sure, use an app like OpenStreetCab, PriceRide, or RideGuru to determine whether Uber, Lyft, or a taxi would be more affordable for your next trip.

When Is It Time for a Rental?

If you will need to use Uber from more than one consecutive day, you need to take a long trip, or you need Uber during surge pricing times, then a rental car may be the best way to go. In most cases, having a car at your disposal for both long and short trips is the most convenient option. However, in most cases, using Uber for infrequent traveling needs is your best bet. (See also: Save on Car Rentals With These 10 Easy Hacks)

Promo Codes

Each app, like Uber, Lyft, and Sidecar, offers their own promo codes, so it's in your best interest to try them all out with unique promo codes. You can also send invites to your friends and when they use your link or code to sign up, you will earn more free rides, so it's worth trying. (See also: How to Score Free Rides on Uber, Lyft, and Sidecar)

Alternative Options

Uber and Lyft have transformed the taxi game. There are now also alternative transportation options to improve your ability to get around, such as GetAround (peer-to-peer car sharing), Skurt (rental cars are delivered and picked up from your location), CarzUp (all rental cars in one location), and Swapalease (lease transfer options with no down payments). Make sure to compare the options and prices in your area before deciding on any one particular mode of transportation.

Have you lived a month or more on Uber? What have your experiences been with popular rideshare apps? Please share your thoughts in the comments!

This article is from Andrea Cannon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Here's How Rich You'd Be If You Stopped Driving

Amanda Meadows — Tue, 23 Jun 2015 17:00:15 +0000

Cars are useful, but they can also be an unnecessary burden on your budget. My first car was a sky blue 1993 Mercury Sable. It was a boat of a car, but it was lovely and near-mint because I bought it from a senior citizen who only used it for church and the grocery store. I lived in the suburbs, but I would often carpool with coworkers or take the bus to save money. Eventually, I sold my car and moved to a place walking and biking distance from work and school. With the money I saved, I paid for two years of college tuition!

Here in Los Angeles, walkable neighborhoods are flourishing, plus bike lanes and new rail routes are opening regularly. I rarely need a car to run basic weekly errands. My household shares one Honda Fit and we invest the money saved by not owning a second car. Here's why you should try it, too.

Here's What a Car Costs You Every Year

Let's break down all the costs associated with driving, using average numbers crunched by AAA, assuming annual driving of 15,000 miles.

1. Car

Many people lease their cars; but let's assume you buy yours outright. A car actually depreciates in value everyday you drive it — at an average total of $3,571 per year — depending on the type of car you have, of course.

2. Gas

Let's assume you don't live in major cities like L.A., Seattle, or NYC, where gas is the most expensive in the nation. In most other places, the average cost totals $2,168 per year.

3. Insurance

Another money-pit, insurance is legally mandatory almost everywhere. Depending on your age and driving history, it can be very pricey. The average cost overall is $1,029 per year.

4. Repairs

Depending on your car's age and whether it's domestic or imported, repairs can also be an unavoidable money drain. On average it can be 4.97 cents per mile, or $745.50 per year.

5. Services Like AAA or OnStar

While having a AAA membership is highly recommended, it is an extra cost of $66–$126 per year.

Total Yearly Cost of Driving = $7,513.50*

*Counting for depreciation of the average car per year, so that we can calculate a yearly savings. Car prices vary by make, model, and state of purchase, so I recommend subbing in the first value with your own. Here's a car depreciation calculator.

What if You Invested That $7,513.50? Answer: $$$$

If you thought cutting out $5 lattes was a big investment, this one will make your eyes pop right out of your skull!

I calculated a 10 year plan with a compound interest calculator. Let's say you invest the same amount every year for 10 years, with a conservative 6% interest rate. At the end of year two you're looking at $16,408. In five years, you'll have $44,899. In 10 years? $104,983!

Honestly? If you got rid of your car, you could buy real estate in just 10 years.

Some might argue: "If I ditch my car, I'll spend more on other costs like public transit and Uber!" True, but the difference could be negligible. The costs of those extras is generally not enough to compete with saving what you'd spend on a car — unless you use them with unusually great frequency.

Absolutely Need a Car? Consider Only One Car Per Household

In my household, my husband and I only need one car, as only one of us works outside the home part time. The rest of the week, we work together on our small business. We drive together on business trips. This means better fuel efficiency and ability to use the carpool lane.

Try planning a carpool strategy that allows everyone to get to work and come home together. Here's why. You will benefit from cutting your commute related costs nearly in half, but you will get to spend more time together as spouses, family members, or friends.

How do you decide whose car to keep? See who has the most of the following:

Newest model;
Best fuel MPG;
Fewest recent repairs;
Lowest insurance rate.

If one car is at least three out of four, that's the one to keep! Alternatively, try these six ways to cut car ownership costs.

How are you controlling your transportation costs?

This article is from Amanda Meadows of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Uber, Lyft, and More — Where to Find the Best Rideshare Deals

Amanda Meadows — Fri, 19 Jun 2015 13:00:16 +0000

Learning how to use ridesharing apps is a modern skill you should master, but which service is actually the best deal? We're comparing Uber, Lyft, and other options to make sense of rideshare pricing.

Uber

Uber is definitely the top competitor in the space and they have the most cars on the road in the most cities. In comparison to a taxi, however, it turns out that Uber's pricing only beats the average taxi on trips greater than $35. But the convenience and speed of getting an Uber versus calling a taxi service makes it the better option for many.

Price surging is the main drawback to Uber. If demand is high, Uber will increase the pricing commensurate to demand. This means that in big cities like L.A. or New York, prices can double or more during rush hours and on holidays like New Year's Eve. If you need to get around for as cheap as possible without the prolonged travel time of a bus, the new shared-ride service called Uber Pool can be as low as $3 per person, depending on your destination. You share the car with one or two other riders who are going a similar direction.

Get a fare estimate for any trip using this unaffiliated Uber calculator.

Lyft

Lyft, the app whose cars wear a pink mustache, attempts to be the equivalent of getting a ride from a friend. The overall casual and fun attitude is clear on their app and with their drivers. The best upside: no big price hikes during peak travel times. A downside: Lyft is not as widely available as Uber, but they are working toward adding new cities and drivers.

While Lyft's pricing is comparable to Uber's, it can climb higher when factoring in tipping your driver, which is encouraged. Lyft drivers are generous (expect to find candy, water bottles, and gum in the backseat) and friendly, so you will likely be compelled to tip.

$15 Off first ride for new customers with code: LYFTAFF70457

Sidecar

Sidecar is a smaller, but interesting player in the ridesharing arena. Drivers name their own prices and filter their own rides. Riders get their pricing up front once they type in the destination, and riders get to choose a driver — unlike Uber or Lyft, which both assign whomever takes the request first.

Pricing varies by driver, so while some might be as low as pocket change, others might offer a more luxurious ride for a higher price. The biggest drawback to Sidecar is that it not as available in many cities. If you live in the Bay Area, Seattle, Washington, D.C., San Diego, Chicago, Boston, and Charlotte, it's possible that an Uber or Lyft driver might be moonlighting on Sidecar.

Taxi

Taxi cabs are usually the last resort when you have no choice, and that has worked to the taxi industry's advantage (getting your business) and disadvantage (earning your disdain) for years. That said, taxis don't price surge, they are available at every airport while app drivers are not, and they are licensed professionals whose companies are more liable for their drivers than the app companies, which operate in a legal gray area.

Taxi cabs usually start with a base fare ranging from $2–$5, plus a per-mile rate ranging from $1–$4. You can also find out when Ubers are cheaper than taxis with a new app that neither cab companies nor Uber wants us to know about.

Your Car

There will be times when nothing other than your own car will do: picking up your parents at the airport (good luck trying to get them to use Uber), days full of many tiny errands, or the dreaded trip to Ikea. But with the average gas price in the U.S. varying from $2.30 to $3.90 per gallon, we're all trying to save money on personal car use.

Carpooling has become a more viable option for most people in suburban areas, especially for long commutes and road trips, when you can take advantage of the carpool lanes or have your passengers kick-in a little for sharing the car. Find out how much you can save by carpooling.

The Rankings

Your car is still the cheapest and most convenient choice for most of the U.S., especially for burdensome errands and personal trips. If you carpool, it's an even better deal (though Uber is trying to change that).
Uber, Lyft, and Sidecar's advantages of speed and convenience make them ideal when traveling or on a night out. Of the apps, Uber is the most consistent and the best deal.
Taxis are still the best option for remote locations and select airports because they have access that apps are still trying to gain, but the longer the trip, the more expensive it will be compared to an Uber.

To compare your options in the moment, try using new app PriceRide, which can reveal the best price for any given trip.

What's your favorite ridesharing service?

This article is from Amanda Meadows of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Score Free Rides on Uber, Lyft, and Sidecar

Jen Jones Donatelli — Fri, 22 May 2015 13:00:22 +0000

The story of Blake Jareds acts as both travel hack inspiration and a cautionary tale. Last year, the Long Island native was able to rack up $50,000 in Uber credit via referral codes, but that reward was reduced to $500 when Uber took notice of his exorbitant earnings. However, the way he went about it is pretty savvy — first he created his own legit-looking custom promo code ("UBER$20FREERIDE") to help with search engine optimization, and then he posted that code to Reddit's eFreebies section, where it picked up viral steam.

Although Uber now has rules in place about making codes available to the general public (beyond your own network reach) or paying to advertise them, we can all take a few tips from Jareds' approach to snagging free rides on services like Uber, Lyft, and Sidecar. (After all, even celebs like Lindsay Lohan, Snoop Dogg, and Neil Patrick Harris have gotten in on the action, referring their massive Twitter followers.) And even if you don't have quite the large fan base that Lohan, Snoop, and Harris do, you can still earn valuable coin toward free rides.

Here's how each company's referral program works:

Uber

As an Uber user, both you and the new user you refer will receive a $20 credit in your respective accounts. You can even create your own personalized promo code so that it's easier to remember and share with others. (Here's a useful primer on referral codes, although it's written from a driver's perspective rather than a rider; the advice still works, though.) As of now, there's no ceiling to the amount of credit you can earn — although it must be earned legitimately.

Lyft

Like Uber, both referrer and referee get a $20 credit, and a unique personalized referral code can be created. Unlike Uber, Lyft has a lifetime referral ceiling of $15,000 maximum. However, Lyft is currently sweetening the deal with a promotion in 19 of its markets: Refer three friends and get $60 in referral credits, plus $25 in bonus credits. Refer five friends, and get a $100 credit, plus $50 in bonus credits. Refer 10 friends, and get $200 in referral credits, plus $100 in bonus credits.

Sidecar

Through its "Refer-a-Friend" program, new users get $20 in ride credit, while the referring user gets $10 to use toward future Sidecar rides. Currently, Sidecar is only available in San Francisco, Oakland, Los Angeles, San Diego, Long Beach, Seattle, Chicago, Boston, Charlotte, and Washington, D.C. Users can also save up to 50% off by taking advantage of its unique ride-sharing program.

Extending Your Referral Reach

These amounts are often in flux, as each company often runs promotions or adjusts the current amount of credit given. Consider subscribing to the Uber Blog, Lyft Blog, and Sidecar Blog to stay up-to-date on the latest and greatest savings.

Also, think about ways you can pump up your earning prospects by reaching out to your greater network. Are you a blogger? Share your referral code with your readers. Have a lot of Facebook friends? Let them know about your unique code — and reap the rewards! Work at a place that gets a lot of foot traffic? Put out referral cards on your desk or another common area, and watch the referrals roll in. (Here's more information on how to order snazzy-looking Lyft referral cards and Uber referral cards.)

And if you're in a market where Lyft, Uber, or Sidecar is relatively new, take advantage of your early adapter savvy by making others the wiser. (Here's a great blog post from someone who snagged $1,500 in Uber credits by spreading the word when the service came to State College, Pennsylvania.) Unlike some programs, it's a win-win situation for people on either side of the referral — and you might be surprised at how quickly the credits stack up.

Have you racked up referral credits? Tell us how!

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This article is from Jen Jones Donatelli of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Earn Extra Money Driving for Uber or Lyft

Linsey Knerl — Thu, 14 May 2015 17:00:26 +0000

Have you ever been in such a rush that you didn't want to wait on a taxi or pay their high fares? This is the very idea that ridesharing services such as Uber and Lyft were born out of. Since these companies use local drivers who supply their own vehicles, it can be a great side job for many people who realize they can also make money by driving for them. It's straightforward and can generate some decent extra income. Here's what you need, and what you can earn.

What Do You Need to Be a Driver for Uber and Lyft?

Uber offers four different classes of services (uberX, uberXL, uberBLACK and uberSUV), which each require different classes of vehicles newer than 10 years old (some markets require vehicles from 2011 or newer). The most common service is uberX; it is also the low-fare service, making it a lower-earning option.

In addition:

UberX requires a four-door, non-luxury sedan of any color.
UberXL requires any color of SUV that is able to seat six comfortably.
UberBlack and UberSUV are similar to UberX and UberXL, however the vehicle interior and exterior both have to be black. In addition to the color requirement, you also have to maintain a 4.6 Uber Driver rating in order to be eligible.

Uber also offers vehicle financing in select markets if you do not have a vehicle that meets the above requirements.

To drive for Uber you must:

Be 21 years old or older
Be a licensed driver with a clean record
Carry vehicle insurance
Own a smartphone for using the Uber App

With Lyft, your vehicle must be a four-door car that is newer than a 2003 model in most markets; however, some do require that the vehicle be no older than 10 years.

To drive for Lyft, you must:

Be 21 years old or older
Be a licensed driver with a clean record in the state you'll be offering Lyft services
Carry vehicle insurance in your name
Have current vehicle registration with in-state licence plates
Own a smartphone for using the Lyft App

How to Start Making Money

Once you've met all the above requirements, it's time to actually sign up to be an independent contractor. First you'll need to see if the services are available in an area where you'd be able to offer your services. Not only is Uber available in more cities and is used more frequently than the other ridesharing services, but drivers typically make more per trip than any of the other ridesharing services.

To sign up for Uber, you'll need to fill out a quick form and provide copies of your driver's license, vehicle registration, insurance, and photos of your front bumper and vehicle interior. You will also have to undergo and pass a motor vehicle record screening and federal background check, which takes some time to complete. As a side note — if you know an Uber driver, get their referral code and you could earn a $100 bonus!

The process to sign up for Lyft is similar to Uber with the addition of a Welcome Ride with a Lyft mentor.

How Much Money to Expect

You are in full control of how often you accept trips, which in the end, affects your overall earnings. Since you're an independent contractor, you have the flexibility to sign up to drive for both companies to maximize your earnings, if you wish. (Two-thirds of rideshare drivers admit to doing just that!) When you're available to drive you simply log on within the app; when you want a break or are unavailable, simply turn it off. This is flexibility at its finest!

Uber drivers make anywhere from $13 to over $30 an hour, while Lyft drivers earn anywhere from $8 to $25 — sometimes slightly more. Peak seasons and events will have an effect on the rates as well, so keep that in mind when choosing the times you wish to drive. (A recent study by SherpaShare noted that over 70% of drivers didn't quit their day job when signing up to drive. They have kept their full-time jobs and drive no more than 40 hours a week.)

Since you'll be an independent contractor providing your own vehicle, you'll be responsible for your own taxes, as well as any additional vehicle maintenance or cleaning fees, which would affect your bottom line.

If you have a car and some free time — with a need for some extra cash — then maybe Uber or Lyft is your solution!

Have you considered driving for a ridesharing service? Why or why not?

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This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: