Uber & Lyft Financing: 8 Best Ways to Fund Your Rideshare Business
This article is part of a larger series on Business Financing.
The best ways to fund your rideshare business will give you competitive pricing and flexibility when it comes to contractual commitments. 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.
Funding a rideshare business can involve the need to purchase or rent a vehicle. It can also mean needing to cover daily expenses, such as fuel and other operational costs.
Here are our eight 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 and unexpected expenses
- Clarify Capital: Best for low rates and multiple loan options
- Lendio: Best for large financing needs
- 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
Best Ways to Fund Your Rideshare Business At a Glance
Financing Type | Maximum Loan Amount | Estimated Annual Percentage Rate (APR) | Fees | Minimum Credit Score | Maximum Repayment Term | |
|---|---|---|---|---|---|---|
 | Car rental | N/A | N/A | $260 per week; can vary | None | Hourly, weekly |
 | Car rental | N/A | N/A | $174 per week; can vary | None | 1-week minimum |
 | Car rental | N/A | N/A | $250 per week; can vary | None | 2-day minimum |
 | Line of credit | $250,000 | 6.2% | None | 625 | 12 months |
 | Varies | $750,000 | 6% | Varies | 550 | Varies |
 | Varies | $5 million | 6% | Varies | 560 | 10 years |
 | Auto loan | $100,000 | 8.99% | None | 680 | 7 years |
 Business Triple Cash Rewards World Elite Mastercard® | Credit card | Varies | Varies | Varies | Varies | Revolving |
Uber Marketplace: Best Flexible Car Rental Terms for Uber Drivers
| |
Rates & Terms | |
Approval Speed | 3 to 10 days |
Rental Period Options | Hourly and weekly |
Fees | $260 per week and up |
Maintenance Plan Provided | Basic maintenance covered |
Insurance/Roadside Assistance | Insurance and 24/7 roadside assistance provided |
Mileage Restrictions | Varies |
Qualifications | |
Minimum Age | 21, but may vary by rental company |
Geographic Availability | Varies by rental company |
Credit Score | None |
Time in Business | None |
Why We Like Uber
When you rent a car with Uber, there’s no minimum period you’re required to keep it. This makes it the most flexible out of the car rental services we selected. Uber partners with several rental companies, including Avis, Hertz, Kinto, and Getaround. Each has its own minimum requirements to be eligible to rent a car, but you’ll need to have a valid driver’s license along with at least one year of driving experience. If you’re under the age of 25, you’ll need three years of driving experience.
While Uber’s starting rates to rent a vehicle are higher than the other two rental car companies we’ve selected, Uber provides an online tool to show what you could earn to offset the added costs. This data is based on the median earnings of drivers in your area from the prior month, and you can use the data to determine if it’s worth the expense. For example, it estimates that a driver in Dallas-Fort Worth, Texas, could earn approximately $1,113 per week by driving 50 hours.
With Uber financing, you should also know that the company does provide basic maintenance, insurance coverage, and roadside assistance. This can reduce the effective cost of operating your rideshare business.
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
| |
Rates & Terms | |
Approval Speed | 2 to 10 days |
Rental Period Options | 1-week minimum |
Fees | $174 per week and up but can vary by location |
Maintenance Plan Provided | Yes |
Insurance/Roadside Assistance | Insurance and roadside assistance provided |
Mileage Restrictions | None |
Qualifications | |
Minimum Age | 25 |
Geographic Availability | Approximately 40-plus select cities |
Credit Score | None |
Time in Business | None |
Why We Like Lyft
With Lyft Express Drive, you can rent a vehicle as a rideshare driver on the Lyft platform. Car rental rates fluctuate year round and will also vary depending on your location. As of this writing, we found rates as low as $174 per week for the Dallas, Texas area. That’s the lowest out of the three car rental companies we selected in this guide, so it’s a good choice if you’re looking for an affordable option.
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 United States. You can see the full list on Lyft’s website.
If you decide to rent a vehicle with Express Drive, you’ll need to complete at least 20 rides per week to be considered in good standing to have the ability to renew your rental. The only stated exception to this policy is for your first week on the platform, which will be prorated. Drivers will also have to pay a refundable deposit to rent a vehicle, which will be returned within three weeks of returning the car.
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. Visit the Lyft website to learn more or to apply for the program.
HyreCar: Best Ridesharing Rentals for Low-mileage Drivers
| |
Rates & Terms | |
Approval Speed | 2 to 5 days |
Rental Period Options | Daily, weekly, and monthly (2-day minimum) |
Fees | $250 per week, but may vary |
Maintenance Plan Provided | N/A; covered by vehicle owner |
Insurance/Roadside Assistance | Insurance and roadside assistance provided |
Mileage Restrictions | 250 to 1,000 miles per day |
Qualifications | |
Minimum Age | 21 |
Geographic Availability | All 50 states |
Credit Score | None |
Time in Business | None |
Why We Like HyreCar
Unlike many other car rental providers, HyreCar stands apart because it has nationwide availability. However, it does impose a daily limit between 250 and 1,000 miles, making this a more ideal fit for part-time or low-mileage rideshare drivers.
When you rent a car on HyreCar, 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 & Unexpected Expenses
| |
Rates & Terms | |
Application Speed | 5 minutes |
Approval Speed | As fast as 5 minutes |
Funding Speed | 24 hours |
Loan Amount | Up to $250,000 |
Estimated APR | 6.2% to 78% |
Repayment Term | 12 months |
Financing Type | Line of credit |
Qualifications | |
Credit Score | 625 |
Time in Business | 24 months |
Revenue | $480,000 |
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 a good option for covering recurring or unexpected short-term expenses.
Bluevine’s rates start as low as 6.2% for well-qualified businesses. It’s important to note, however, that the rate 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. You’ll need a credit score of 700, at least three years’ time in business, and annual revenue of $960,000.
To learn more and to apply, you can visit the Bluevine website.
Clarify Capital: Best for Low Rates & Multiple Loan Options
 | |
Rates & Terms | |
Application Speed | 2 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 to 48 hours |
Loan Amount | Up to $750,000 |
Estimated APR | 6% and up but varies based on loan type |
Repayment Term | Varies |
Financing Type | Term loan, line of credit, and equipment financing |
Qualifications | |
Credit Score | 550 but may vary based on loan type |
Time in Business | 6 months but may vary based on loan type |
Revenue | $120,000 annually but may vary |
Why We Like Clarify Capital
Depending on your business qualifications, Clarify Capital can offer some of the lowest rates compared to the other companies on our list. You’ll also have the benefit of choosing from different types of loans depending on the specific type of business expense you’re looking to cover.
Clarify Capital is 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. When you work with Clarify Capital, a dedicated loan advisor will help you with this process, saving you time from having to apply to multiple lenders separately.
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. Head over to the Clarify Capital website for more information.
Lendio: Best for Large Financing Needs
| |
Rates & Terms | |
Application Speed | 10 minutes |
Approval Speed | 24 to 72 hours |
Funding Speed |
|
Loan Amount |
|
Estimated APR |
|
Repayment Term |
|
Financing Type | Term loan, line of credit, and equipment financing |
Qualifications | |
Credit Score |
|
Time in Business |
|
Revenue |
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Why We Like Lendio
If you’re in need of a large loan, Lendio offers funding as high as $5 million, which is the most out of the companies in our guide. This amount of financing is available on Lendio’s equipment financing loan product. Other types of loans are also available, including credit lines and business term loans.
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 to consider if you’ve had trouble getting financing elsewhere.
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.
LightStream: Best Business Auto Loans for New or Used Vehicles
| |
Rates & Terms | |
Application Speed | 10 minutes |
Approval Speed | 24 hours |
Funding Speed | 24 hours |
Loan Amount | $5,000 to $100,000 |
Estimated APR | 8.99% and up |
Repayment Term | 3 to 7 years |
Financing Type | New and used cars |
Qualifications | |
Credit Score | 680 is recommended |
Time in Business | None |
Revenue | Varies |
Why We Like LightStream
LightStream can be a great option for rideshare business owners looking to purchase a new or used vehicle. Its auto loans require you to have good to excellent credit, so we’ve recommended a minimum credit score of 680 or higher.
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.
To apply, visit the LightStream website where an online application can be completed in under 10 minutes.
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®: Best Business Credit Card for Fuel Purchases
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
BEST FOR:
0% APR for 15 billing cycles
Intro APR
Regular APR
19.24% - 28.24% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
- Earn $500 in cash back. Just spend $4500 on the Account Owner's card in the first 150 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 19.24% - 28.24%.
- No annual fee.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
- Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
Intro APR
Regular APR
19.24% - 28.24% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
- Earn $500 in cash back. Just spend $4500 on the Account Owner's card in the first 150 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 19.24% - 28.24%.
- No annual fee.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
- Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
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 purchases, but certain categories will earn a greater percentage:
- 3% cash back at any gas station
- 3% cash back on dining, office supplies, and mobile phone services
- 5% cash back on prepaid hotels and car rentals booked directly in the Travel Rewards Center
The card carries no 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. You can learn more through our U.S. Bank Business Triple Cash Rewards World Elite Mastercard® review.
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/snacks for passengers)
- Fuel
- Phone service
- Car repairs and maintenance
- Auto insurance premiums with rideshare add-on
- Roadside assistance
- Car wash/detailing services
How To Qualify for a Business Loan
You’ll need to check the eligibility requirements and ensure you qualify. This can vary depending on the type of loan and the lender. However, lenders commonly look at the following:
- Credit score: If you have a credit score above 680, you should have an easy time getting approved. However, you’ll still have plenty of loan options with bad credit.
- Revenue: Some lenders have a minimum requirement for annual business revenue. This is often used to determine your ability to repay the loan.
- Down payment: Certain loans will require a minimum down payment as a condition of issuing loan proceeds. This is common for new car loans and can commonly range from 10% to 20%.
- Time in business: Startups have a high failure rate, so 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.
Our guide on how to get a small business loan will walk you through the process. It also contains a few things you can expect after applying.
Bottom Line
There are many financing options available to you for funding your rideshare business. 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 make sure you’re getting the best loan for your needs, we recommend shopping rates with different companies before making any final decisions.
