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Millions of people are joining the on-demand economy, also known as the gig economy, in order to earn extra cash as independent contractors. Whether you own a car that you want to rent out, or you are listing a spare room or apartment on Airbnb, there is a huge opportunity to earn money in the gig economy.
Driving for rideshare and delivery companies like Uber, Lyft, DoorDash, and Instacart is one of the most popular jobs in the on-demand economy. In order to do this, you need a qualified car.. Let’s say you don’t currently own a vehicle that can be used for ridesharing. Should you buy one or rent one?
Leasing or owning a car for ridesharing, as well as personal use, can be extra costly, due to huge down payments ,high interest on your monthly payments, and scheduled maintenance services. This is why many drivers are saving money by renting cars. Not from giant pricey companies like Avis or Hertz, but more affordably through carsharing services like HyreCar and Turo.
Similar to how Airbnb works in the sharing economy, carsharing means someone who owns a vehicle, one they don’t use, lists it with a carsharing service, which in turn rents it out to drivers who need a car for either gig work or travel.
When it comes to carsharing, both HyreCar and Turo offer similar services. However, there are definitely some differences hat you should know about. Let’s talk about the main categories you should consider when choosing the best carsharing company for you.
How It Works
For Drivers: It only takes a few steps to rent a car from an owner who has listed theirs with HyreCar.
- Download the HyreCar Driver App and sign up using Facebook, Apple, Google or Email.
- Complete your profile by entering your personal and driving information. HyreCar then will run a quick background check to verify your driving record. This is so you can be approved as a driver, which usually only takes a few hours.
- Browse the marketplace in the app for cars in your area. You’ll be able to filter for your desired vehicle type and see clear photos of the various cars on the platform near you. HyreCar also provides the daily, weekly, or monthly rental charge that owners are asking as well as the distance each car is from your current location. HyreCar has vehicles available in all 50 states.
- When you find a car you like, click “Book Now” and select how many days you’d like to start with. The car owner then has 24 hours to approve or decline your booking request.
- Once the owner approves your request, you’ll receive the vehicle registration, 19-point inspection, and insurance documents. These three docs need to be uploaded to your gig services (Uber, Lyft, DoorDash, Instacart, etc.). Then, drivers arrange a meet up with the owner so you can inspect and pick up the car in person. Sometimes, owners will even deliver the car to you, so don’t be afraid to ask! Now it’s time to slide behind the wheel and start earning some sweet, extra cash by driving with any gig service you desire. Oh, and if you’d like to continue driving, simply extend your rental in the HyreCar Driver App.
- When you’re ready to return the car, fill up the tank before you bring it back to the owner, and schedule a drop-off.
For Owners: Here are the steps for renting out your car.
- Register your car with HyreCar, at no cost. Get the vehicle inspected, then upload your registration, inspection documents, and quality photos of the vehicle. Make sure the photos are sharp and clear, showing the cleanliness and condition of the car’s exterior and interior. Set your desired protection plan for each car you list.
- Note: Still need to get your car inspected? Check out our friends at Rideshare Mechanic to get your vehicles inspected remotely. This service conducts a video vehicle inspection, which eliminates the inconvenient process of going to a Jiffy Lube or local mechanic. Their cost is comparable to your local mechanic, and you don’t pay unless your car passes the inspection. Click HERE to sign up with Rideshare Mechanic and get your vehicles inspected quickly and efficiently.
- You’ll receive a notification when someone wants to rent your car. We recommend responding ASAP because drivers typically apply to multiple vehicles at the same time.
- Once you’ve approved the rental request, arrange to meet the driver so they can pick up your car. Be sure to verify that all of your vehicle documents (registration, personal insurance, inspection, etc) are up to date.
- Meet the driver! Verify their license and inspect the condition of your car together. Check the fuel and mileage, and hand over the keys.
- When the driver no longer wishes to rent your car, arrange a meeting time so they can return it to you. Inspect the car for any damages, rate the driver, and take the keys back. Then, list your car as available for rent again on the HyreCar platform and earn more extra cash!
NOTE: Once you’ve successfully listed your vehicle on the HyreCar platform, you should consider using Neighbor to rent out the (now) empty space in your garage or driveway.
HyreCar’s cancellation policy is as follows:
Drivers and owners can easily cancel as long as the cancellation occurs prior to picking up the vehicle. In both cases, a driver or owner must contact HyreCar support to put the cancellation in motion. If a driver does cancel after already being charged for the rental, (but again, before pickup) HyreCar will give the driver a full refund if the reason for cancellation is deemed reasonable.
When a driver cancels the rental after pickup, say, due to car problems or just to return the car earlier than expected, HyreCar will reimburse a monetary amount based on days left in the rental, minus processing fees.How Does Insurance Work?
HyreCar’s insurance policy for drivers is pretty straightforward and is included in the cost of the rental. It covers you when you’re driving your rental vehicle on the way to pick up, or after dropping off, passengers, but not when passengers are in the car. This is very similar to most ridesharing and delivery insurance policies. Here are the basics:
- HyreCar’s Insurance Coverage is only provided for the Driver while renting a vehicle through HyreCar. By renting a car through our platform, Driver’s agree to use the vehicle to drive for a TNC. The amount that the Driver is liable to pay out of their own pocket for Physical Damage (other than interior damage) for the rented car is contractually limited to a contingency fee up to $1,000.
- Insurance begins and ends at the start and end time of your rental. If you extend your rental, you’ll want to make sure your insurance coverage gets extended as well.
- Uber or Lyft’s own rideshare insurance policies override HyreCar’s policy when you have passengers in the car.
- Vehicle owners are required to have personal auto insurance at the state minimum.
For owners, HyreCar Protection provides a variety of coverage options through its insurance partner(s) to give Owner’s the flexibility to conveniently choose coverage levels they would like to receive while their vehicle(s) are rented out on the HyreCar platform. These plans include liability insurance, physical damage responsibility, and additional services like tickets and tolls.
What Do The Reviews Say?
According to this The RideShare Guy review, renting a vehicle through HyreCar is an easy, positive experience. Here’s why:
- Customer service is excellent and easy to access.
- Trust and safety are established through HyreCar’s vetting process.
- There are thousands of high-quality affordable cars that are perfect for any rideshare or delivery service. Plus, there is a nice selection of luxury vehicles available for upper levels of Uber-like Uber Select, Uber SUV, and Uber Black.
- The costs of vehicle maintenance and depreciation are built into the price of the rental. You’d have to pay these yourself if you owned your own car.
- HyreCar provides flexibility, meaning it’s pretty simple and quick to get in and out of rentals.
How It Works
For Drivers: Signing up for renting a vehicle through Turo is very similar to HyreCar’s sign up process. Here are the five steps for drivers:
- You create an account with Facebook, Gmail, or your email account. Then, wait for approval.
- Search for cars in your area used for travel or leisure.
- Book your vehicle. Some cars have a Book Instantly option. Vehicle owners have up to 8 hours to respond to your request.
- Arrange for vehicle pick up with the owner. You can also have the car delivered for a fee. (HyreCar owners do not charge a fee to deliver a rented vehicle to a driver) Then present your license at pick up.
- Return the car at the location you’ve arranged with the owner, after filling the car up with gas.
For Owners: Four easy steps for owners to list their cars with Turo:
- Create a free account. Describe your car in detail and upload quality photos of it. Keep your calendar of car availability updated for potential drivers.
- Respond to rental requests.
- Arrange to meet with the driver at a mutually convenient time and place. Do a check of your car’s condition, mileage, and how much gas is in the tank. Make sure all documents are up to date that the driver has a valid license.
- Pick your car back up from the driver at the arranged time and location. Make sure you rate your experience with the driver when it’s all done.
Turo’s cancellation policy is as follows:
Turo offers either free refunds or a portion of the cost depending on how soon you cancel your rental after booking.
How Does Turo’s Insurance Work?
Turo’s Insurance policy is somewhat more complicated than HyreCar’s insurance policy. Here are the basics regarding Turo insurance, but you might want to do some further research on your own before driving or renting with the company. Important: You need to have your own personal insurance in order to register your car with Turo as an owner. Drivers looking to rent do not need personal auto insurance.
- Turo offers 5 insurance options for coverage: Owner Provided, Basic, Standard, and Premium.
- 60 Plan: Earn 60% of the trip price in exchange for 100% of damage paid by Turo (no deductible)
- 75 Plan: Earn 75% of the trip price in exchange for 100% of damage paid by Turo ($250 deductible)
- 80 Plan: Earn 80% of the trip price in exchange for 100% of damage paid by Turo ($750 deductible)
- 85 Plan: Earn 85% of the trip price in exchange for 100% of damage paid by Turo ($1,625 deductible)
- 90 Plan: Earn 90% of the trip price in exchange for 100% of damage paid by Turo ($2,500 deductible)
What Do The Reviews Say?
RideSharingDriver.com posted a review of his experience renting from Turo. Here are some of his main pros and cons:
- RideSharingDriver.com writes that If you’re looking to rent a high-quality vehicle at a decent price, say like a BMW, Turo is a good peer to peer car sharing service to choose, as they are competitive price-wise with big name rental companies.
- There were a lot of cars to choose from and It was easy to search for and select a car.
- Coordinating with an owner is a little more work with Turo than a general rental would be, which may not appeal to some.
- Because of added fees (insurance protection, gas), the listed price may not be reflective of your actual total.
- He wasn’t crazy about steep delivery fees that Turo tacks on if you don’t pick up your rental in person from the owner. For example, having the owner deliver the car to you costs an extra $20.
Conclusion: What is the Best Car Rental Alternative? Comparing HyreCar and Turo
If you’re thinking of renting a car for Uber driving or other rideshare and delivery companies, we recommend HyreCar for a few important reasons.
Turo is meant to be a substitute for your regular car rental service, which might make it a good choice for a weekend drive or a business trip, but makes it less ideal if you’re hoping to use it to make money for weeks or months at a time.
As a car owner, HyreCar is your best solution if you want to rent out your car out to business-minded individuals who will turn around and earn incomes via Lyft, Uber, Postmates, or other gig services. Rental durations with HyreCar are typically longer since drivers are renting in order to work and earn cash.
If you’d rather stick to renting your vehicle to those looking for a weekend trip or personal use, then you may want to consider Turo.