The Power of Ride Sharing: Owning Your Cab

The Power of Ride Sharing: Owning Your Cab Philippines

Thanks to the ridiculous speed of technology, businesses and industries are now being shaken by new-age approaches to giving people what they need. You want groceries? Order them online! You need a passport? Appointments can be made over the internet! You need a ride? Call for one on your smartphone! Here’s where ride sharing comes into play.

Today, ride sharing has become one of the most lucrative business models in the country. Who can blame the public? When the average taxi driver demands 200 pesos to take you from one street to the next within the same city, there’s no surprise an app that charges you the same amount for city-to-city travel is taking the metro by storm.

You’ve got Uber. You’ve got Grab. There are also talks about Lyft coming into the Philippine scene! With all that taking place, it isn’t just the commuting public that has reason to smile. Even vehicle owners and potential car buyers can snag a decent living with the help of these services.

Ride Sharing: How Does it Work?

Well, the premise behind ride sharing is really simple. Applications such as Uber and Lyft connect people that need rides to the people that are offering rides. It’s how these applications get that done that’s complicated. They use mathematical equations known as algorithms to help make these connections.

Let’s say Michael needed to get to Makati City Hall right from a birthday party he just attended in Quezon City. All that Michael needs to do is to book a ride. Once he does that, the application checks in with the cloud servers with the service to use the algorithms.

From there, the service alerts drivers in the nearby area in Quezon City about Michael and his need to get to the City Hall. Now let’s say Bryan, who is an Uber driver, picks up one of these offers and sees Michael needs to get somewhere. He knows how to get to City Hall and accepts the job offer. He picks up Michael and drives him to Makati all the way from Quezon City.

Even before anyone gets in the car, the algorithms have also computed how much Michael would have to pay Bryan to get there! No need for meters or “sideline negotiations”! Michael also doesn’t need to stand on the side of the road for 45 minutes to beg incoming taxi drivers to take him where he wants to go! Everything’s been agreed on as soon as Michael and Bryan give their OK signals.

Ride Sharing: Is It Really That Simple?

Well, these apps take a small share of the income that the drivers make, but that pretty much sums everything up. Who would have thought such a simple business model could shake the industry so much? It’s been so successful that regular taxi drivers can do nothing but complain about it!

On top of making lives easier for the commuting public, these services also do the environment and the oil and gas industry a big favor. Just take a look at things from a larger perspective.

When people can now get rides from vehicle owners that want to use their personal cars for business, you won’t have people buying new cars anymore. That’s lesser wheels on the road. With fewer cars on the road, you know that means less traffic during the rush hours.

On top of that, because more people are getting into more cars, unused car seats are bearing some of the heavy burdens that the commuting public carry with them. That’s making this more efficient.

Finally, because you have less cars on the road because everyone is sharing their rides, fuel demands go down. Going to your supply-and-demand rule, that’s supposed to make prices drop or control them at a certain line.

Ride Sharing: A Driving Perspective

Again, it’s not just the commuting public that’s happy with these apps. Even drivers are happy to be part of something this special. There’s a new trend in the market now wherein people are buying cars specifically just to become Uber drivers. Yes, the business is that good that it provides for your monthly car payments and your groceries at the same time!

Becoming part of them is just as easy. All you need is a vehicle with which to drive. It’s got to have complete requirements. That means a full license plate as well as documentation. It’s got to be a vehicle recognized by the government.

On top of that, you’re going to need to upgrade your driver’s license to a professional level, since you’ll be ferrying people over concrete rivers. Apart from that, a few clicks and submissions should see you as a registered driver in a matter of weeks!

And the pay isn’t that bad either. There have been reports about ex-tax drivers that are now Uber and Grab drivers that are making twice if not thrice of their usual daily incomes if they work a full shift. This is because there are no “boundaries” that these drivers have to pay anyone. They keep what they earn and their earnings are monitored by the service as well. No one gets a hand above anyone else!

In addition to that, you get to choose when you drive. You want to get in on the morning rush? That’s fine! Just be prepared for traffic. You want to get dibs on the late-night after-party commuters? Go right on ahead. You want all of them? That’s fine too!

Ride Sharing: Drawbacks?

Of course, not everything is rainbows and butterflies. Because of the high demand for these services, competition is getting rather stiff. This is especially true if you have plans on becoming a driver for these companies.

Take note that you’ll be using your vehicle non-stop. That’s got to take a toll on your baby. Expect to invest a little more in auto management if you want to stay relevant in this line of work.

You also have to worry about insurance. If you’re already insured and you suddenly jump into ride-sharing, there’s a good chance your insurance provider isn’t going to like that because your risk factors suddenly shift for the worse.

Then there’s also the problem with career drivers. It’s almost impossible for you to make a career out of being a driver, unless you start hiring drivers to work for you. The chances of that happening are really slim. Yeah, you’re stuck with a good source of income that covers all your ends, but when you start wanting upward movement in the driving industry, there’s very little room in which to do that.

Ride Sharing: Is it For You?

Most certainly! The businesses are there, and they’ve made very clear statements that they’re here to stay. It’s more of personal question for yourself and your lifestyle if you want to invest in a car and go full-driver. People are happy with it right now. If you’re ready to devote yourself to driving all day and meeting interesting (and not-so-interesting) people as you drive, then take the wheel and enter the world of Ride Sharing!

If, on the other hand, you’re happy commuting, don’t fret. These businesses are in for the long run and are not going anywhere, unless something new comes along the ways and shakes everything up once again.

Check out our Muscle Money article for tips on how to maximise your income