The gig economy has been a source of income for many people who are frustrated at work and may be looking for a way out of a toxic work environment—big bonuses for referrals, blinking icons, flashy notifications, and so forth.
After all of the lights have gone out and the music stops, what is left over? In this article by a ride-share driver and for ride-share drivers, I will give my ten reasons why people struggle in the gig economy and what solutions to problems.
1. Unexpected Expenses
Many drivers experience these types of setbacks and suffer in silence. Personally speaking, I've been in three accidents and almost hit a deer three separate times. The financial setbacks have been troublesome, depressing, and sucked the life out of me.
The setbacks can include:
- Deductibles after an accident
- Flat tires
- Unexpected repairs
- Tickets
- Falling ill for long periods
Fortunately, I was not injured severely and could continue with the family's financial backing. If I were hurt or needed more money, I would lose everything. Even though family came through to help, the issue is that it is still an unexpected and tremendous loss.
Of course, drivers are not paid for the time they take to pick up passengers. That alone is a financial setback where anything can happen between picking up a passenger.
The solution here is to save as much as possible, at least $3000.00, to ensure you have a good cushion for any unexpected expenses.
2. No Empty Mileage Pay 
Many ride-share drivers have been there, the screen flashes, and it is time to eat a donut, nope! It's time to pick up that passenger 25 minutes away for free. The passenger is waiting, you know!
I don't mind going long distances for a pickup because sometimes your passenger does tip. But let's not talk about the what-ifs of passenger tipping; what if the ride-share company paid the driver for those miles?
Those extended pickups would not seem like a headache if drivers knew they would get paid for taking on the risk of getting in an accident, which is a part of the trip.
An excellent way to avoid this is to ensure you don't pick up no more than 10-15 minutes away and ensure the trip is longer than the mileage.
3. No Wait Time Pay
I posted a video showing the wait time of 42 minutes. There should be a way for drivers to get paid after 30 minutes of waiting without a trip. Of course, the summertime is a tough time for drivers due to the number of increased drivers on the road.
However, we need reform as drivers to not be driven into poverty. To solve this problem, I recommend using as many gig apps as possible to stay busy.
During that day, I made $0.00 in 42 minutes. I realized I was wasting my time; I was sent out to pick up food already taken by someone else, wasting my gas, time, and effort. So, working for free is not an option for me.
Another area for improvement is when there is a problem with some of the apps or the order, you have to sit there and wait for customer service, which is time you are not paid for.
4. No Workman's Compensation
5. Disappearing Bonuses & Surge
I remember back in 2019, there was this thing called a surge. The pandemic froze and un-froze the surge, and now, in 2022, it is almost non-existent for the most part. That little extra goes a long way when you add them up, especially when you have all the expenses as a driver.
The issue with the surge is that you are chasing a cloud that can disappear at any given time. Lyft does have some bonuses you can take advantage of, so check for new rewards and streak bonuses.
The only issue with Lyft bonuses is that sometimes your streaks can break, so it's essential to follow through; just remember that your customer can cancel and end your streak if there is no time left.
Another solution is to have a chauffeur-level service when you drive Uber & Lyft to maximize tips. Sadly, drivers aren't guaranteed a certain amount during different times, not just a few dollars.
6. Rising Costs
We all know the gas price has made drivers want to quit, and they are leaving. At the current time, the gas prices stand at :
- Regular: $4.968 Mid-Grade:$5.36 Premium:$5.66
| Year Ago Avg | Regular: | $3.071 | Mid-Grade: $3.420 | Premium $3.691 source |
The surcharge ride-share companies were paying to help drivers was .55 cents. More is needed for many drivers to continue driving. Read more
The solution can be an electric vehicle or hybrid if you can afford one. My question is, why don't ride-share companies start providing these vehicles for drivers?
7. Not Addressing Safety
8. No Hotel Or Housing Savings Or Benefits
9. Poor Customer Support
10. Ruined Motor Vehicle Report
A ruined motor vehicle report is something that will follow you over time. A lousy motor vehicle can affect you:
- When it is time to renew your insurance
- When you are applying for a new driving job
- When you are buying a new vehicle
- When you have to pass some online background
The issue is that it doesn't matter if you are at fault; just by being in an accident, you can mess up something you need in the future. At the time of writing this article, my insurance has doubled.
The key to avoiding this is driving much less and being extra careful. I had accidents where I was not at fault, and it didn't matter; my insurance got rid of me.
In conclusion, this article was helpful for those who want to know about the reality of gig work. I'm not attempting to discourage anyone, but give the cold, hard facts backed up by a driver for drivers. Think about the gig economy as a stepping stone to building a small business or gaining a new skill that can set you up for more solid ground.
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