Millions of people are joining the on-demand economy, also known as the gig economy, in order to earn extra cash as independent contractors. Whether you own a car that you want to rent out, or you are listing a spare room or apartment on Airbnb, there is a huge opportunity to earn money in the gig economy.
They’re working part-time for companies that provide on-demand goods and services to consumers, usually through an app.
Driving for rideshare companies like Uber or Lyft is one of the most popular jobs in the on-demand economy. Obviously, you need a qualified car to be a rideshare driver. Let’s say you don’t currently own a vehicle that can be used for ridesharing. Should you buy one or rent one?
Leasing or owning a car used for ridesharing, as well as personal use, can be extra costly, due to huge down payments, high interest on your monthly payments, frequent gas fill-ups, and increases in car washes and scheduled maintenance services. Which is why many rideshare drivers are saving money by renting their cars. Not from giant, pricey companies like Avis or Hertz, but more affordably through car sharing services like HyreCar and Turo.
Similar to how Airbnb works in the sharing economy, car sharing means someone who owns a vehicle, one they don’t use very often, lists it with a car sharing service, which in turn rents it out to drivers who need a car for short periods of time.
When it comes to car sharing, both HyreCar and Turo offer similar services. However, there are definitely some differences in quality and trust that you should know about. Let’s talk about the main categories you should consider when choosing the best car sharing company for you.
How It Works
For Drivers: It only takes six easy steps to rent a car from an owner who has listed their vehicle with HyreCar.
- Sign up using Facebook, Google or Email. HyreCar will run a quick background check to verify your ridesharing status and eligibility. This is so you can be approved as a driver, which usually only takes a few hours.
- Browse online for cars in your area. You’ll see clear photos of the various cars in HyreCar’s vast selection. HyreCar also provides the daily rental charge the owners are asking as well as the distance each car is from your current location. HyreCar has vehicles available in all 50 states.
- When you find a car you like, click “Book Now.” The car’s owner then has 24 hours to approve or decline your request.
- Once the owner approves your request, you’ll receive vehicle registration, 19-point inspection, and rideshare insurance documents. These three docs need to be uploaded to your Uber and/or Lyft driver accounts. (How much is rideshare insurance? Don’t worry about it! HyreCar includes rideshare insurance with every rental) Then, arrange a meet up with the owner so you can inspect and pick up the car in person. Sometimes, owners will even deliver the car to you, so don’t be afraid to ask! Finally, confirm the damage waiver and present your license to the owner.
- Now it’s time to slide behind the wheel and start earning some sweet, extra cash by driving for ride-sharing services like Uber, Lyft, or DoorDash. Oh, and HyreCar makes it super easy If you need to extend your rental.
- When you’re ready to return the car, fill up the tank before you bring it back to the owner, and make sure you rate the owner and your experience with the car. Treat the car like you own it because owners also rate the drivers they rent to.
For Owners: Here are the five basic steps for renting out your car.
- Register your car with HyreCar, at no cost. Get the vehicle inspected, then upload your registration, your Uber/Lyft inspection documents, and quality photos of the vehicle. Make sure the photos are sharp and clear, showing the cleanliness and condition of the car’s exterior and interior.
- You’ll receive a notification when someone wants to rent your car. We recommend responding ASAP, to make sure another owner doesn’t rent their vehicle to the interested driver before you do!
- Once you’ve approved the driver, arrange to meet them so they can pick up your car. Be sure to verify that all your vehicle documents (registration, etc) are up to date.
- Meet the driver! Make sure the driver’s insurance is up to date and verify their license. Then inspect the condition of your car together, check the fuel and mileage, and hand over the keys.
- When the driver no longer wishes to rent your car, arrange a meeting so they can return it to you. Inspect the car for any damages, rate the driver, and take the keys back. Then, list your car as available for rent again and earn more extra cash!
NOTE: Once you’ve successfully listed your vehicle on the HyreCar platform, you should consider using Neighbor to rent out the (now) empty space in your garage or driveway.
HyreCar’s cancellation policy is as follows:
For Drivers: Drivers can easily cancel before or after an owner approves their application to rent a car, as long as the cancellation occurs prior to picking up the vehicle. In both cases, a driver must contact HyreCar support to put the cancellation in motion. If a driver does cancel after already being charged for the rental, (but again, before pickup) HyreCar will give the driver a full refund if the reason for cancellation is deemed reasonable.
When a driver cancels the rental after pickup, say, due to car problems or just to return the car earlier than expected, HyreCar will reimburse a monetary amount based on days left in the rental, minus processing fees.
For Owners: As long as insurance has not been issued, owners may cancel up to two times a month by contacting HyreCar support. More than that and the owner may be at risk for the deactivation of their account. Cancellation fees may also be incurred.
How Does Insurance Work?
HyreCar’s insurance policy is pretty straightforward and easy to understand. It covers you when you’re driving your rental vehicle on the way to pick up, or after dropping off, passengers, but not when passengers are in the car. This is very similar to most ridesharing insurance policies. Here are the basics:
- HyreCar’s driver policy covers up to $25,000 of vehicle damage and up to $300,000 liability.
- There is a $2,500 deductible for all damages for drivers.
- Insurance begins and ends at the start and end time of your rental. If you extend your rental, you’ll want to make sure your insurance coverage gets extended as well.
- Uber or Lyft’s own rideshare insurance policies override HyreCar’s policy when you have passengers in the car.
- HyreCar’s policy is $10 a day (this is for drivers only). The cost is included in the rental fee.
- You are required to have personal auto insurance at the state minimum.
What Do The Reviews Say?
According to this The RideShare Guy review, renting a vehicle through HyreCar is an easy, positive experience. Here’s why:
- Customer service is excellent and easy to access.
- Trust and safety are established through HyreCar’s scam vetting process.
- There are thousands of high-quality affordable cars that are perfect for rideshare driving services like Uber X and Uber XL. Plus, there is a nice selection of luxury vehicles available for upper levels of Uber-like Uber Select, Uber SUV, and Uber Black.
- The costs of vehicle maintenance and depreciation are built into the price of the rental. You’d have to pay these yourself if you owned your own car.
- HyreCar provides flexibility, meaning it’s pretty simple and quick to get in and out of rentals.
How It Works
For Drivers: Signing up for renting a vehicle through Turo is very similar to HyreCar’s sign up process. Here are the five steps for drivers:
- You create an account with Facebook, Gmail, or your email account. Then, wait for approval.
- Once approved, search for cars in your area.
- Book your vehicle. Some cars have a Book Instantly option. Vehicle owners have up to 8 hours to respond to your request.
- Arrange for vehicle pick up with the owner. You can also have the car delivered for a fee. (HyreCar owners do not charge a fee to deliver a rented vehicle to a driver) Then present your license at pick up.
- Return the car at the location you’ve arranged with the owner, after filling the car up with gas.
For Owners: Four easy steps for owners to list their cars with Turo:
- Create a free account. Describe your car in detail and upload quality photos of it. Keep your calendar of car availability updated for potential drivers.
- Respond quickly when you get a request for your car.
- Arrange to meet with the driver at a mutually convenient time and place. Do a check of your car’s condition, mileage, and how much gas is in the tank. Make sure all documents are up to date that the driver has a valid license.
- Pick your car back up from the driver at the arranged time and location. Make sure you rate your experience with the driver when it’s all done.
Turo’s cancellation policy is as follows:
For Drivers: 100% of the trip price will be refunded to the driver up to seven days before the trip begins. After seven days, 90% of the trip price will be refunded. If the cancellation is less than 24 hours before the trip, no refund will be offered. Once you’re one hour into the trip, the FEE is non-refundable.
For Owners: Owners must notify Turo support and the driver of a cancellation at least 72 hours in advance. If it is less than 72 hours before a trip begins,, the vehicle’s owner will be fined $50, and risk being removed from the marketplace.
How Does Insurance Work?
Turo’s Insurance policy is a somewhat more complicated than HyreCar’s insurance policy. Here are the basics regarding Turo insurance, but you might want to do some further research on your own before driving or renting with the company. Important: You need to have your own personal insurance in order to register your car with Turo as an owner. Drivers looking to rent do not need personal auto insurance.
- Turo offers 4 insurance options for coverage: Owner Provided, Basic, Standard, and Premium.
- Owner Provided: If the owner of the car is a car rental company that provides its own insurance, renters purchase insurance directly through that company. Turo must approve of the insurance policy.
- Basic: Liability coverage up to the minimum required by the state where the car is registered, which can be pretty low depending on the state. Physical damage deductible is $3000.
- Standard: This insurance option has no physical damage deductible and it does not cover loss of income or exterior wear and tear.
- Premium: Offers liability coverage up to $1,000,000 while physical damage to the car is covered up to the actual cash value of the vehicle.. In each case, coverage is secondary to any other insurance you may already have. There is no deductible for the supplemental liability coverage. Once you’ve exhausted your own insurance for physical damage your out-of-pocket exposure is limited to $500.
- Owner Provided allows the owner to keep 90% of the trip price.
- Basic coverage costs 15% of the trip price (10% in Canada).
- Standard coverage costs 25% of the trip price.
- Premium coverage costs 35% of the trip price.
What Do The Reviews Say?
A RideSharingDriver.com blogger recently posted a review of his experience renting from Turo. Here are some of his main pros and cons:
- The blogger writes that If you’re looking to rent a high-quality vehicle at a decent price,, say like a BMW, Turo is a good peer to peer car sharing service to choose, as they are competitive price-wise with big name rental companies.
- However, the blogger found Turo’s insurance policies to somewhat complicated, so he just chose the basic package to get started. Later, his research showed that if a driver gets in a major accident while carrying the basic package, he or she will most likely end up paying a lot out of pocket for damages.
- There were a lot of cars to choose from and It was easy to search for and select a car.
- Coordinating with an owner is a little more work with Turo than a general rental would be, which may not appeal to some.
- Because of added fees (insurance protection, gas), the listed price may not be reflective of your actual total.
- He wasn’t crazy about steep delivery fees that Turo tacks on if you don’t pick up your rental in person from the owner. For example, having the owner deliver the car to you costs an extra $20.
Summary: How Do HyreCar and Turo Compare?
If you’re thinking of renting a car for Uber driving or other rideshare companies, we recommend HyreCar for a few important reasons.
Turo is meant to be a substitute for your regular car rental service, which might make it a good choice for a weekend drive or a business trip, but makes it less ideal if you’re hoping to use it to make money with Uber or Lyft for weeks or months at a time. There are two main reasons for this:
- Turo’s insurance policy is a lot more complicated and a lot less cost-effective than HyreCar’s. Because of this, drivers might make a less-than-educated choice regarding coverage. Turo’s basic coverage doesn’t really “cover” very much, and If you do choose their premium coverage, the price of your rental skyrockets, meaning it will take you longer to break even as a rideshare driver.
- HyreCar’s cancellation policy is squarely aimed at drivers using their rental for ridesharing purposes, so it’s much more driver friendly as far as refunds go. With Turo, there’s zero chance of a refund if a driver cancels less than 24 hours before the rental begins. The same goes for owners who cancel a rental less than three days in advance.
If you’re looking into driving a rideshare rental, we suggest HyreCar. Drive safely and happy ridesharing!