HyreCar Review: Rent Out Your Car in the Sharing Economy

The post HyreCar Review: Rent Out Your Car in the Sharing Economy appeared first on Millennial Money.

When it comes to car habits, we millennials aren’t all that different from baby boomers. Research shows millennials own only slightly fewer cars per household than the average baby boomer at the same stage of life.

At the same time, millennials have an edge. You see, we’re digital natives and almost all of us have smartphones that make it possible to list cars online and rent them to strangers. We also tend to have a side hustle mindset.

By using apps to rent your car to folks who need it, you can significantly reduce the total cost of car ownership and offset the depreciation costs.

If this sounds appealing to you, one service to consider is HyreCar.com. Let’s take a closer look to see what this car rental company is all about.

What is HyreCar?

HyreCar is a peer-to-peer car sharing marketplace that enables HyreCar drivers to rent vehicles so they can make money by choosing to drive for Uber and Lyft.

Unlike Turo, this rental service isn’t for personal use.

HyreCar was founded back in 2014 by Anshu Bansal and Abhishek Arora. It now operates out of Los Angeles and has secured $34.7 million in funding. Today, the service is active in all 50 states and Washington, D.C.

There are two ways you can make money through HyreCar: HyreCar for Owners and HyreCar for Business.

HyreCar for Owners

HyreCar for Owners is a free marketplace that enables you to earn passive income when others rent your car.

Simply build a profile and add images of your car and a description. Customers can then find you in the online marketplace and reserve your vehicle.

HyreCar advises keeping descriptions short, simple, and accurate. Ultimately, descriptions should tell drivers why they should rent from you instead of other vehicle owners.

For example, you might mention that your car is impeccably clean or has a built-in karaoke machine. If you’re located in an urban area, you could explain how its backup camera makes it easy to squeeze into tight parking spots.

Keep in mind that most drivers want a reliable car and will lean toward functionality and efficiency over flashiness.

HyreCar for Business

HyreCar for Business is a service designed to help you scale your operations and launch a fleet of vehicles.

By signing up as a HyreCar for Business partner, you can receive support for building your brand and maximizing listings in your local area. The company also provides resources for scaling and managing a fleet and promoting your vehicles.

This is an option if you have multiple cars you want to put to use. Assuming they’re clean and in good condition, you could use HyreCar for Business to start a mini fleet. With three cars in operation, you could potentially start raking in cash and make enough to expand to a fourth vehicle.

This is where the costs come in. HyreCar for Business costs $12,049/ month (15 vehicles), $40,163/ month (50 vehicles), or $80,327/ month (100 vehicles).

HyreCar’s vehicle buying program

In addition to renting cars through HyreCar, you can also trade in your vehicle and connect with local dealerships through HyreCar’s auto buying tool.

That said, it’s always good to shop around and get multiple quotes when selling a car. Use this tool as part of a larger selling strategy and avoid taking the first offer.

HyreCar for Owners Features

Since you’re reading, you probably don’t need to manage a fleet — at least not yet. You probably want to make some extra cash by renting your car.

So let’s take a closer look at HyreCar for Owners.

Passive income

The coolest aspect of HyreCar is the opportunity to bring in passive income, meaning you can earn money without really having to do anything.

Of course, you have to maintain the vehicle and manage your account online, so this isn’t totally hands-off. However, earning money doesn’t require any work. It’s just a matter of letting other people borrow your car and collecting income whenever people choose to do so.

According to HyreCar, you can bring in up to $12,000 per year through its rental program. Not bad!

Business-minded customers

The idea of letting someone else drive your car can be unsettling.

With HyreCar, renters must work for ridesharing companies like Uber or Lyft. So you’ll be working with professionals who need transportation to make money as opposed to roadtripping or joyriding around town. So you’re bound to attract a more responsible crowd.

Furthermore, HyreCar has a vetting process in place to filter out the riffraff and protect your investment.

Flexible listing

Listing a car is easy and fast.

HyreCar gives you full control over what you can put in the description. Include the make, model, condition, and any features you want to highlight. You may also set a mileage limit and decide when your car is available.

Remember, this description is like an advertisement. It’s worth putting in the extra effort of crafting the perfect listing.

Set your own price and commission

HyreCar offers an open market. This means you can set your own pricing and optimize it depending on the time, demand, and local market conditions.

For example, you may want to lower the price of your car during off-peak times when there aren’t as many drivers on the road. At the same time, you could jack up the price during busier times.

According to HyreCar, rental costs typically range from $30 to $45 per day, $200 to $300 per week, and $800 to $1,110 per month.

Insurance policy

HyreCar offers a comprehensive protection plan for drivers and owners.

All HyreCar drivers receive built-in rideshare insurance coverage that lasts for the duration of the rental period. Customers must also have an account through The Ride Share Company.

Insurance is the combination of HyreCar’s insurance, private owner insurance, and Ride Share Company coverage.

User-friendly app

HyreCar works on both Android and iOS devices. It has a 3.6/5 star rating on Google Play, and 4.5/5 stars in the App Store.

One of my favorite HyreCar features is that it allows you to communicate with customers directly through the app. If someone is running late or they have a question, you can exchange messages and quickly resolve issues together.

With its modern, intuitive design, you shouldn’t have any trouble navigating the app.

HyreCar pricing

It’s completely free to download HyreCar and list a vehicle.

HyreCar takes a 15% rental fee as a commission on the listed price of your vehicle. This isn’t terrible when considering it takes very little work to create a listing. For example, if you list a car at $50 per day and the driver has it for two days, you’ll still get $85.

Fees and violations

Drivers have to pay for any moving violations, tolls, and tickets they accumulate while driving. So, if you get a ticket in the mail when a driver ran a red light, you should get compensation.

You’ll also make more money if the driver fails to return the vehicle on time. HyreCar offers a two-hour grace period. Beyond that, the driver has to pay a full day plus late rental fees.

You can choose to waive the late return fee. This requires submitting a waiver in writing to HyreCar.

How it works

Here’s a breakdown of how to start renting your car on HyreCar.

1. Confirm vehicle eligibility

First, make sure your vehicle meets your state’s requirements for HyreCar, Uber, and Lyft.

HyreCar has a comprehensive list of state-by-state instructions for vehicle requirements. You’ll notice that some states are more lenient than others.

Your car will need to pass a 19-point inspection before you can rent it to drivers.

You can sign up for a quick vehicle inspection through RideShare. Schedule an inspection, go through the process, and stash the documentation in a secure place for quick reference.

Once you confirm your vehicle is in order, sign up with HyreCar.

Provide your name and contact information, vehicle registration information, and inspection documents. You’ll also want to add some clean photos and a description to your profile.

Pro tip: It isn’t a bad idea to hire or barter with a photographer friend to get a few professional pictures of your car’s interior and exterior. Photos are important for attracting renters.

4. Respond to driver requests

When your listing is active, the app notifies you whenever someone requests to rent your ride.

Remember to confirm the application quickly because requests expire every 24 hours. Quick responses also reduce the likelihood of a driver finding another car and canceling the request.

As HyreCar explains, drivers tend to book multiple entries at a time to increase their chances of securing a ride. So, if you aren’t on the ball, you will most likely lose the deal to someone else.

5. Verify documents

Before you hand over the keys, it’s crucial to check your documents to make sure everything is accurate and up to date.

Look over your registration and insurance documents to avoid any potential issues. The site also recommends that you don’t give the keys to the driver until the correct insurance documents appear on your dashboard. HyreCar generates insurance info 24 hours before pickup.

6. Hand over the keys

The next step is to confirm a location and choose a spot to hand over the keys.

When you meet the renter, it’s imperative that you verify their driver’s license to make sure they are who they claim to be.

You’ll also want to verify the current state of the vehicle. Walk around the car, perform an inspection, and check the fuel and mileage.

When everything is in order, hand over the keys and send the driver on their way.

This process might sound like a hassle. But it should only take a few minutes.

7. Pick up the vehicle

Once the rental ends, you’ll have to meet the driver at an agreed-upon drop-off point. Coordinate a time and take it from there.

The driver may request to extend their rental for a few hours or even until the next day. If that’s the case, you can choose to grant more time if you feel like it.

It’s important to build some flexibility into your schedule so you don’t get stuck in a situation where you can’t pick up the car or can’t access it when you need it.

8. Rate the driver

Don’t forget to rate the driver after the transaction is complete. This helps improve the safety of the HyreCar community and keeps the marketplace up to date with current feedback.

9. Get paid

You have to link your bank account to get paid by HyreCar. The company doesn’t use PayPal or write checks.

The good news is that HyreCar has a secure payment portal, and it’s super easy to use. All you have to do is link your bank account via ACH, and the company pays you automatically after charging the driver.

I like this feature because there’s no fee to cash out, and you don’t have to sign up for any third-party banking services.

HyreCar promotions

Affiliate referral program

Know someone who may want to list their vehicle on HyreCar? The company now has an enticing affiliate referral program.

To access this feature, create an account and personalized referral code through the HyreCar affiliate marketplace. Then, share the link with your contacts.

You can earn cash for every new driver that rents with HyreCar.

The company pays $100 for every new driver rental and $25 for every background check submitted in Atlanta, Las Vegas, Los Angeles, Philadelphia, Washington, D.C., Dallas-Ft. Worth, New Jersey, Houston, and New York.

Affiliate partners can receive $20 for every new driver rental and $10 for background checks in other locations.

Bonus campaigns

Affiliate partners can earn an additional $600 per month through various bonus campaigns.

Tier 1: $100 one-time bonus for delivering 10 new rentals
Tier 2: $275 one-time bonus for delivering 25 new rentals
Tier 3: $600 one-time bonus for delivering 50 new rentals

To encourage signups, make sure to tell your friends about HyreCar’s new driver incentive. The company offers a $75 gift card for all new initial bookings totaling three days or more in a single transaction.

HyreCar Security

For the most part, HyreCar is safe to use.

All drivers have to pass a background check to rent a vehicle. In other words, you won’t be renting to strangers. You’ll be dealing with gig economy rideshare drivers who need to make pickups and deliveries. In addition, all cars must pass an inspection to qualify.

If you still feel uneasy about renting your car out, consider purchasing PassTime GPS, which HyreCar customers can now get at a discounted price of $120 per unit. This tool comes with automated GPS tracking, remote vehicle disable, mileage tracking, and even speeding alerts, among other benefits.

With all of that being said, there’s always some risk involved when renting your car to strangers.

Customer Service and Support

Customer support is important when using a service like HyreCar. Eventually, you’ll run into some issues, so it pays to work with a company that has your back.

HyreCar offers basic support through a phone number at (888) 688-6769. The company also offers an online help portal for owners.

Disclaimer: I am seeing some concerning customer complaints on the BBB website, where HyreCar has only a 1.03-star rating (out of 5) and a B- rating.

Pros and cons of HyreCar

Advantages

Owners control pricing
Safe and user-friendly app
No fee to list your car
Ability to earn passive income

Disadvantages

No live chat or email option for customer support
Concerning customer complaints and BBB rating
Requires trusting strangers to drive your car

Alternatives to HyreCar

Best mobile car rental app: Getaround

Getaround is a rental service with more than 2 million users across the U.S. You can use Getaround to offer a single car or manage a fleet.

Best for personal use: Turo

Turo is very similar to HyreCar. The main difference is it allows you to rent cars for personal use.

On one hand, Turo’s a bit riskier than HyreCar because you’re dealing with regular consumers instead of sharing economy workers who intend on using the car for work. However, it’s scalable, and you can choose the number of cars you want to share. Turo also offers insurance and a user-friendly app.

GetMyBoat

GetMyBoat helps boat owners connect with renters. You can use GetMyBoat to rent jet skis, yachts, fishing charters, and pontoon boats.

Boats can be very expensive to own and operate, and this is a great way to bring in extra money on the side. Rent your boat while you’re in the office during the week, and you just might make enough to cover your monthly fees.

Top delivery and rideshare companies

DoorDash

DoorDash is the leading food delivery app, commanding 56% of the market. DoorDash processes orders from local restaurants and pays drivers — or Dashers — to make deliveries.

Additionally, DoorDash also owns the popular Caviar delivery service, which is only available in select markets. Delivery service drivers can potentially earn more by picking up Caviar orders as well.

GrubHub

GrubHub is another top choice for food delivery, with a similar model to DoorDash. The company serves over 4,000 U.S. cities.

Postmates

Postmates gives customers access to retailers other than restaurants. As a delivery driver, you can pick up groceries, office supplies, or household supplies in addition to food.

Instacart

Instacart’s a service that connects customers with local grocery shoppers. Download Instacart and create a profile, and you can make money picking up groceries and dropping them off at various destinations in your area.

For example, Mrs. Jones down the street might need milk and eggs. You could be her hero… and collect base pay plus tips in the process.

Learn More:

HyreCar FAQs

Is HyreCar worth it?

If you have a car collecting dust, HyreCar is probably worth it. The only real drawbacks are the 15% commission fee and the fact that you need to entrust strangers with your car.

How much does HyreCar pay?

You have total freedom to set pricing when using the HyreCar app.

This is actually a bit trickier than it sounds. You have to poke around and see what other similar models are renting for. You don’t want to list your car for too much, or people will bypass your listing. And at the same time, you don’t want to underprice your ride.

Rental costs typically range from $30 to $45 (daily), $200 to $300 (weekly), and $800 to $1,110 (monthly), so this is what owners can expect to bring in, minus a 15% commission.

Is HyreCar tax-deductible for owners?

Ask your accountant or tax advisor. Chances are you’ll be able to deduct certain maintenance expenses if you’re making money renting your vehicle. This may also include things like cleaning, car repairs, and parking. Everyone’s tax situation is unique.

The Bottom Line

HyreCar offers an easy way to earn extra income from your car without having to drive it.

At the same time, you’ll be helping rideshare and delivery service drivers make money. In other words, HyreCar rentals directly empower the ridesharing gig economy.

If you’re comfortable giving your wheels to someone else, you might be able to rack up several thousand dollars over the course of a year, all without having to do a heck of a lot.

It might sound too good to be true, but it isn’t. If you have a car that you don’t need to use every day, why not give it a spin?