5 Risks of Ridesharing

The other day I published the article Making Money With Uber. There are several different ridesharing companies out there, but they all have very similar risks with taking part in this relatively new way of making extra money.

As always with any extra money idea, you should always look into all of the positives and negatives and do your research to see if the money making method is for you.

1. Car insurance problems.

Car insurance has been a big problem with ridesharing lately. You always need to check with your current car insurance company before you decide to sign up for Uber to make sure that they will continue to insure you.

If you wait until after something happens (such as being in an Uber accident), you might find out that your insurance company will not cover you under commercial-related activities, which may mean that getting into an accident while driving for Uber would be out of your pocket actually.

5 Risks of Ridesharing

2. There are a lot of expenses.

With ridesharing, there are a ton of expenses that you will have to fork out money for. It is definitely not a cheap side hustle to start like blogging is. These expenses can significantly cut into your profits and may even make a ridesharing side hustle not possible for you.

Some of the expenses include:

  • Your actual car. Do you have a car payment?
  • Property taxes on your car.
  • Gas.
  • Maintenance such as oil changes, new tires, and tire rotations.
  • Parking fees.
  • Tolls.
  • And more!

3. There’s a rating system.

If you’ve never been in sales before then you might not know this. If there is a rating scale, then unless you get the very top number, then you fail. So, if the scale is from 1 to 5 and you get a 4, then you fail. This is how it works with ridesharing companies as well.

So, if someone gives you a bad rating, you can potentially be kicked out of the ridesharing program completely.

4. You’re going to put on a lot of miles on your car.

Since you will basically be a taxi driver, your whole job will consist of you driving others around in your car. This means that you will probably be driving 40 plus hours in your car, and those are all miles that will be added to your car.

5. You’re on call.

Another negative is that you will basically be on call all the time because for the most part you will never for sure know if you will have a full day of ridesharing work to do.

What other risks of ridesharing do you think there are?

Would you ever use this method to make money?

 

Image via Flickr by bootleggersson

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Comments

  1. Hi GMM,
    After reading your article, i dont think that i would use ridesharing for money. Risky things are better to be avoided.

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