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Discussion Starter · #1 ·
So, recently I have been thinking about buying a 2013 - 2016 sedan to be used by an uberX + lyft + gett driver. The price of the car will likely be around 17 -26k depending on what I go with.

Looking at the honda accord, toyota camry and subaru legacy all in black. I am liking the legacy for the AWD in the winter time in NYC.

Now, I do not plan to drive the car, so would this even be possible? I was thinking of charging $400/week I and would have to pay for the insurance (or does the driver do that)? If this is the case I'm looking at 6k annually for TLC insurance. And then the car payments on top of that. Thinking I can make like $300 - 500 a month after expenses.

Thoughts?
 

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Discussion Starter · #3 ·
so how does it work then? the driver gets insurance and he has to pay for it? i can always give an incentive like i will pay half of the insurance so i have drivers interested to work with me...
 

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You will want to maintain the insurance just for the reason that if you let the driver do it they could "forget " to pay and take home a larger income. In an accident you as the car owner would incur some liability. So you maintain and secure all licences and permits.

I would try to set up the situation where all income generated comes through you so you can take out your share first before a payout. Other wise you will be relying on the driver to voluntary hand over his payment. Some horror stories behind that.
 

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You will want to maintain the insurance just for the reason that if you let the driver do it they could "forget " to pay and take home a larger income. In an accident you as the car owner would incur some liability. So you maintain and secure all licences and permits.

I would try to set up the situation where all income generated comes through you so you can take out your share first before a payout. Other wise you will be relying on the driver to voluntary hand over his payment. Some horror stories behind that.
Good point.
 

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Good point.
You late for the party. Market over saturated now. You will find the drivers because you will have new car but by January next year you will have 2 problems. 1 problem no drivers 2 problem your car will not in good shape. This is my opinion only.
 

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Discussion Starter · #9 ·
Car maintain will destroy your economic model.
maintenance in cars like accord, camry, legacy? typically those cars take a beating...

You will want to maintain the insurance just for the reason that if you let the driver do it they could "forget " to pay and take home a larger income. In an accident you as the car owner would incur some liability. So you maintain and secure all licenses and permits.

I would try to set up the situation where all income generated comes through you so you can take out your share first before a payout. Other wise you will be relying on the driver to voluntary hand over his payment. Some horror stories behind that.
this is a great point, why rely on someone else. so i will maintain the insurance (it seems like drivers typically maintain this) and pay the monthly fee but in turn can i charge a higher weekly rate since i pay the full insurance cost?

to maintain and secure licenses and permits - do you mean that i should get the tlc license myself?

how can you have a situation where the income generated will come to me first? wouldn't it go from client --> uber/lyft --> driver after their split. and then i have to get paid by the driver at the beginning/end of the week so he can continue driving my vehicle.

That and the driver would likely owe you more at the end of the week than they made.
even in a place like nyc with at least 4/5 boroughs? and using uber, lyft and gett? you have to be making a minimum of 1k a week easy if you're putting in 8-10 hours a day. every uber drive screen i have seen in nyc has been over 1500 so i think 1k is conservative.
 

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maintenance in cars like accord, camry, legacy? typically those cars take a beating...

this is a great point, why rely on someone else. so i will maintain the insurance (it seems like drivers typically maintain this) and pay the monthly fee but in turn can i charge a higher weekly rate since i pay the full insurance cost?

to maintain and secure licenses and permits - do you mean that i should get the tlc license myself?

how can you have a situation where the income generated will come to me first? wouldn't it go from client --> uber/lyft --> driver after their split. and then i have to get paid by the driver at the beginning/end of the week so he can continue driving my vehicle.

even in a place like nyc with at least 4/5 boroughs? and using uber, lyft and gett? you have to be making a minimum of 1k a week easy if you're putting in 8-10 hours a day. every uber drive screen i have seen in nyc has been over 1500 so i think 1k is conservative.
$1,500 gross or net?

Because if it's gross you minus atleast $500 to the black car fund or whatever and Ubers cut

Then minus out insurance, gas, matienance.. all that other nonsense...

You're left with like $600-700 roughly? I don't know because I never drove for them.. but I'm just going off what I've read on the forum.
 

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Discussion Starter · #12 ·
$1,500 gross or net?

Because if it's gross you minus atleast $500 to the black car fund or whatever and Ubers cut

Then minus out insurance, gas, matienance.. all that other nonsense...

You're left with like $600-700 roughly? I don't know because I never drove for them.. but I'm just going off what I've read on the forum.
are there any drivers in nyc that can comment?
 

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this is a great point, why rely on someone else. so i will maintain the insurance (it seems like drivers typically maintain this) and pay the monthly fee but in turn can i charge a higher weekly rate since i pay the full insurance cost?

to maintain and secure licenses and permits - do you mean that i should get the tlc license myself?

how can you have a situation where the income generated will come to me first? wouldn't it go from client --> uber/lyft --> driver after their split. and then i have to get paid by the driver at the beginning/end of the week so he can continue driving my vehicle.
Yes technically you could charge more than the going rate if Insurance is included. You would really have to do a market analysis to see what charges drivers are set up to pay. Of course you would want them to cover gas. But you would cover maintenance and repair. If you want you could put in a clause that they pay for tire damage so they are extra careful not to hit a curb, otherwise they pay for it. Also want to specify who pays the deductible in the case of an accident. Since you are the car owner it should technically fall on you but many pas that along to the driver. That is if they don't skip out on you after an accident. Also get it in writing that you will deduct for any parking tickets (don't want your registration held up). They wont tell you about them as they get them but hopefully you get a notice quickly enough in the mail to deduct from their pay. Also specify who pays for damage. Customer opens drivers side door into traffic and rips off an Audis mirrror. Who pays? You? Customer? Driver? Customer doe snot want to pay, who sues him? You the driver? Uber? (Uber, yea right) .

I think the way the payout would work is you would technically be considered a limo company to Uber and thus the people you lease to would be considered your independent contractors. So you could be in the middle of the payments technically since you will have an uber account with your car on it and you will add authorized drivers to your account (even if they already have one of thier own) and you will get paid their wages. Then you pass them on minus your weekly lease payment, fees, citations, deductions, etc. . I am not sure how the other TNC companies would handle this. But if you own the car and have the insurance I am sure yours account would be the primary one to get the money.

On the permits you would have to obtain and maintain the vehicle permits while the drivers would get their TLC chauffeurs licence. But you would have to maintain any permits to be legal at area airports, ports, train stations and the like. Most all are run the the port authority in NY NJ so its relatively easy.
 

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maintenance in cars like accord, camry, legacy? typically those cars take a beating...

this is a great point, why rely on someone else. so i will maintain the insurance (it seems like drivers typically maintain this) and pay the monthly fee but in turn can i charge a higher weekly rate since i pay the full insurance cost?

to maintain and secure licenses and permits - do you mean that i should get the tlc license myself?

how can you have a situation where the income generated will come to me first? wouldn't it go from client --> uber/lyft --> driver after their split. and then i have to get paid by the driver at the beginning/end of the week so he can continue driving my vehicle.

that's a good set-up. In nyc, another cabby is doing something similar with the green taxi permits. he bought two from TLC. one he drives himself and the other he has fitted onto another car. he picks up the cost of the car and the insurance (using TLC compliant insurance). He pays $450 per month for the car (leased through chrysler) and $600 per month for insurance and leases the car out at $450 per week. he isnt going to get rich, but he says it has been giving him extra money for around the house and helping with the family

the car is affiliated with a base (Pia transport out in brooklyn) and the drivers pay the base first at the start of the week. he pays $600 per month for the car and $600 per month for insurance and leases the car out at $450 per week. this way you get your money upfront. the downside is that the base takes 10% of his weekly upfront pay ($45 per week and much less than uber) and he has to rely on the base to find drivers. He says that with Arro, the base said ppl are coming back to them looking for taxis to take out. You should google this and go in that route if you have the money.
 

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Discussion Starter · #16 ·
Charge 450-500 for an accord or legacy
yeah was hoping to charge around this amount but wanted to be more competitive so i could find a driver fast. i am still researching on if i have to do any part of the tlc application process. or can i get the plates with out this and insurance etc.
 

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You are 100% spot on, what's on their dash is gross before Uber's cut, most of these new guys have no clue, but they all soon learn the cold harsh truth, and the end result is not pretty.
$1,500 gross or net?

Because if it's gross you minus atleast $500 to the black car fund or whatever and Ubers cut

Then minus out insurance, gas, matienance.. all that other nonsense...

You're left with like $600-700 roughly? I don't know because I never drove for them.. but I'm just going off what I've read on the forum.
 
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