Rideshare Redux
First off, I apologize for dropping the ball on my ride share experiment. I plan to pick it up soon but life has simply intruded.
In the mean, I discovered something interesting that I misapplied in my previous posts - the .575 government rate. Seems it INCLUDES gas so to add the actual gas charges is in fact erroneous.
Thus, Experiment #1, I was still underwater driving Uber, just about breakeven on Lyft.
Experiment #2, technically made about $6 for two hours work.
Experiment #3, still nothing to write home about.
But at least I will be more accurate moving forward. At some point, I will attempt to intuit the ACTUAL cost of operating a vehicle. It strikes me that the government number is quite arbitrary as it does not address the actual vehicle used in any way.
For instance, the tires on a Porsche 911 cost about $2000 and last for only 10,000 miles so it's 20 cents a mile to operate just for rubber - that's actually more than the gas! An extreme example but I'm sure many in the new administration have one in their respective garages.
Many other factors come in to play as well such as the state you insure - NJ is one of the most expensive - and maintain - ditto - the vehicle.
Regardless of all this number crunching, the most important factor to bear in mind - and the ultimate entrepreneurial lesson IMHO is that you NEED A PLAN.
My experiments were just that - an opportunity to get some first hand knowledge without the burden of actually having a plan! Many entrepreneurs undertake the same exercise. They hang up a shingle and see what happens.
Once you have some experiential knowledge, it's time to pivot. In the case of the ride share 'experiment', I need to create a marketing plan. How can I position myself to achieve the best ROI? What resources do I need to bring to bear?
For instance, and with no undue irony, perhaps the X4 is not great choice as the vehicle! Albeit, the maintenance is covered for the first 48k miles so perhaps it is not a bad a choice as it appears at first blush. Some analysis would need to be done but suffice to say, I have no intention of buying a Prius or Tesla which I think would be optimal.
Next, where and when to drive. I have been peppered by both Uber and Lyft with offers and enticements. taking advantage of surge zones is key as is being available during events when large numbers of riders seek limited driver supply.
Finally, I will need a structured system, routine and most of all complete commitment to the enterprise in order to have any realistic chance of success. Clearly, that won't happen as I have no desire to adopt driver as my primary avocation.
So, to be continued at a later date....
One other liner note - I used my driving experience to write another screenplay, this one about a CEO of a ridesharing company who gets in trouble when a video goes viral and then enlists a driver to help rehab her image. Sound familiar? Oh, it's a love story...
In the mean, I discovered something interesting that I misapplied in my previous posts - the .575 government rate. Seems it INCLUDES gas so to add the actual gas charges is in fact erroneous.
Thus, Experiment #1, I was still underwater driving Uber, just about breakeven on Lyft.
Experiment #2, technically made about $6 for two hours work.
Experiment #3, still nothing to write home about.
But at least I will be more accurate moving forward. At some point, I will attempt to intuit the ACTUAL cost of operating a vehicle. It strikes me that the government number is quite arbitrary as it does not address the actual vehicle used in any way.
For instance, the tires on a Porsche 911 cost about $2000 and last for only 10,000 miles so it's 20 cents a mile to operate just for rubber - that's actually more than the gas! An extreme example but I'm sure many in the new administration have one in their respective garages.
Many other factors come in to play as well such as the state you insure - NJ is one of the most expensive - and maintain - ditto - the vehicle.
Regardless of all this number crunching, the most important factor to bear in mind - and the ultimate entrepreneurial lesson IMHO is that you NEED A PLAN.
My experiments were just that - an opportunity to get some first hand knowledge without the burden of actually having a plan! Many entrepreneurs undertake the same exercise. They hang up a shingle and see what happens.
Once you have some experiential knowledge, it's time to pivot. In the case of the ride share 'experiment', I need to create a marketing plan. How can I position myself to achieve the best ROI? What resources do I need to bring to bear?
For instance, and with no undue irony, perhaps the X4 is not great choice as the vehicle! Albeit, the maintenance is covered for the first 48k miles so perhaps it is not a bad a choice as it appears at first blush. Some analysis would need to be done but suffice to say, I have no intention of buying a Prius or Tesla which I think would be optimal.
Next, where and when to drive. I have been peppered by both Uber and Lyft with offers and enticements. taking advantage of surge zones is key as is being available during events when large numbers of riders seek limited driver supply.
Finally, I will need a structured system, routine and most of all complete commitment to the enterprise in order to have any realistic chance of success. Clearly, that won't happen as I have no desire to adopt driver as my primary avocation.
So, to be continued at a later date....
One other liner note - I used my driving experience to write another screenplay, this one about a CEO of a ridesharing company who gets in trouble when a video goes viral and then enlists a driver to help rehab her image. Sound familiar? Oh, it's a love story...
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