Which ridesharing Service is worth your time?

Everything You Ever Needed To Know About Making Money In On-Demand Industries

 

The rising popularity of on-demand services has caused entire swathes of the population to seek work in unexpected and novel places. With the unemployment rate in the United States hovering at 9%, people are turning to companies like Uber, Lyft and Instacart for financial stability, supplemental income and, most of all, opportunity. But with the variety of service models on offer, how can would-be workers optimize their time? What model allows users to maximize their gains?

 

In this guide, we’re going to take a closer look at some of the major players of the on-demand industry. From ridesharing with Uber to tasksharing with TaskRabbit, we’re going to pull back the veil and take a long, hard look at the numbers. For anyone considering entry into one the many on-demand markets, we hope that this examination helps you make a calculated, informed decision that caters to your individual skills and interests while also providing you with an alternative, but no less lucrative, source of income.

 

Note: In order to present meaningful statistics, it was occasionally necessary to make assumptions about each service to inform the data. Where made, these assumptions are listed after the introduction of each section and, in all cases, are based on user testimony, company data or documented analyses. These assumptions will be based on data in San Francisco, California and may not be consistent with what you have experienced. This article is updated as of March 26nd, 2015.

Disclaimer: If you feel that any of the information in this article is inaccurate for any reason, we humbly request that you email us or comment below. We welcome all criticism in the effort to supply the most accurate information possible.

Ridesharing

 

Ridesharing has been around since the 1990s where it faced a number of early obstacles that prevented its initial growth. All of that changed in the late 2000s, when Uber leveraged the power of smartphones and the Internet to propel their company into the public eye. With a host of competitors now entering the market, ridesharing has grown into a multi-million dollar industry with companies operating in every major city in the United States.

 

Note: All figures in this section are based on user testimony and interviews with drivers who are active in the San Francisco area. It should be noted that these drivers are experienced drivers who are familiar with optimal driving times and city routes. Where applicable, we have provided screenshots of user accounts as evidence of how these figures were determined. No guarantee can be made for personal results as earnings often vary with the level of an individual driver’s experience.

Uber X

uber x income

Base fare: $2.20

Per minute rate: $0.26

Per mile rate: $1.30

Uber’s economy offering, Uber X, requires less money upfront from both passengers and drivers. Requiring only a non-luxury sedan and the ability to seat four passengers, Uber X allows drivers to test the ridesharing waters without heavily investing in a premium-approved vehicle.

Potential income (based on documented user testimony)

Hourly: $32.00

Daily (8 hours): $256.00

Monthly (160 hours): $5,120.00

Uber commission (monthly): -$1,024.00

Uber iphone fees (monthly): -$40.00

Gas (monthly): -$480.00

Insurance (monthly): -$120.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $3,381.00

 

Uber Black

uber black income

Stepping up from Uber X, Uber’s premium service has more stringent requirements. A Black-certified car must be a luxury sedan or crossover, seat four passengers and have a black interior and exterior. While the upfront costs may be higher, Uber Black drivers are able to earn considerably more than Uber X drivers.

 

Base fare: $8.00

Per minute rate: $0.65

Per mile rate: $3.75

Potential income (based on documented user testimony)

Hourly: $50.00

Daily (8 hours): $400.00

Monthly (160 hours): $8,000.00

Uber commission (monthly): -$2,000.00

Gas (monthly): -$640.00

Insurance (monthly): -$355.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $4,890.00

 

Uber SUV

uber suv income

For those drivers seeking to maximize their income with Uber, the company’s SUV service may be the optimal choice. Requiring a black, full-sized luxury SUV that seats six passengers, drivers for Uber SUV earn higher rates than Black drivers, though these earnings are partially offset by higher monthly costs.

 

Base fare: $15.00

Per minute rate: $0.90

Per mile rate: $3.75

Potential income (based on documented user testimony)

Hourly: $50.00

Daily (8 hours): $400.00

Monthly (160 hours): $8,000.00

Uber commission (monthly): -$2,240.00

Gas (monthly): -$640.00

Insurance (monthly): -$355.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $4,690.00

 

Lyft

lyft income

In addition to being able to seat four passengers, Lyft vehicles are required to pass a 19-point inspection. Checking things like foot brakes, headlights, windshield wipers and tire condition, the inspection isn’t difficult for most vehicles to pass, however, would-be drivers should consider their potential yearly earnings when agreeing to these yearly inspections.

 

Base fare: $2.25

Per minute rate: $0.27

Per mile rate: $1.35

Potential income (based on documented user testimony)

Hourly: $25.00

Daily (8 hours): $200.00

Monthly (160 hours): $4,000.00

Lyft commission (monthly): -$800.00

Lyft safety fee (monthly): -$600.00

Gas (monthly): -$480.00

Insurance (monthly): -$120.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $1,925.00

 

Lyft Plus

lyft plus

Differentiated from the standard Lyft service only by the requirement to seat six passengers, Lyft Plus is an easy choice for anyone with a larger vehicle that is already considering driving for Lyft.

 

Base fare: $3.37

Per minute rate: $0.40

Per mile rate: $2.02

Hourly: $35.00

Potential income (based on documented user testimony)

Daily (8 hours): $280.00

Monthly (160 hours): $5,600.00

Lyft commission (monthly): -$1,120.00

Lyft safety fee (monthly): -$600.00

Gas (monthly): -$480.00

Insurance (monthly): -$120.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $3,205.00

 

Sidecar

sidecar income

Requiring a 19-22 point vehicle inspection, Sidecar prides itself on its safety record. Slightly differentiated from its competition, Sidecar allows drivers to adjust a number of the variables that determine their fares. With this kind of flexibility, it’s important to know that you can customize your driving services to cater to different audiences and earn more per hour. It should also be taken into account that Sidecar has proportionately fewer fares/hour, which may results in significantly lower numbers than what is reported below.

 

Base fare: $3.00

Per minute rate: $0.23

Per mile rate: $1.13

Hourly: $20.00

Daily (8 hours): $160.00

Monthly (160 hours): $3,200

Sidecar commission (monthly): -$640.00

Gas (monthly): -$480.00

Insurance (monthly): -$120.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $1,885.00

 

Delivery

 

Just like Uber, a number of companies have leveraged the power of mobile phones to make previously unfeasible business models possible. Delivery services make use of a network of individuals willing to shop for groceries, drop off mail, deliver packages and more. Unlike Uber, however, many of these companies do not require access to an automobile. Because of this, workers for these services are able to save on monthly expenses by making their deliveries with bicycles and scooters.

 

Assumptions

 

  • Average number of deliveries: 2 per hour
  • Average distance traveled per delivery: 5 miles
  • Passenger fuel costs: $1.50 per hour
  • Scooter fuel costs: $0.50 per hour
  • Personal auto insurance: $100.00 per month
  • Scooter insurance: $14.15 per month
  • Average delivery bill: $60.
  • Average gratuity: 15%.

 

Instacart

instacart income

Requiring only that workers be 18 years old, have access to a Smartphone and are able to lift 25 pounds, Instacart is an online grocery service that promises delivery in less than two hours. For anyone who feels at home in the produce section, Instacart could be a lucrative opportunity, provided they are able to reduce shopping time without compromising the quality of their customers’ groceries.

 

Hourly: $18.00

Daily (8 hours): $144.00

Monthly (160 hours): $2,880.00

Monthly tips: $432.00

Gas (monthly): -$240.00

Insurance (monthly): -$100.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $2,897.00

 

Alternate costs for delivering via scooter instead of automobile:

 

Gas (monthly): -$80

Insurance (monthly): -$14.15

Monthly take home: $3217.85

 

DoorDash

doordash income

Offering restaurant delivery where deliveries are otherwise not possible, DoorDash requires their drivers be 18 years old, have a valid drivers license and own a car or bicycle. By cutting down on costs and delivering via bicycle, many of the monthly costs can be offset if drivers are able to deliver promptly and maximize their gratuities.

 

Hourly: $16.00

Daily (8 hours): $128.00

Monthly (160 hours): $2,560.00

Monthly tips: $384.00

Gas (monthly): -$240.00

Insurance (monthly): -$100.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $2,529.00

 

Alternate costs for delivering via scooter instead of automobile:

 

Gas (monthly): -$80

Insurance (monthly): -$14.15

Monthly take home: $2,849.85

 

 

Postmates

postmates income

With very few requirements, drivers for Postmates need only be 18 years old and own a car, bike, truck, scooter or motorcycle. The company offers a broad range of services, promising to deliver or move goods around a number of major cities in less than an hour.

 

Hourly: $20.00

Daily (8 hours): $160.00

Monthly (160 hours): $3,200.00

Monthly tips: $480.00

Gas (monthly): -$240.00

Insurance (monthly): -$100.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $3,265.00

 

Alternate costs for delivering via scooter instead of automobile:

 

Gas (monthly): -$80

Insurance (monthly): -$14.15

Monthly take home: $3,585.85

 

 

Caviar

caviar income

Distinguishing itself with a unique sales model, Caviar offers delivery from the best local restaurants for a flat fee of $9.99. As an upscale service, drivers for the company have the opportunity to deliver goods of a higher cost to a clientele that is willing to pay more. Considering this, efficient Caviar drivers can expect a substantial portion of their income to come from customer gratuities.

 

Hourly: $18.00

Daily (8 hours): $144.00

Monthly (160 hours): $2,880.00

Monthly tips: $432.00

Gas (monthly): -$240.00

Insurance (monthly): -$100.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $2,897.00

 

Alternate costs for delivering via scooter instead of automobile:

 

Gas (monthly): -$80

Insurance (monthly): -$14.15

Monthly take home: $3,217.85

 

Tasks

 

Tasksharing services allow users to outsource tasks to participating workers in their local area. Similar to delivery services, workers can often bid for, receive and complete tasks without the need for an automobile. By eliminating their need for a vehicle, workers for these services can reduce their overhead and maximize their monthly earnings. While many tasks fall under the umbrella of general labor, workers with trade skills or certifications are in high demand and can often earn substantially more based on their qualifications.

 

Assumptions

 

  • Average number of jobs: 1 per hour
  • Average distance traveled per job: 5 miles
  • Passenger fuel costs: $1 per hour
  • Scooter fuel costs: $0.33 per hour
  • Personal auto insurance: $100.00 per month
  • Scooter insurance: $14.15 per month
  • Average gratuity (where applicable): 15%

 

TaskRabbit

taskrabbit income

Requiring that their workers be 18 years old and have access to a Smartphone, TaskRabbit offers an almost infinite variety of services to users in several major cities. From raking leaves and vacuuming to running errands and performing household repairs, TaskRabbit workers — especially those with specific skills — stand to make a considerable income if they remain active and diligent.

 

Hourly: $48.00

Daily (8 hours): $384.00

Monthly (160 hours): $7,680.00

TaskRabbit commission (monthly): -$1,536.00

Gas (monthly): -$160.00

Insurance (monthly): -$100.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $5,809.00

 

Alternate costs for tasksharing via scooter instead of automobile:

 

Gas (monthly): -$52.80

Insurance (monthly): -$14.15

Monthly take home: $6,077.05

 

Homejoy

homejoy income

A new spin on an old service, Homejoy offers users the convenience of maid service with the press of a button. By mobilizing a network of workers, the company promises to cross “clean my home” off of their users’ to-do lists in less than ninety seconds. Along with the standard requirements, Homejoy performs background and reference checks on all of their workers to ensure their reliability and trustworthiness.

 

Hourly: $13.50

Daily (8 hours): $108

Monthly (160 hours): $2,160.00

Monthly tips: $324.00

Gas (monthly): -$160.00

Insurance (monthly): -$100.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $2,149.00

 

Alternate costs for tasksharing via scooter instead of automobile:

 

Gas (monthly): -$52.80

Insurance (monthly): -$14.15

Monthly take home: $2,417.05

 

Handy

handy income

Combining home cleaning and handyman services, Handy performs background checks on all of their workers, as well. Just like TaskRabbit, Handy promises higher earnings for skilled workers and, while we’ve calculated an average, workers with trade skills have reported earnings as high as $45 per hour. Furthermore, professionals with Handy who maintain a rating of 9.5 or higher are eligible for a 10% increase in their hourly earnings.

 

Hourly: $20.00

Daily (8 hours): $160

Monthly (160 hours): $3,200.00

Gas (monthly): -$160.00

Insurance (monthly): -$100.00

Supplies (monthly): $-200.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $2,665.00

 

Alternate costs for tasksharing via scooter instead of automobile:

 

Gas (monthly): -$52.80

Insurance (monthly): -$14.15

Monthly take home: $3,133.05

 

Washio

washio income

One of the more unique tasksharing services, Washio offers laundry and dry cleaning delivery services to a range of cities in the United States. Along with the typical requirements, Washio requires their delivery agents have a valid drivers license and own a vehicle. The company differentiates itself by offering their drivers a guaranteed rate of pay: $20 per hour. So, for anyone looking to ease themselves into on-demand services, Washio is a safe, comfortable place to start.

 

Hourly: $20.00

Daily (8 hours): $160

Monthly (160 hours): $3,200.00

Gas (monthly): -$160.00

Insurance (monthly): -$100.00

Vehicle maintenance (monthly): -$75.00

Monthly take home: $2,865.00

 

Conclusion

on demand income

As can be seen from the results, there are clear winners in each category. With ridesharing, you can see that Uber Black and SUV rise above the competition, offering drivers roughly 40% more per month on average. While the results may vary for individual drivers based on their experience, it’s easy to see how Uber’s premium services merit consideration if you are considering making ridesharing revenue a part of your long-term financial plan.

 

In the delivery category, despite their premium branding, Caviar fares little better than average. Postmates, in fact, displays the highest monthly earnings. Furthermore, delivery drivers with Postmates who utilize scooters, bikes or other forms of transportation can actually earn income on par with ridesharing services. If you find yourself without access to an automobile, however, the income you stand to earn from any of the major delivery services could, on average, approach the low end of the wages earned by drivers for Uber X, Lyft and Sidecar.

 

In the tasksharing category, TaskRabbit stands out as a clear winner, though it should be mentioned that skilled, professional contractors working through Handy could earn as much or more. More importantly, Handy workers have the luxury of defining their line of work and narrowing it down to cater to their skills. TaskRabbit workers, on the other hand, act as more general laborers whose tasks could fall into any number of categories. If you’re a trained professional, you will likely prefer the predictability of Handy but, for anyone simply looking to clock in and earn some money, TaskRabbit is a viable option.

 

In the end, these figures are presented to allow people who are interested in pursuing work in the on-demand industry to make informed decisions. Your skills, availability, commitment and experience will ultimately affect your earnings more than anything else. Like any industry, the on-demand industry rewards investment. The more time, money and brainpower that you invest, the higher your financial rewards will be. We encourage all curious readers to ask themselves how their participation in these on-demand industries will play into their financial future.

 

 

Sources

 

Speed limits: http://carrentalscout.com/driving-speed-limits-san-francisco

Time between fares: http://www.quora.com/How-long-does-an-average-Uber-driver-wait-between-fares

Lyft rates: https://www.lyft.com/cities/san-francisco

Uber rates: https://www.uber.com/cities/san-francisco

Sidecar rates: http://support.side.cr/customer/portal/articles/1697691-fare-rate-in-chicago

Instacart earnings: http://www.nytimes.com/2014/05/22/technology/personaltech/online-grocery-start-up-takes-page-from-sharing-services.html?_r=1

Instacart earnings: http://acolavin.blogspot.com/2013/06/instacart-lost-my-trust-with-their.html

DoorDash earnings: https://www.doordash.com/driver/apply/

DoorDash earnings: http://www.glassdoor.com/Reviews/DoorDash-Reviews-E813073.htm

Postmates earnings: https://postmates.com/apply

Caviar earnings: http://ny.eater.com/2014/2/10/6282591/inside-caviar-a-new-premium-food-delivery-service

General earnings information: http://www.peers.org/

Car mpg: https://www.fueleconomy.gov/FEG/byclass/Midsize_Cars2014.shtml

SUV mpg: http://www.fueleconomy.gov/feg/byclass/Small_SUV_4WD2014.shtml

Gas prices: http://www.sanfrangasprices.com

Uber fees: http://www.forbes.com/sites/ellenhuet/2014/09/22/uber-now-taking-its-biggest-uberx-commission-ever-25-percent/

Car insurance costs: http://www.valuepenguin.com/best-cheap-car-insurance-california#average

Lyft fees: http://blogs.wsj.com/digits/2014/08/11/lyft-reintroduces-commissions-on-rides-with-a-twist/

Sidecar fees: http://support.side.cr/customer/portal/topics/341418-how-payments-work/articles

TaskRabbit earnings: http://www.peers.org/income/taskrabbit/

TaskRabbit fees: http://en.wikipedia.org/wiki/TaskRabbit

Homejoy earnings: https://www.homejoy.com/apply

Handy earnings: http://www.peers.org/income/handy-com/

Washio earnings: http://valleywag.gawker.com/startup-brilliance-lets-call-part-time-laundry-worker-1442444213#

Uber car requirements: http://www.driveubernyc.com/cars/

Lyft car requirements: https://www.lyft.com/drivers

Sidecar requirements: http://support.side.cr/customer/portal/articles/1669396-sidecar-vehicle-inspections-

By | 2018-10-10T13:47:39+00:00 April 15th, 2015|Blog, Lifehacks|0 Comments

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