On-Demand Transportation Platforms are one the hottest and most mature on-demand labor marketplaces and drivers have never had so many options to pick from. The basic concept is that a customer who has a smartphone application (app) uses the app and with one press of a button can request a ride. The app or more accurately the platform takes the customer's location and sends a message to the best positioned and available driver who had indicated their availability and location. The driver accepts the request just by using clicking a button and goes to pick up the customer. GPS makes requesting the ride and sending the driver to the customer location easy and automatic. The platform takes care of billing the customer and paying the driver automatically without the need for any cash to be exchanged. The platform provides the marketplace and keeps 20% of the fare as commission. The driver and customer both benefit from being able to transact directly thus cutting out the taxi company that may have high overheads, insurance, inefficiencies, poor customer service and poor technology. The biggest benefit is that anyone can become a taxi driver temporarily to make some extra money using their existing car and spare time and the customer benefits from a lower cost of ride and convenience.
The benefits for drivers are 'picking your own hours' and the easy and fast way to get ride/customers and make some extra money without committing to being a full-time driver.
The cons are the competition is getting stiff and rates fall as more and more drivers get into these platforms and you can't count on this for a long term or stable career. Additionally with self driving cars on the way, these jobs may soon be automated.
The drivers on this platform operate as independent contractors (1099) and thus don't get any benefits like healthcare, retirement, sick leave, etc.
Also the hourly rate these platforms pay you are gross billings, After you pay 20% to the marketplace, you also need to cover your own costs like car payments, wear and tear, insurance, maintenance, gas, etc. Most of these platforms discourage or disallow tips.
|On-Demand Driver Platform||What it offers on platform||Who's the customer||Who's the provider||How Big||Cities||1099/W2||Hourly Rates|
|http://get.uber.com/drive/||Rides||Consumers||Drivers with cars, SUVs, Limos||$50B market value, 185K drivers in US||Most cities in the world||1099||$10-25/hr Gross|
|http://www.lyft.com/drivers||Rides||Consumers||Drivers with cars, SUVs||Most cities in the world||1099||$10-25/hr Gross|
|http://www.luxe.com||Parking & Valet||Consumers||No car required||Major US cities||1099||$20/hr|
|http://www.side.cr/drivers/||Rides and Food Delivery||Consumer and Restaurants||Drivers with cars and SUVs||Major Cities in US||1099||upto $30/hr Gross|
|http://driver.grubhub.com/||Food Delivery||Consumers and Restaurants||Drivers with cars||Major US Cities||1099||~$20/hr Gross|
|http://www.doordash.com/dasher/apply/||Food Delivery from restaurants||Consumers||Drivers with cars||Major US cities||1099||upto $25/hr Gross|
|http://www.instacart.com/shoppers||Shopping and Food Delivery||Consumers and Stores||Drivers with cars||Major US Cities||1099 and some shoppers only W2||upto $30/hr Gross|
|http://postmates.com/apply||All kinds of deliveries||Consumers||Bike, Drivers with cars, etc||Major US cities||1099||~ $25/hr Gross|
|http://flex.amazon.com/||Deliver Amazon Prime packages||Consumers||Drivers with cars||Seattle, Major cities coming||1099||$18-25/hr Gross|
Signup and Background Checks
Most of the platforms have a very easy sign on process and if you have a clean background check, can afford a car and basic insurance and can use a smartphone- you are good to start. The background checks may include criminal and driving record checks and are usually something like