9/18/2017

Is Ride Share Business Model a Fad or Here to Stay

Driving people from place to place, using your own vehicle has many positive aspects.

  • You become self employed.  Tax write offs.
  • You set your own hours.  Work any time you feel like it.  Day or night.
  • You get to meet interesting people.
  • You get to see the world, not behind a cubicle, but right in front of your eyes.
  • You can work part time or full time, you choose.
  • You get tips plus paycheck.
  • Revenue stream

There's a lot of freedom.

On the downside, you're car takes a real beating. 

  • Wrack up miles faster than one can image.
  • What does that do to the resale value.
  • What about frequent car repair.
  • Increases chance of auto wrecks, possible insurance increases.
  • No guarantee of riders.
  • What if your passenger takes you an hour away with no return fairs.
  • Increase competition as more drivers ready to pick up next ride.
  • Not sure if they get benefits, like days off, sick days, insurance, but I doubt it, freelancers.
I wonder what happens when the drivers require a new vehicle at the end of the year.  Wouldn't the cost of a new vehicle dip in to the profit stream worked so hard to get during the year.

Is ride sharing a good business model.  Definitely for the owners of the company.  Not much overhead, as they don't own the vehicles, the workers are not employees and the routes are selected via a derivative of machines learning and artificial intelligence.

Good model for the workers?  Perhaps.  Quick and easy revenue stream.  Just keep in mind, there are downstream hidden costs.

Will this model trickle into other segments of society?  Streamlined business model, keep the profits, place the burden of costs on the free-lanced workers.  If the goal in increased profits and decreased costs, seems like a no-brainer.

And there you have it~!

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