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Private Driver ; Cash Rides

5K views 56 replies 28 participants last post by  oldfart 
#1 ·
im not sure where this post belongs Advice, Pay, Insurance, my own city forum, or someplace else. I chose advice because at the end, that’s what I’m going to do.... offer some advice

I’ve been doing this for a year and more than a few times I’ve had passengers ask if I would do a private cash ride. My answer has always been no, because of the insurance issue. And I’ve met a number of drivers that have built a sizable clientele of private ride customers. For some of these guys it’s not unusual for them to have 3 or 4 rides scheduled in a day. That’s as much as $200 to $300 without ever turning in the app. With one exception none of these guys have the permits required in our County and none of them (except the guy with a permit) has a rideshare rider on their insurance policy, much less commercial insurance

Over the last year I’ve become more than a little upset at the amount uber and lyft take from the fare and more and more envious of the money the drivers i met are making with their privat clientel

So I started talking to my Uber/lyft passengers and asking questions. “Would you be open to a private driver” would you like to know who is picking you up and with what car, Would you be willing to schedule a ride in advance to guarantee the car and driver. How much would you be willing to pay? Uber x rates? XL? Select? Or more?

What I found is that a lot of folks already have a guy they call for airport runs and those that don’t are wide open to the idea. And they don’t seem to be worried about insurance

So what does this mean for Uber and Lyft? My thought is that if local government and the airport aughorities don’t enforce their rules we Uber and Lyft drivers will see less and less airport and other high paying rides. Every frequent flyer will have their own personal driver to call

So what’s a guy to do? I just got my commercial insurance in place and I have the application for a vehicle for hire permit on my desk. I hope to be “legal” next month

So here’s my advice. If you want to be serious about this business you have to build a clientele of private customers. And to do it right you need the commercial insurance and permits
 
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#49 ·
Old Fart...I've been following your threads and comments for quite some time. You seem to have a good handle on this business and your postings have good input/advice. It sounds like you've figured out how to be profitable in what sounds like a tough market. Kudos! I don't doubt you'll be successful in securing a good many privates and increasing your income. I wish you big success!

I'm not trying to hijack your thread, so if you feel I am, I will remove this post. Your post fit pertinent to me as I've been wanting to take the next step...and for me...that included getting Commercial Insurance so I can take privates (Black car/suv service). I haven't been doing this long, but from the get-go...had several pax ask if they could request me and/or if I had a card. Like you, I always said they needed to go through the app, that I didn't do off-app rides (at that point).

I have a Tesla Model S and started off doing X to learn the ropes but now pretty much only do Select. ( We also have a '12 M-B ML350, which I drive for Uber quite a bit to "save" the Tesla. Fortunately, Select is decent in Dallas. My
neighborhood is smack dab in what I have found to be the best area for Select/Black. I decided pretty quickly, I want to do privates. Consequently, I did a lot of research about the feasibility. I don't expect to get rich, but I do feel like the likelihood of being able to earn a respectable living is quite good. I'm retired, so don't need a whole lot (that helps). Since mid-December I've been going through all the hoops (which is a lot) to set up a business and get all the permits so I can operate a For Hire business. I purchased a 2016 Escalade ESV (good price), set up an LLC, got my for hire driver's permit, Commercial Insurance (ugh! $7400 for both vehicles and 2 drivers with clean records). Set up a Square reader, Venmo, PayPal business, Zelle, commercial bank account, etc. Will be meeting with someone to design my logo/identity later this week so I can get cards made. Probably a website in the very near term (prolly will use Limo Anywhere). Got both vehicles inspected, set up a Fleet account with Uber (went to Hub). All I need now is the Dallas TFH permit for each vehicle...the Tesla will be good to go Wed, so I can turn on black on the Uber app. The Escalade may take a bit more time if Uber insists I have permanent plates (still have temp plates) before it's approved to go on the app. It's been a lot of effort, but feel it will be worth it. Worst case scenario, I can always re-sell the Escalade and not feel too bad since I didn't buy a new one.

In Dallas, the Uber black car/suv requirements changed on Jan 1. Fewer vehicles qualify now and they can't be older than 5 yrs old. Many drivers will be off the app as of April 1 (unless they buy a different, qualified vehicle). That date is for the drivers who were already driving Black/Black SUV at the time of the change - they've been given a little extra time to comply with the new requirements, or else they'll be deactivated from driving Uber Black/Black SUV. The rep at the Hub told me all of this. There are too many crappy cars and there have been a lot of complaints from pax as well as other (professional) drivers, thus the stricter changes. I took a black ride a month ago and the vehicle had a lot of body damage, cloth seats and annoying rattles...I couldn't believe it qualified for Uber Black. These changes will work in my favor as there will be fewer black Uber drivers on the road in Dallas.

All of this has taken some $$ and some legwork. I'm quite lucky to be able to float this until I build a good business. I know it's going to take some work, but am not afraid of that. I feel I have what it takes to build a good client base...contacts as well as the wherewithal to do the marketing and business-building part.

I expect to mostly be taking Uber pings (and to a lesser extent, Lyft) while I grow this business and plan on a good 2 years to get to the point I no longer depend on the app for leads/clients and can hopefully step away from U/L.

I've learned a lot here...mostly as a lurker. Still have a ton to learn. I definitely think getting commercial insurance is a wise decision for a multitude of reasons. Not to mention, doing so gives a driver a bit more legitimacy and may even be an indicator of the seriousness of a drivers commitment to growing his/her business. Of course, the high cost of Comm'l Insurance is likely the deal killer for many. Just my opinion...I'm quite sure there are stories of madly successful drivers who do it all under the radar...that's not my style though.
 
#50 ·
Like you I'm "retired" if you can call working 70 hours a week between driving and setting up the business, retired.

I'm glad you posted this. It lets me know I'm not the only one that sees a business here, not just a side hustle
We seeme to be in the same track... you are ahead of me in the process. I'm talking to limo anywhere and I want to talk to Uber about a fleet account, (but the visiting the closest hub is an all day commitment.) my next step is getting my car inspected (it's a permit requirement) and getting the permit

Thanks
 
#52 ·
im not sure where this post belongs Advice, Pay, Insurance, my own city forum, or someplace else. I chose advice because at the end, that's what I'm going to do.... offer some advice

I've been doing this for a year and more than a few times I've had passengers ask if I would do a private cash ride. My answer has always been no, because of the insurance issue. And I've met a number of drivers that have built a sizable clientele of private ride customers. For some of these guys it's not unusual for them to have 3 or 4 rides scheduled in a day. That's as much as $200 to $300 without ever turning in the app. With one exception none of these guys have the permits required in our County and none of them (except the guy with a permit) has a rideshare rider on their insurance policy, much less commercial insurance

Over the last year I've become more than a little upset at the amount uber and lyft take from the fare and more and more envious of the money the drivers i met are making with their privat clientel

So I started talking to my Uber/lyft passengers and asking questions. "Would you be open to a private driver" would you like to know who is picking you up and with what car, Would you be willing to schedule a ride in advance to guarantee the car and driver. How much would you be willing to pay? Uber x rates? XL? Select? Or more?

What I found is that a lot of folks already have a guy they call for airport runs and those that don't are wide open to the idea. And they don't seem to be worried about insurance

So what does this mean for Uber and Lyft? My thought is that if local government and the airport aughorities don't enforce their rules we Uber and Lyft drivers will see less and less airport and other high paying rides. Every frequent flyer will have their own personal driver to call

So what's a guy to do? I just got my commercial insurance in place and I have the application for a vehicle for hire permit on my desk. I hope to be "legal" next month

So here's my advice. If you want to be serious about this business you have to build a clientele of private customers. And to do it right you need the commercial insurance and permits
Good Luck you sound someone who will be very successful at this.
 
#53 ·
im not sure where this post belongs Advice, Pay, Insurance, my own city forum, or someplace else. I chose advice because at the end, that's what I'm going to do.... offer some advice

I've been doing this for a year and more than a few times I've had passengers ask if I would do a private cash ride. My answer has always been no, because of the insurance issue. And I've met a number of drivers that have built a sizable clientele of private ride customers. For some of these guys it's not unusual for them to have 3 or 4 rides scheduled in a day. That's as much as $200 to $300 without ever turning in the app. With one exception none of these guys have the permits required in our County and none of them (except the guy with a permit) has a rideshare rider on their insurance policy, much less commercial insurance

Over the last year I've become more than a little upset at the amount uber and lyft take from the fare and more and more envious of the money the drivers i met are making with their privat clientel

So I started talking to my Uber/lyft passengers and asking questions. "Would you be open to a private driver" would you like to know who is picking you up and with what car, Would you be willing to schedule a ride in advance to guarantee the car and driver. How much would you be willing to pay? Uber x rates? XL? Select? Or more?

What I found is that a lot of folks already have a guy they call for airport runs and those that don't are wide open to the idea. And they don't seem to be worried about insurance

So what does this mean for Uber and Lyft? My thought is that if local government and the airport aughorities don't enforce their rules we Uber and Lyft drivers will see less and less airport and other high paying rides. Every frequent flyer will have their own personal driver to call

So what's a guy to do? I just got my commercial insurance in place and I have the application for a vehicle for hire permit on my desk. I hope to be "legal" next month

So here's my advice. If you want to be serious about this business you have to build a clientele of private customers. And to do it right you need the commercial insurance and permits
In New York, which is probably the most competitive market in the country, drivers began to see this pattern happen a lot with Pax! Especially because fares are so high for Pax and they look for ways to save. Commissions with Uber and Lyft are equally as high (sometimes 35%), so the temptation of taking cash passengers is always there. A new app launched recently called inDriver, that allowed Pax to pay with cash and offer the price for the fare. If we don't like the price we can negotiate back with the passenger. This worked really well while I was using the app. Best of all the company is not charging any commission for the first 6 months. I was making bank! The app recently turned off due to some regulation issues here, but the company says they will be back on soon. Looking forward to it. Anyway, as much as I love Lyft (not so much Uber nowa days), inDriver really helped to curb the money we were losing from Pax that wanted to pay cash or save money on rides. If the inDriver app is in your area, I highly recommend to use it. Especially in instances like these!
Safe driving;)
 
#54 ·
I've been doing this for a year and more than a few times I've had passengers ask if I would do a private cash ride. My answer has always been no, because of the insurance issue. And I've met a number of drivers that have built a sizable clientele of private ride customers. For some of these guys it's not unusual for them to have 3 or 4 rides scheduled in a day. That's as much as $200 to $300 without ever turning in the app. With one exception none of these guys have the permits required in our County and none of them (except the guy with a permit) has a rideshare rider on their insurance policy, much less commercial insurance
I am assuming that you already know this, but time is money. Charge them appropriately for your time (READ: more than what they pay to Uber or Lyft for the ride). Keep in mind that you must knock off early in order to be to time for the pick-up. The destination filters are useless. They will make you late. Destination filters are good for when you are ready to go home. No, you must log out early and proceed to the address. That is time in which you could be running trips. Make them pay for that. We have a capitalistic economic system. The customer pays the cost to have delivered the level of service that he desires.

Understand that for the person who wants this type of service, reliability is the number one concern. Price is tertiary, if even that high. You know where he is. Perhaps you actually know where you are going. You keep a decent car. You are a good driver. More than one TNC driver is failing in at least one of the foregoing. The customer who broaches this to you likes your service. Make sure, in a courteous, professional and businesslike manner, that he understands that this level of service costs money to deliver and that he will have to pay the cost of it.

What I found is that a lot of folks already have a guy they call for airport runs and those that don't are wide open to the idea.
..........because they want a reliable driver who renders good service...........things at which your average TNC driver fails, at different levels,.........

they don't seem to be worried about insurance
......because they have not been injured or suffered property damage or other loss in a collision Y-E-T.........

I just got my commercial insurance in place and I have the application for a vehicle for hire permit on my desk. I hope to be "legal" next month. If you want to be serious about this business you have to build a clientele of private customers. And to do it right you need the commercial insurance and permits
This is the smart way to do it. If anything goes wrong, you are covered. Just remember to charge your customers appropriately.

If I have a customer in the car Uber charges them the $6 and passes it through to me

The problem is if I i cross the causeway without an Uber rider, I eat the $6.

There is a permit requirement and an additional permit and fee for the airport
You do not eat it, you charge it back to the customer. Uber does it, Lyft does it, the cabs do it, the limousines do it; you do it. Explain to your customers in a courteous, professional and businesslike manner that all costs such as tolls will be added to the fare. In addition, apportion and pro-rate the costs of the airport and other permits to a by-the-ride overhead and add it to the fare. Restaurants have a "per-plate" charge for "overhead". You should, as well. Remember: All costs of doing business are passed on to the consumer.

My concern is an accident resulting in injury to my passenger
This is why you purchase the commercial coverage about which you have inquired.

Do everything legal is the best way... illegal way, one small mistake will make your life miserable for a long time
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^THIS^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Other than the insurance issues, I wont do private rides for these additional reasons...
1. The distance to drive to pick up the private ride is usually further than 99% of the pings I get.
2. Who pays the cleaning fee?
.

If you let the customer know that they will be paying more for this than what they pay to Uber, those who truly understand what it what and who want the reliability more than anything else will pay. Those who will not pay are people who expect a full bag of good oats for the price of oats that already have been through the horse. You do not want to deal with those people as your private customers, anyhow.

The typical Uber driver dosent see this as a business either
Make sure that they pay you what the service is worth, and you will do fine. One thing about having regulars, though, at least in certain markets (mine is one, as are many of the Florida markets), is the seasonal nature of the business in those markets. In my market, there are times when you will have more demand than you can handle. Then, there are special events that will allow you to honour the request of only one customer, although several will try to engage you for the evening.. Finally, there are the low seasons when most of your customers are either out of town or will not need your services for some time. Of course, you can ant during those times, but you will be fighting with the ants for the crumbs.
 
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