Uber & Lyft Financing: 10 Best Options for a Rideshare Business

Depending on your business needs, the best ways to fund your rideshare business should offer competitive pricing and flexible contract terms. For renting a car, this could come in the form of low daily rental fees and the ability to rent a vehicle with little to no minimum time commitments. For loans and credit cards, this could mean low rates and the ability to conduct early payoffs with no penalties or fees.

Since a rideshare business carries many types of expenses, we’ve selected funding options that can cover the costs commonly associated with this line of work—whether it be purchasing a vehicle, renting one, or covering other business related expenses.

Here are our top 10 picks for the best ways to fund your rideshare business:

• Uber Marketplace: Best flexible car rental terms for Uber drivers
• Lyft Express Drive: Best affordable car rental rates for frequent Lyft drivers
• HyreCar: Best ridesharing rentals for low-mileage drivers
• Bluevine: Best credit line for recurring expenses and emergencies
• Clarify Capital: Best for low rates and multiple loan options
• Lendio: Best for large financing needs
• SMB Compass: Best for long-term equipment financing
• LightStream: Best business auto loans for new or used vehicles
• U.S. Bank Business Triple Cash Rewards World Elite Mastercard^®: Best business credit card for fuel purchases
• U.S. Bank Business Altitude™ Connect World Elite Mastercard^®: Best for welcome offer and travel rewards

Best Ways To Fund Your Rideshare Business At a Glance

Uber Marketplace: Best Flexible Car Rental Terms for Uber Drivers

Why We Like Uber

Uber financing can be provided to both full-time and part-time drivers operating a rideshare business. Uber Marketplace allows for flexibility and convenience to rent cars on an as-needed basis, with no minimum time or ride commitment. These features are why we chose it as the best choice for flexible car rental terms. Notably, insurance, mileage, and basic maintenance are included.

Uber partners with various car rental companies depending on your location. Each has varying eligibility requirements to rent a vehicle, but you’ll generally need to have at least one year of driving experience and meet the minimum age requirements to be eligible.

When choosing a rental car, drivers should remember that the type of vehicle selected can affect the types of rides they can get. For example, SUVs or larger vehicles may be required to be able to accept ride requests with more than four passengers. A newer vehicle may also be required for drivers who wish to accept requests for luxury rides.

If you’re looking for Uber financing, visit the Uber Marketplace website to learn more about qualification requirements and rental options or to apply as a driver.

Lyft Express Drive: Best Affordable Car Rental Rates for Frequent Lyft Drivers

Why We Like Lyft

Rideshare owners interested in the Lyft platform can rent vehicles through its Express Drive program. Rates can fluctuate depending on your location; however, Lyft offers some of the lowest rates out of the three car rental companies we selected in this guide—making it our pick for the most affordable car rental rates. With that being said, you will be required to complete at least 20 to 40 rides per week to keep your rental.

Lyft vehicle financing has partnerships with two rental car companies for its Express Drive program: Flexdrive and Hertz. Drivers should note that there may be limited availability, as the program is only available in select cities throughout the US. You can see the list on Lyft’s website.

For payment convenience, car rental fees with Lyft Express Drive are deducted from your earnings. If your earnings are insufficient to cover the rental costs, you’ll be charged according to the payment method you’ve designated. Drivers will also have to pay a refundable deposit to rent a vehicle, which will be issued back to them within three weeks of returning the car.

Visit the Lyft website to learn more or to apply for the program.

HyreCar: Best Ridesharing Rentals for Low-mileage Drivers

Why We Like HyreCar

Unlike many other car rental providers, HyreCar stands out because it has nationwide availability. However, it does impose a daily mileage limit that would make it a more ideal fit for part-time rideshare drivers, which is why we chose it as the best rental option for low-mileage drivers.

HyreCar differs from Uber and Lyft in that when you rent a car, you could be getting a vehicle owned by either an individual or a business. Mileage limits are set by each individual owner, so you’ll want to check and ensure the limit is sufficient for your needs before committing to a rental listing.

HyreCar vehicles are all approved for use with the Lyft and Uber platforms. However, as a new driver, you’ll still need to go through a separate verification process involving a background check. This is usually completed within 48 hours.

You can check out the HyreCar website to learn more and to apply to rent a vehicle for your rideshare business.

Bluevine: Best Credit Line for Recurring Expenses & Emergencies

Why We Like Bluevine

With a Bluevine small business line of credit, you can draw funds on an as-needed basis up to your assigned credit limit. This flexibility makes it our pick for covering recurring or unexpected short-term expenses.

While both Clarify Capital and Lendio also offer business lines of credit, Bluevine stands out for its low starting rates and quick approval and disbursement processes. It’s important to note, however, that the interest rate provided is expressed as a simple interest rate and assumes you draw the full amount of your credit line, making payments for the maximum amount of time allowed. In other words, if you pay off your balance more quickly, you could effectively end up paying even less in interest charges.

The standard repayment option on a Bluevine credit line requires you to make weekly payments. A monthly option is also available, but that requires your business to meet stricter eligibility criteria.

To learn more and to apply, you can visit the Bluevine website.

Clarify Capital: Best for Low Rates & Multiple Loan Options

Why We Like Clarify Capital

Clarify Capital stands out as our top pick for low rates and multiple loan options since it offers some of the lowest rates in this guide, depending on your qualifications. It also has various types of loans specific to your business needs.

As a loan broker with over 75 lenders in its network, this can be beneficial to you as a borrower because it means you’ll have more chances to get matched with a lender willing to issue you funding. However, one common downside of working with a loan broker is that you may not know the exact loan terms and eligibility criteria until after you apply.

Fortunately, Clarify Capital offers a quick online application with the ability to show you loan options within 24 hours. When you work with it, a dedicated loan advisor will help you with this process, saving you time from having to apply to multiple lenders separately. Head over to the Clarify Capital website for more information.

Lendio: Best for Large Financing Needs

Why We Like Lendio

If you’re in need of a large loan, we chose Lendio as our best pick since it offers one of the highest funding amounts on our list. While SMB Compass also offers financing in the same amount, Lendio can provide more loan options from a variety of lenders. This amount of financing is available on Lendio’s equipment financing and short-term loan products.

Like Clarify Capital, Lendio is a loan broker with over 75 lenders in its network. With more chances to get approved, it’s a good choice if you’ve had trouble getting financing elsewhere—just keep in mind that specific qualifications will vary depending on the loan type.

To learn more or to apply, you can visit the Lendio website. There, you can complete an online application in under 10 minutes and receive a decision within 24 hours, although it may depend on the specific type of loan you’re getting.

SMB Compass: Best for Long-term Equipment Financing

Why We Like SMB Compass

SMB Compass is an excellent option for rideshare owners needing long-term equipment financing. For this reason, we deem it the best option for long repayment terms within this guide. While Lendio offers the same maximum financing amount, SMB Compass offers lower starting interest rates.

Borrowers can use equipment financing for nearly any business-related equipment. Common examples can include vehicles, furniture, fixtures, and other items. Depending on your qualifications, it’s also possible to qualify with no down payment required.

Other loan programs offered by SMB Compass include business lines of credit, asset-based loans, SBA loans, bridge loans, and business term loans, so there’s a variety of lending options depending on your business needs.

Visit the SMB Compass website to learn more or to submit an application.

LightStream: Best Business Auto Loans for New or Used Vehicles

Why We Like LightStream

LightStream can be a great option for rideshare business owners looking to purchase a new or used vehicle, as it has various financing options. However, its auto loans require you to have good to excellent credit, so we recommend it for borrowers with a strong credit history.

With that being said, LightStream’s assessment of your credit will take more than just your score into consideration. It can also evaluate things like the length of your credit history, the number and types of accounts you have experience with, the number of accounts with a balance, and your recent applications for credit.

Depending on your qualifications, it’s possible to get approved with no down payment required. The company also does not charge any fees or prepayment penalties, so you’ll have the option of saving money on interest charges with an early payoff, along with potential rate discounts if you enroll in autopay.

To apply, visit the LightStream website where an online application can be completed in under 10 minutes and you can get a quick lending decision.

U.S. Bank Business Triple Cash Rewards World Elite Mastercard^®: Best Business Credit Card for Fuel Purchases

Why We Like U.S. Bank Business Triple Cash Rewards World Elite Mastercard^®

The U.S. Bank Business Triple Cash Rewards World Elite Mastercard^® gives a high percentage of cash back for fuel purchases and other daily business expense categories. This makes it a good option for general business expenses as it can reduce the effective cost of running your rideshare company.

You’ll receive 1% cash back on all eligible net purchases, but certain categories will earn a greater percentage:

• 3% cash back on eligible purchases at gas stations and EV charging stations
• 3% cash back on eligible purchases at restaurants, office supply stores, and cell phone service providers
• 5% cash back on prepaid hotels and car rentals booked directly in the Travel Rewards Center

The card carries a $0 annual fee, and you’ll also get certain protections when you use the card for your purchases. Some examples include car rental coverage, purchase protection, and extended warranty.

U.S. Bank Business Altitude™ Connect World Elite Mastercard®: Best for Welcome Offer & Travel Rewards

Why We Like U.S. Bank Business Altitude™ Connect World Elite Mastercard^®

If you anticipate a large amount of spending in the upcoming months, the U.S. Bank Business Altitude™ Connect World Elite Mastercard^® can be a good option. This is because as a limited-time offer, you can earn 60,000 bonus points—equivalent to $600 in cash back—when you spend at least $6,000 within 180 days of card ownership.

While the card does carry a $95 annual fee, cardholders can get a $0 introductory annual fee for the first year. Additionally, you can earn reward points on purchases. You earn 1× points on all eligible spending, with additional points for certain spending categories as follows:

• 5× points on prepaid hotels and car rentals booked directly in the Rewards Center
• 4× points on travel, gas, and EV charging stations on the first $150,000 in combined annual spend
• 2× points on dining, takeout, restaurant delivery, and cell service providers

Other benefits include the ability to get airport lounge access and earn a $25 statement credit on every three consecutive monthly taxi or rideshare trips.

How We Chose the Best Loans for Funding Your Rideshare Business

There were different types of financing options that we selected, including car rentals, loans, and credit cards. We focused on the following criteria in selecting the best providers:

• Minimum car rental period
• Fees charges for car rentals
• Mileage allowance for car rentals
• Car maintenance, insurance, and roadside assistance provided
• Interest rates and fees charged
• Loan terms
• Qualification requirements
• Speed of application, approval, and funding processes
• Customer reviews

Rideshare Expenses You Should Consider

As a rideshare business, acquiring a vehicle is just one of many types of expenses. To avoid any surprises, here are a few other costs you should consider:

• Auto loan or rental fees
• Meals (including drinks and snacks for passengers)
• Fuel
• Phone service
• Car repairs and maintenance
• Auto insurance premiums with rideshare add-on
• Roadside assistance
• Car wash and detailing services

How to Qualify for a Business Loan

If you decide to pursue a business loan to finance your ridesharing business, you should ensure you meet the minimum qualification requirements, and eligibility criteria can vary depending on the loan type and lender. Here are some common factors that will be taken into consideration on your loan application:

• Credit score: Most lenders will want to see a strong credit score before issuing financing. Generally, a credit score above 680 will give you better odds of approval. However, you’ll still have plenty of loan options with bad credit if your score is less than ideal.
• Revenue: To ensure you can repay the loan, lenders often have a minimum annual revenue requirement to help mitigate risk in the event of default.
• Down payment: Depending on the type of loan or lender, some loans have a minimum down payment requirement that can range anywhere from 10% to 20%. This is most commonly required for new car loans, but you may be able to negotiate loan terms.
• Time in business: To further mitigate risk, lenders will also take into consideration how long you’ve been in business. Since startups tend to have a high failure rate, lenders consider startup businesses with less than two years’ history to be higher risk. Loans are available for startups but may carry higher rates and fees.

Alternatives to Uber & Lyft Vehicle Financing

• Equipment financing: Whether it be via a loan or lease, equipment financing can help you acquire a vehicle or other form of equipment for your business. Depending on your business needs, you can purchase the asset and assume ownership at the end of the loan term or opt for a lease if you only need the asset for a certain period. For our top picks, check out our roundup of the best equipment financing companies.
• Personal loan: If you don’t qualify for a small business loan but have good personal credit, you may be eligible for a personal loan. Generally, there are little to no restrictions as to how you can use the funds, so you can use loan proceeds to finance your business if you are otherwise unable to obtain business financing. For more information, check out our article on the best personal loans for business funding.
• Home Equity Line of Credit (HELOC): This is a personal line of credit based on the value of your owned home. As a revolving credit facility, it can be used to pay business expenses on an as-needed basis, where the balance can be repaid over time. Funds have limited restrictions and can be requested via a draw, where the lender will place the funds into your account of choice. To learn more, read our guide on using a HELOC for business.

Frequently Asked Questions (FAQs)

Can Uber give you a car to drive?

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What are the requirements to rent a car for a rideshare business?

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Can an Uber driver apply for an SBA loan?

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Bottom Line

Funding your rideshare business comes with plenty of options. If you’re looking to rent a car, you can use Uber or Lyft vehicle financing. Depending on your needs, you can also opt for financing via a lender. The best type of loan will depend on what you plan on doing with the funds, whether it is acquiring a new vehicle or covering operational costs. To ensure you’re getting the best loan for your needs, we recommend shopping rates with different companies before making any final decisions.