PodcastUberUberBlack

RSG018: What It’s Like To Drive For An Uber Black Fleet Owner

By April 27, 2015November 5th, 20169 Comments

Contents:

    I’ve been fielding lots of questions lately from drivers looking to try out UberBlack.  Unfortunately, Black registration is closed to individuals in pretty much every Uber city but there is a huge underground network of Uber fleet owners that are currently renting out their cars.  In today’s podcast, I break down who these fleet owners are and what it’s like driving for one of them.

    Smart drivers are always looking for new ways to increase their earnings without having to do additional work.  Renting from someone else probably won’t make you rich but it may be less risk and get you more money than your current situation.  I know some drivers have even considered building their own fleet so I’ll explain fully how that works too.

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    If you’d like to read a transcript of this podcast, please click here.

    Intro

    • YourMechanic hosted an awesome event in San Francisco recently showcasing Groove Clubhouse, a hangout for drivers in SF. I got to tour Groove Clubhouse, and you can see my recap here: therideshareguy.com/sfrecap
    • Groove Clubhouse is an important part of the rideshare experience, because driving can be isolating. A place like Groove can help foster that in-person interaction among drivers that can be lacking
    • With my code RSG15, you can get $20 off your first service with YourMechanic. I highly recommend them!

    What It’s Like Driving for Uber Black

    • Many of you have been asking about the difference among Uber services, like Uber X, Black, etc.
    • I was recently asked about the difference driving for yourself or driving for a fleet owner
    • Why you would drive for a fleet owner or why you would want to be a fleet owner versus an individual driver

    Why Drive for Someone Else

    • If you don’t have a car – although you could still drive UberX without a fancy car
    • UberPlus (also called UberSelect), Uber Black, and Uber SUV all require more expensive cars
    • UberPlus doesn’t require the same licensing that Uber Black or Uber SUV requires, and rates are in-between UberX and Uber Black

    Why and How to Drive for Uber Black

    • In most markets, Black and SUV is already closed, but you can join by working with a fleet owner
    • By joining with a fleet owner, you don’t have to pay for any of the licensing Black drives have to usually pay for
    • For example, Black fleet owner has 5 cars. Renters (us) rent from fleet owner to get started with Uber Black.
    • Fleet owners rent out the cars they own to us because they can always add and subtract drivers, but they can’t add more cars to their fleet. Constant staffing for them, flexible hours and Black prices for renters
    • Typically see fleet owners for UberPlus, Uber Black, and Uber SUV

    Who is an Uber Fleet Owner?

    • Most people driving for Uber Black or SUV are renting the cars from fleet owners
    • Very few individual private owners, like The Black Car Guy, because it is difficult as a single person to take care of licensing by themselves
    • Uber Black drivers mostly limo and private transfer companies that already have licensing
    • Uber knows this exists and has list of fleet owners.

    How to Contact Fleet Owners

    • A few ways to contact fleet owners if you’re interested in driving for them: contact Uber and see if they have a list of fleet owners. Sometimes Uber is willing to provide this information, sometimes they’re not
    • Go straight to the source by asking local Uber Facebook groups and see if any fleet owners are looking for drivers
    • If you take an Uber Black ride, ask drivers if they work for a fleet owner and see if they’d be willing to provide you their contact information

    What Does Driving for a Fleet Owner Look Like?

    • You’ll rent the car from the fleet owner and only pay for gas
    • Keep in mind rental fees – fleet owners may charge you a rental fee whether you work or not
    • Uber Black takes a 25% cut, the fleet takes 40% of your earnings after the 25% Uber cut, and you keep the rest minus gas and rental fees
    • For example, if you have $2,000 in earnings, Uber takes $500. You get 60% of remaining $1,500, $900 for you and $600 for fleet owner. As long as you can pay weekly fee, you can break even or make more money.
    • It’s not a no-brainer whether you should rent or drive your own – you’ll need to do some calculations to see if you’d break even. It depends on your market and demand. It is good because you don’t assume any additional risk, plus the pay is higher per ride

    Becoming a Fleet Owner

    • It’s difficult on UberX because of rules and regulations (which differ for every state) Profit margins would also be low for UberX
    • UberPlus and above is a little different. You’ll need to get licenses, but if you turn yourself into a mini-fleet owner (i.e. renting out your own car to other drivers), you could see a profit.

    Outro

    • Good topic because it’s another idea for you to maximize your income – maybe think about becoming a fleet owner?
    • The goal is to work smarter, not harder. Make your investment (your car) work for you
    • This is one of the reasons I started my video course, Maximum Ridesharing Profits. You can’t expect to turn on your app anymore and make a ton of money – it’s time to think outside the box
    • Don’t forget to subscribe to the email list to get new podcasts once they go live!

    Show Notes

    Have you thought about becoming a fleet owner or renting a car from a fleet owner?  What’s your experience been like so far?

    -Harry

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    If you’d like to read a transcript of this podcast, please click here.

    Harry Campbell

    Harry Campbell

    I'm Harry, the owner and founder of The Rideshare Guy Blog and Podcast. I used to be a full-time engineer but now I'm a rideshare blogger! I write about my experience driving for Uber, Lyft, and other services and my goal is to help drivers earn more money by working smarter, not harder.