DriverSelect: Rent your car to Uber-drivers
A two-way money making service, DriverSelect (DS), is making it possible for both Uber-driver-partners and car owners to run their own businesses. Alina Hardcastle elucidates.
This new business model, which has been in operation for two months, is derived from RentMyRide, the peer-to-peer car rental platform. DriverSelect’s interim CEO, Howard Moodycliffe says, “Uber saw RentMyRide, liked the concept and approached us to build a similar platform for the Uber ecosystem.” Similar to RentMyRide, the new initiative does not own vehicles. Instead, it offers a platform for car owners to connect and rent their vehicles to Uber-drivers.
How it works
The online service will enable car owners to select the rental deal (price and duration) and the Uber-driver that they feel is suitable. DS offers two services; DriverSelect and DriverSelect Plus.
DriverSelect is for car owners who wish to manage the running of their vehicle(s) themselves. They only require DS to find them an Uber driver-partner, perform a comprehensive mechanical and cosmetic vehicle inspection at handover, and to manage the payments for the duration of the rental. The fee for this service is R250 per car, weekly.
Meanwhile, DriverSelect plus is for those who simply want a passive income from their car. In this case, DS does everything from finding Uber driver-partners, to managing payments, performing a comprehensive mechanical and cosmetic vehicle inspection every two weeks, processing insurance claims, redirecting traffic fines and handling all elements of vehicle support during the rental. This is a fully managed service. The fee is R600 per vehicle, weekly.
Essentially, DS is the answer to those who’d like to become Uber drivers but don’t have a car and for those who’d like to make extra income from their cars. But there are always risks involved. To ensure adequate security DS assures that there is thorough screening process.
Through DS’s integration to the Uber partner API, they are able to present owners with the prospective Uber driver-partners’ star rating and trip history, and their average revenue earned over the last four to six weeks. Moodycliffe adds that all the vehicles being rented by the Uber-drivers have trackers in them.
Car owners need to make sure that they have adequate insurance in place as Moodcliffe has stated that DS is not responsible for this. He says,” At this time DS does have an insurance policy to offer. As Uber is now so prevalent in the market there are a number of insurers that car owners can turn to.”
Willem Smith, managing director of Hollard’s personal lines explains that a situation such as this is complex and that the car would need to be considered as a “fleet vehicle”, as it will be used by many different users. Unless the vehicle is insured as such, it won’t be covered at all. If it is covered as fleet vehicle, the costs of insurance will be similar to rates paid by mainstream car rental companies, which is likely to be more than the insurance you currently pay for.
He adds, “This is quite new to South Africa and unless owners have made arrangements for additional/ different insurance with their existing insurer, loss or damage to their vehicle will not be covered, even if they enjoy comprehensive cover in terms of their existing car/motor insurance policy. Anyone considering such an arrangement should thus contact their insurer to arrange for additional cover or should ensure they thoroughly understand any alternative insurance arrangements that companies such as RentMyRide may have in place for owners.”
DriverSelect is currently available in Cape Town and Johannesburg.
For more information about DriverSelect, click here.
For more information about Uber-Wesbank deal, click here.
For more information about RentMyRide, click here.