This Alternative Income Idea Could Pay You an Extra $100/Day

With growing metropolitan areas across the world, rising traffic congestion has become an inescapable reality for all of us.

Everyone hates traffic congestion, and it just keeps getting worse.

Ride-hailing apps not only makes it cheaper and more convenient for the rider – but it allows ordinary people to have added income by driving… and this is why ride-hailing services have started to become popular in the past few years.

What is ride-hailing anyway?

Ride-hailing is the transportation from an unlicensed taxi service, such as Uber or Lyft. This is also called ride-sharing service at times, though ride-sharing is mostly applied when referring to carpool services.

Popular apps like Uber and Lyft enable a customer to hire a driver to take them exactly where they need to go just by using their app.

Source: Uber

Why is ride-hailing so popular?

  • Drivers are able to take advantage of HOV lanes, designated for vehicles with a minimum number of people, usually two or three
  • Riders are able to take advantage of cleaner, newer vehicles that are accessible with a touch of a button
  • Rates are cheaper, as taxi cab drivers say that these apps are able to undercut their fees by up to 50%
  • The convenience of paying for the fees, including the trip and the gratuities, are embedded in the app fees which means riders do not deal with rude drivers who demand cash to circumvent credit card charges
  • Better drivers because of the app enabling riders to rate the service from being pleasant, safe, prompt, and clean. When a driver fails below the standard set by the ride-hailing services, the driver gets deactivated
  • The drivers are able to rate the passengers too and this protects future drivers from dealing with rude and aggressive passengers
  • Best one of them all: EXTRA INCOME for people that have the time to drive a couple of people around on their off days

How do you use a ride-hailing app?

If you’re not familiar with how ride-hailing works, you’re not alone. There may be millions of users worldwide using it but there are some who haven’t used it at all and if you’re one of those, see below on the usual Uber process to give you an idea on how it works:

Source: Uber

How to get a ride via Uber

  1. Install the Uber app on your smartphone and create an online Uber account. Sometimes new users are offered special incentives. You will be asked for your credit card and this will be attached to your account, so you never need to handle any cash.
  2. When you need a ride, open the app to tell Uber your pickup location. Your phone GPS can help you with this but at the same time you can pinpoint your own location.
  3. Uber will give an update or text you to confirm how many minutes you will have to wait for your Uber pickup. Rides are commonly 3 to 10 minutes away in major centers.
  4. The Uber app will then give an update or text you when the ride has arrived. The Uber app will also show you details of the driver, his/her name and photo, and the type of car he/she drives.
  5. Take the ride!
  6. Payment is handled invisibly, with no tip required. You just step out of the car at the end and thank the driver.
  7. After your ride, you can rate the driver on a scale of 1 to 5 (politeness, safety, cleanliness). Similarly, the driver rates you from 1 to 5 (politeness). On the driver’s end, he/she can also rate you.

And that’s it. The Uber experience is designed to be very simple and convenient, but with great features such as tracking and customer feedback.

From a driver’s point of view – the flexibility and the extra cash are great reasons to get on the ride-hailing bandwagon.

Oftentimes, a ride-hailing driver has another job or just drives for a few hours each week for extra money and YOU can take advantage of it too – whether you’re an IT manager, a student, a homemaker or a retiree.

Think about it. Driving for some extra cash? Sounds like a good deal.

There are so many ride-hailing apps available to consumers, but for more information on the two most popular ride-hailing apps Uber and Lyft, see below.

Two Popular Ride-hailing Apps For Some Extra Cash: Uber and Lyft

It’s no surprise that a lot of people are driving an Uber of Lyft after work to make some extra cash on the side. Some drivers are able to even make a full-time income from just using Uber and Lyft.

But the burning question drivers have is: which one will actually make you the most money?

Check out the table below for comparison:

Uber Lyft
Bonuses Lucrative signup bonuses of up to $500 if you complete 75 rides in 30 days Some drivers report bonuses anywhere from $500 to $5000 for Lyft
Hourly Rate A recent survey of about over a thousand drivers revealed that Lyft drivers averaged around $17.50 per hour, close to $2 more per hour than Uber drivers. Note that earnings vary per state, as a sample, maximum hourly rate of $35 are available in cities like New York and Los Angeles
Tipping Available Available
Vehicle Requirements 2002 model or newer (for most cities) 2006 model or newer
Toll Fees Drivers incur the toll fees but passengers are added a surcharge to cover the fee

If you work in Metropolitan areas, it’s a “no-brainer” — you can easily make at least an additional $100 a day driving people around during your off hours or on weekends. There’s no additional investment necessary as you only need to register your vehicle. It’s that simple.

Source: Uber

What do you need to be an Uber driver?

To become an Uber driver you need to be 21 years or older (23 depending on your city). The intended driver is required to be on the insurance for the vehicle used. Minimum of 3 years driving experience is mandatory and your vehicle must be fit to pass an inspection from Uber.

UberX* vehicle requirements are:

  • 4-door sedan, must seat 4 or more adult passengers excluding driver.
  • Year 2002 or newer.
  • In-state plates.
  • No marked, taxi, or salvaged vehicles.
  • Pass Uber vehicle inspection.
  • The car must be currently registered, but your name does not have to be on the registration.

* UberX is the most popular private car service that Uber has to offer. It’s usually the low-cost option for riders – allowing them to quickly arrive at their destination without breaking the bank.

What do you need to be a Lyft driver?

To become a Lyft driver you must be at least 21 years old with an active U.S. driver license for at least one year to apply (you can create a passenger account at 18). You must be licensed to drive for at least a year before applying. Potential drivers must pass a driving record check. Lyft reviews the results of these checks and disqualifies applicants who don’t meet the standards of both Lyft and local regulations.

Lyft requirements are:

  • 4-door car that is year 2006 or newer. Varies in many cities.
  • See Lyft requirements page for the full list of vehicle model year requirements. Scroll down to see a list of cities and states.
  • Must be a 4-door car, truck, minivan, or SUV
  • Must have personal insurance, at least the state minimum
  • Manual (standard) transmission is OK
  • No major cosmetic damage
  • Must pass a vehicle inspection
  • Driver must pass a background check and driving record check
  • Driver must be listed on vehicle’s insurance policy

Both Uber and Lyft require the same documents when you want to sign up to become a driver though some cities may require to have additional in-state documents. See below for requirements in applying to become an Uber driver or a Lyft driver:

  • A valid U.S. driver’s license
  • Proof of vehicle registration
  • Proof of vehicle insurance

There is only one way to find out if ride hailing is worth it for you. Try it.

On some occasions, a driver is able to make a full-time income that is enough to support a household driving for Uber or Lyft alone. But even if you don’t have that much time on your hands – a little extra driving after work hours will get you extra money that may help pay a few bills.

A perfect side gig don’t you think?

— Chie Yu