7 things I learned as a rideshare driver in 2015

For our latest post we welcome guest contributor Brett Helling to share his insights on lessons learned while rideshare driving – and what you can learn from them. Brett has been a rideshare driver since early 2014, and blogs about his experiences on the blog he runs, rideshareapps.com

It’s been almost two full years since I signed up to become a rideshare driver. I first signed up with Lyft, then took the plunge and signed up for Uber too. After a few months of driving people around, I thought I knew it all. But towards the end of 2014, the rideshare scene was drastically changing, and I had to adapt to keep up.

2015 brought its fair share of lessons, and I would like to share with you a few things I’ve learned over the past two years. Hopefully some of these suggestions help you avoid rookie mistakes and help you maximize your income too! 

7. The industry remains heavily divided about tipping

You’ve probably heard it before: one of your rideshare friends complaining about not getting tips, or rejoicing because they got a big one. Tipping is one of the most debated issues among riders and drivers, and the industry remains heavily divided on the topic.

For example, let’s look at Lyft and Uber’s tipping policies. Lyft incorporates tipping directly into the app, while Uber blatantly discourages it. Check out this quote taken directly from the Uber website:

 “You don’t need cash when you ride with Uber. Once you arrive at your destination, your fare is automatically charged to your credit card on file — there’s no need to tip.”

This is a frustrating topic, I know. But here’s the thing: drivers are already keeping 80% of their ride fares. So even though rideshare driving is technically a service industry, I have learned that rather than focus on tips, the best thing to do is maximize the rideshare experience for my passengers. Organically, tips will likely follow. 

2015 taught me…

• Expect the worst and hope for the best. Don’t expect a tip, but if you get one, awesome
• Never blatantly ask for a tip. Doing so will make riders feel uncomfortable and, more often than not, won’t result in a tip
• Be nice and easy-going and the tips will follow. By far the easiest way to increase your tips is by making the rider’s experience a pleasant one

 

6. It doesn’t always pay to chase SURGE or Prime Time

Shortly after I began driving, Uber and Lyft released what they were calling SURGE and Prime Time pricing. For those that aren’t familiar, this type of hyper-inflated pricing gets activated when passenger demand outweighs driver supply. This is a way to bring equilibrium to the market, getting more drivers on the road to meet the high demand for rides.

Many drivers go crazy over this, and will do anything they can to give a few rides that cost a little more than the normal price. In normal circumstances, this makes sense. But think about it another way: if you have most of the drivers around a particular city all rush to a SURGE or Prime Time zone, what happens? The higher pricing gets activated, drivers flock to the zone, then by the time you get a ride request the price drops back to normal because supply and demand are even. 

Apparently I am not alone in my thinking, as there are many other drivers that have the same view as me. Hyperinflated pricing seems great at first, but when you factor in the time it takes to get to these zones, the opportunity cost of the trips you may be missing out on, and the frustration of not receiving a ride request after traveling to one of these zones, it makes sense to avoid it all together and treat it as a plus when it does occur naturally. 

2015 taught me…

• Chasing SURGE and Prime Time doesn’t always guarantee higher ride fares. You may get into the higher priced zone only to have it drop back to normal right when you arrive
• I have consistently made great money depending on increased ride volume rather than looking for more expensive ones
• If a passenger complains about SURGE or Prime Time, make sure to explain that you didn’t raise the price yourself. This will help lower the risk of getting rated poorly because the passenger mistakenly thought the driver hiked the price up

5. People get drunk and hard to handle

Just when I thought I had seen it all, I see more. When people get drunk, they get disorderly. And when they get disorderly, they get shameless. Passengers have hooked up in my back seat, offered me drugs during a ride, tried to fight me for no good reason at all, and tried to bash out my back window, from the inside, with their brand new Macbook Pro.

In all those situations, I learned how to handle those passengers pretty darn quick. When these situations arise, they often arise very quickly.  There is no easy button to hit, and nobody you can call at the drop of a hat that will magically come and solve your problem for you. The key to success is to remain calm, and have a little preparation and knowledge of how to deal with these situations.

2015 taught me…

• Don’t underestimate drunk and disorderly passengers. If they seem too drunk to ride, they probably are. I once rejected a ride because the passenger seemed too drunk. Turns out the Lyft driver behind me picked him up and he hurled all over the car once they got going 
• As a driver, you have the right to cancel a trip. If you feel threatened or uncomfortable for any reason, don’t put yourself in a compromising situation
• Use the rating system after each ride. It is a way to keep good riders in good standing, and weed the bad eggs out. Don’t be afraid to give a passenger a low rating if they deserved it

 

Photo from Uber.com

4. Resist the urge to cancel a ride

This one took me a while to learn, but contrary to popular belief, waiting for slow passengers will likely benefit you in the long run. In fact, last night I was about to cancel on a passenger that kept me waiting for more than 5 minutes. I waited, and boy am I glad I did. Turns out the passenger was finishing packing his suitcase and lost his keys in the process.  The ride ended up netting me $25, plus a $10 tip for the wait. 

2015 taught me…

• Sometimes patience pays off. Riders taking a bit longer than usual are likely packing a bag, saying goodbye to a loved one, or getting their group together
• Being patient not only opens the opportunity for a good ride, but is also appreciated by the rider. More often than not, they will realize they were running behind, apologize for it, and maybe even tip you for your patience
• Put yourselves in their situation: Would you want a driver cancelling on you? I don’t think so. When in doubt, trust your instinct

 

3. The right gear makes a world of difference while driving

I learned this one the hard way. I have had multiple occasions where having the right gear would have saved me when I was out and about on the road. Having an extra charger can keep your phone alive, the proper phone mount can help you avoid accidents, and a barf bag can save you hours of cleanup time if a passenger happens to need to hurl. 

A few weeks after driving, Lyft was kind enough to give me a welcome kit with all of these extra things as an added incentive to get me on the road. While they don’t do this anymore for cost reasons, drivers can still stockpile gear on their own for very cheap. 

2015 taught me…

• The Kenu Airframe is one of the best phone mounts. It will keep your phone cool and help avoid distractions when driving
• Carrying extra phone chargers can prevent your phone, as well as your passenger’s phones from dying during a trip
• Having a few barf bags in your car can save you countless hours of cleanup and frustration if a passenger happens to need to hurl

2. You can make great money driving for Uber and Lyft at the same time

If you drive for one rideshare service, why not increase your earnings by signing up to drive for both, then driving for Uber and Lyft at the same time? Driving for both services is a way of diversifying your income, eventually leading to increased ride fares. More trips = more money, right?

I made the plunge two years ago, and now whenever I drive, I almost always run both apps at the same time. There is rarely a night where both aren’t busy. If Uber is slow, but Lyft is busy, I get a lot of Lyft requests, and vice versa. Diversifying rideshare employers will help you stay busy and maximize your drive time behind the wheel. 

2015 taught me…

• Driving for Uber and Lyft at the same time leads to more rides, which results in higher earnings on average
• Keep Uber open in the foreground, and Lyft in the background. If you don’t, Uber will kick you off
• Keeping a charger handy keeps you on the road, because running both apps sucks your battery dry

1. Tracking driving expenses makes taxes a WHOLE lot easier

I wish I knew what I know now when I went to file my taxes during the first year I drove. When I first started driving, I was only concerned about getting people around town. As the year progressed, however, I began thinking more strategically and worrying more about how much money I was making when I was all said and done. 

Oftentimes, rideshare drivers will overlook expenses such as gas, insurance, depreciation, and commission. Since drivers can write off many of these expenses at the end of the year, it is important to track these expenses to maximize these deductions. Once I realized the importance of deductions, I began tracking them on a spreadsheet I created. 

The first year alone, I saved a few hundred dollars on my taxes. After ever trip, I would methodically track my odometer, calculate my gas expense, then go home and input that data into my spreadsheet. But there is an easier way.

Check out SherpaShare if you haven’t already. Used by tens of thousands of drivers a month, SherpaShare automatically tracks your mileage and expenses as you go. The platform is the best in the industry, in my opinion, and has been featured in the New York Times, Geekwire, and countless other sites. Check it out and save yourself some time!

2015 taught me…

• Using a platform like SherpaShare to track your expenses can drastically reduce your tax bill at the end of the year
• Car washes, gas, mileage, depreciation, and maintenance are just a few of the expenses that are commonly overlooked
• Tracking expenses allows drivers to tinker with driving strategies, helping maximize their time behind the wheel

Have a safe & happy New Year!