Based on the popularity of companies like Uber and Lyft, the ridesharing industry has certainly proven itself to be profitable. To cash in on this profitability, thousands of people across the world are driving for rideshare companies to earn a living or make some cash on the side.
While drivers certainly make money hauling people around, there are other ways to profit from the ridesharing industry.
1. Invest in ridesharing stocks (with a reputable data source)
The potential for profit is huge in the ridesharing industry if you utilize a reliable source for data.
Data-driven decisions are effective and will yield better results. However, your data must be accurate, especially when you’re investing in stocks. If you’re a seasoned investor, you probably already get your data from a third-party aggregate source that uses an API to feed you the data. This technology is convenient, but there are potential flaws.
In an article published on Medium, Patrick Collins, Developer Advocate at Alpha Vantage, explains why it’s crucial to get accurate, real-time stock data through a trusted stock API. For example, your data provider might be feeding you incorrect data, or worse – they might not display historical data. Without historical data, you won’t have access to the corporate actions that retroactively affect a stock’s closing price.
Investing in stocks just because a company is popular may not be the right move. Popularity isn’t the only factor that determines the value of a company’s stocks. If you’re new to investing, consult a professional before making any moves. If you’re familiar with investing but not with ridesharing, Investopedia published an article describing precautions to take before investing in Uber or Lyft IPOs.
2. Develop an app that ridesharing company customers would use
All the major ridesharing companies – and even many of the smaller companies – operate entirely through a mobile app. The entire ridesharing business model is centered on a mobile app. This is good news for tech-minded entrepreneurs.
While ridesharing customers use the official company app to book rides, there are other applications those same customers might want to use. For example, many people aren’t loyal to one ridesharing brand and will book a ride from any company with the lowest price and fastest wait time. Some customers might be willing to open all their individual ridesharing apps to check availability, but many won’t bother.
To make life easier, you could create an app that aggregates booking availability from multiple ridesharing companies. Applications that aggregate booking data have been highly successful in the travel and hotel industries for years.
Although ridesharing is somewhat new, several companies have already launched comparison apps for ridesharing companies. However, like every piece of technology, first versions are usually outperformed by strong innovation and better delivery. If you can create a memorable brand, deliver amazing service, and market like an expert, you can transform your aggregate app into the app of choice.
3. Launch a blog about ridesharing and support smaller apps
Launch a blog about the ridesharing industry and commit to only supporting smaller ridesharing companies through advertisements and sponsored posts. If you think the little companies could never overtake Uber or Lyft, it’s actually a likely scenario.
While Uber and Lyft have dominated the industry for years, that may not be the case for long. Uber and Lyft have been the subject of heated controversy for years with issues over insurance coverage, wages, and employee vs. independent contractor classifications. A more recent controversy was Uber’s “conversation” section that allows passengers to tell drivers about their preference for conversation. Many drivers aren’t happy about being told when they can and can’t strike up a conversation.
Even if the smaller ridesharing companies don’t make it big, there will always be drivers and passengers who prefer smaller, local options.
4. Launch your own local ridesharing company
Why be the driver earning just over minimum wage when you could be the company owner turning a 6-figure profit?
Profiting from a ridesharing business won’t happen overnight and there aren’t any salary guarantees. In fact, it takes hard work and serious dedication to even launch a ridesharing company. Between city permits, city taxes, potential licenses, insurance, and other expenses, you’re looking at a significant start-up investment. However, if you’re willing to put in the work and see it through, you can make money with a ridesharing business.
Ridesharing is a growing industry
According to projections, the ridesharing market is projected to exceed $220 billion by 2025 with an annual growth rate of 19.87%. If you haven’t invested in this industry in some manner, there’s no better time than now.