Whether you’re trying to supplement your income, make some money as a student, or want to do this as a full-time job, working for ridesharing companies has its fair share of advantages. They’re often easy to start working with, allow full-time drivers to earn a living wage, and are growing in popularity around the country. But they do have their disadvantages as well that should not be overlooked. Let’s take a look at some of the pros and cons of working for a ridesharing service.
Pro – Flexible Schedule
One of the best things about working for a ride-sharing service is the flexibility and freedom they offer. With these services, you can decide to punch the clock whenever you want and work the number of hours you please. No need to set schedules, or fit your work hours around activities. Not many jobs can give you this level of liberty.
Con – You Might Need a New Car
If you had an old banger and were thinking of using it to Uber, you can forget it. The condition of their drivers’ vehicles is still part of Uber’s brand, and you will need a car no older than 5 years if you want to work for them. This could be a problem if you’re already strapped for cash, so think about that first. They have a set list of acceptable vehicles as well, so not all new vehicles will do. Prepare to either have to buy an MPV or saloon, as most of their eligible vehicles fall under that category.
Pro – You Can Work for Multiple Services at Once
Another great thing about working as a rideshare driver is that you’ll be able to work for multiple services at the same time. You could log on to both Uber and Lyft and take the rides that are the most beneficial to you. In addition, you could work for other services like Just Eat or Deliveroo, which could be great sources of additional income. You won’t have to worry about sitting idle and waiting for jobs, and you’ll be able to choose jobs that are better for you depending on where you are and how much you stand to make.
Cons – Hidden Costs
While the per hour rates may seem interesting at first glance, a lot of things could end up eating into your hourly margins. For one, you can expect to pay much more for insurance. This is because you’ll have to get business insurance, rideshare insurance, or Uber taxi insurance on your car in order to work legally.
The difference between personal coverage and business coverage is very significant. It is not uncommon for people who paid around £180 on personal coverage to end up having to pay £1800+ for business insurance, so you’ll have to be prepared for that. However, this is to be expected considering that it comes with public liability insurance, which is essential when driving strangers around.
Thankfully, there are many services that will allow you to compare different car insurance providers, like CompareNI.com. They are not affiliated with any insurance company or broker, so you’ll know you’ll get fair, unbiased quotes. You’ll be able to browse tons of quotes in seconds and see which ones are the best for you all in one place.
Another thing you’ll have to consider is that you’ll also need a special license to start working. To work as an Uber or Lyft, you will need a Private Hire Vehicle, or PHV, license in order to operate lawfully. The cost will depend on where you live, and you’ll also have to pay £95 for a medical.
Pros – Conditions are Getting Better
One of the biggest issues people working for ridesharing companies had was the issue of maternity and sick leaves. Worker rights were always a problem with ridesharing services and the government pledged to address the difficulties faced by people working in the gig economy. Probably in order to save face, Uber recently announced that they would offer some added protection for their drivers, including maternity leave provisions and sick pay.
However, note that this may not be applicable to everyone. In order to get those benefits, drivers will need to have completed at least 150 rides in their last two months. There will also be a cap on the amount of sick or maternity leave you can claim. Maternity pay-outs are said to be set at £1000, and £1125 for sick pay after a week.
Whatever your goals are, it’s very important that you do your research before you enroll with any ridesharing service and know how much of your own money you’ll have to invest. Budget properly, and assess whether this is a great deal for you considering all the added costs associated with the job.