After the tumultuous time period that was 2020 through 2022, is ridesharing still a good way to make side cash? Like anything, there are pros and cons to both sides of the story.
We’ll discuss both the pros and cons of continuing to work as a rideshare driver, as well as insurance concerns in the industry and the best rideshare insurance companies.
Reasons Why You Should Keep Working as a Rideshare Driver
Yes, rideshare driving is still a great way to make extra money, especially now that people feel comfortable traveling again. Both Uber and Lyft experienced considerable increases in sales this year (80% and 49% as of April 2022, respectively).
Although the rideshare industry has been hit hard by the pandemic, driving for Uber or Lyft can still be a great way to earn some extra cash.
But with more people growing accustomed to the work-from-home lifestyle, there has been a considerable surge in demand for food delivery and other essential services. This has created new opportunities for rideshare drivers who are willing to dive into food delivery as well as ridesharing.
While it may not be as profitable as it was before, rideshare driving is still a great way to make some extra money.
Reasons Why You May Not Want to Keep Working as a Rideshare Driver
While the pandemic caused a giant decrease in ridership and made it more difficult for drivers to make money, that trend is slowly fading out of sight thanks to the tremendous economic growth and notable return to normalcy the economy experienced in 2021.
That said, unemployment fell rapidly in 2022, but recession concerns and runaway inflation are negatively affecting consumer spending. Discretionary spending is falling thanks to burning wallets and struggles to keep up with monthly bills.
It’s important to remember that driving with Uber and Lyft will not give you 100% profit: You’ll still need to pay for gas and keep up with vehicle maintenance. And depending on how far you usually travel, you may want to look into extra insurance coverage in case something goes wrong on the road.
These factors and then some may make it more difficult for newer drivers to rake in considerable income.
Insurance Concerns with Rideshare Drivers
The insurance implications of ridesharing grew more complicated in light of the pandemic. Ridesharing companies are now required to carry more insurance coverage, and there is greater scrutiny on whether or not drivers are properly insured. This has led to some companies dropping drivers who don’t meet the new insurance requirements.
There have also been cases of riders suing Uber or Lyft after being injured in an accident while in rideshare. In these cases, the ridesharing company is typically named as a defendant along with the driver.
So, if you are considering driving for a ridesharing company, check with your insurance company to make sure you are fully covered. If you’re looking for a company with great rideshare policies, you can check out well-known companies like Geico or Progressive, or speak with a local insurance agent.
Rideshare Practicality Depends on Your Lifestyle
Rideshare driving can still be a good option, even with the recent changes in the industry. It all depends on your comfort level with the risks involved and whether or not you can find enough passengers.
The key is to be aware of the potential dangers and take steps to minimize your exposure to them. For example, driving during peak hours when there are more passengers available can help you earn more money and minimize your chances of getting stranded.
Making sure you’re carrying enough insurance so you’re covered in the event of an unpredictable emergency is imperative as well.
Other Jobs to Help You Make Some Side Cash
If you’re looking for other creative ways to make money online or in a similar industry to rideshare, here are a few examples that can be a great way to earn some extra income.
#1 – Delivering Food or Groceries for a Delivery Service
If you enjoy spending time on the open road and meeting new people, a job as a food delivery driver might be a good fit for you. As a delivery driver, you would be responsible for picking up and dropping off orders from local businesses.
In some cases, you might also be responsible for handling payments and customer service.
Depending on the company you work for, you might be expected to use your own vehicle or one provided by the company.
Most delivery drivers work part-time or on a contract basis, which can offer a flexible schedule. If you’re looking for a job that gets you out of the house and interacting with the community, delivering food could be a good option.
#2 – Doing Odd Jobs Through TaskRabbit or Upwork
With work-from-home culture taking the nation by storm, more people are making side cash through odd jobs with online platforms like TaskRabbit or Upwork.
This is a great way to make some extra money on the side, especially if you’re looking to build an emergency fund quickly, or even to replace a full-time income. The best part is that you can work as much or as little as you want, and you can often choose your own hours.
#3 – Renting Out a Spare Room Airbnb or VRBO
For many people, the thought of renting out their spare room to strangers is a bit daunting. After all, you’re inviting someone into your home and giving them access to your personal space.
However, there are many benefits to renting out your spare room on a short-term rental site like Airbnb. First of all, it’s a great way to earn some extra income.
If you live in a popular tourist destination or in a city with a high demand for short-term rentals, you can easily make hundreds of dollars (or more) per month by renting out your spare room. Additionally, it’s a great way to meet new people from all over the world.
As a host, you’ll have the opportunity to interact with your guests and learn about their culture and customs. And finally, it’s a great way to offset the costs of owning a home.
Whether you’re looking to earn some extra income or simply want to offset the costs of owning a home, renting out your spare room on Airbnb or another short-term rental site is definitely worth considering.
Is working as a rideshare driver still worth it?
There’s no easy answer when it comes to whether or not rideshare driving is still a good way to make money. It depends on your comfort level with the risks involved and how easy it is for you to find passengers. If you’re willing to take the risk and you can find enough passengers, then rideshare driving can still be a great option.
However, if you’re not comfortable with the risks or you can’t find enough passengers, there are other options available, like delivering food or groceries, doing odd jobs online, or renting out your spare room. Whichever option you choose, make sure that you research it thoroughly so that you know what to expect.
Luke Williams writes and researches for the insurance comparison site, Clearsurance.com. His passions include insurance and helping others create side income.