Driver Compensation

Bluecar Compensation Plan – Effective 10/15/2018
COMPENSATION PLAN


When you extend your independent driving service into the on demand marketplace through Bluecar, you are making your company more powerful by joining forces with other exceptional independent companies like yours to form a highly accessible network of professionals. The face of transportation has changed. And today’s consumers are choosing networks they can tap into nationwide with the touch of a button. Not only are we committed to creating world-class technology that accommodates the way consumers now do business, we are also committed to maintaining your business autonomy, brand identity, and providing an exceptional opportunity for Drivers like you to extend your own independent driving services into the on demand marketplace. Towards that end the outstanding Compensation Plan is designed so that Drivers like you have the opportunity to earn income by the following means:

  1. selling your own transportation service on demand through the Bluecar platform

  2. building a following of riders interested in your service

  3. developing a local reputation leading to repeat and referral customers

  4. claiming a revenue-share in the business of riders who were introduced to Bluecar through your referral.

 

Those opportunities – combined with the entrepreneurship of each independent driver – are the foundation of the Bluecar model. Whatever your reason for bringing your company into the on demand marketplace, it is our sincere desire that you succeed. Your success and satisfaction are at the heart of our success.

 

COMPENSATION PLAN CONTENTS

CHAPTER 1:   OVERVIEW OF THE COMPENSATION PLAN

CHAPTER 2:   TRIP EARNINGS

CHAPTER 3:   REVENUE-SHARE EARNINGS

CHAPTER 4:   INCENTIVES AND CONTESTS

CHAPTER 5:   ADDITIONAL FINANCIAL OPPORTUNITIES

 

CHAPTER 1:   OVERVIEW OF THE COMPENSATION PLAN

1.1  How Compensation is Earned
On Bluecar, compensation is earned as trips are provided to riders and as a Driver develops a growing list of referrals. Providing transportation is the foundation of a successful on demand business. Therefore, the Compensation Plan is a work plan, and your compensation will depend on how much effort you expend, your talents as a promoter, and to some extent, what area of the country you live in.   

1.2   Three Ways to Earn Income
There are three ways for Drivers to earn income with Bluecar:

  1. Driving;

  2. Revenue-Share;

  3. Incentives, Contests, and Private Placements.

In addition, Bluecar may offer exclusive opportunities as they arise to select individuals.

1.3   Eligibility to Earn Compensation
To be eligible to earn compensation from Bluecar you must provide your Social Security number or your Employer Identification Number so that we can provide your 1099-K report at the end of the year. You may provide this number at any time and will be eligible to earn compensation from that point forward. If your Driver account becomes inactive, whether by request or by a failure to keep it up to date, you may continue receiving Revenue-share earnings but will not be able to earn through driving, or performance-based contests. 


 

CHAPTER 2:   TRIP EARNINGS


2.1   Earnings from Driving
Bluecar does not yet have a way to set custom prices for various markets around the US. If you are outside of Dallas/Ft. Worth and using Bluecar, the Market Rates used in Dallas Ft. Worth will be the same as our system charges for your area as well. In the next upgrade, we will be able to set custom rates for each city and market.

Driving is the simplest way to earn income with Bluecar. As a Driver, you earn a base fee plus a per-mile fee plus a per-minute fee that is consistent with other luxury on demand services. There are slight differences in earnings depending on how many riders need transportation. As of today, your earnings table is as follows for all luxury vehicles.

  • 1-3 Riders

    • $4.50 + $1.95/mile + $0.60/minute​

  • 4 Riders

    • $6.00 + $1.95/mile + $0.60/minute​

  • 5-6 Riders

    • $9.00 + $2.25/mile + $0.75/minute​

  • 7 Riders

    • $10.50 + $2.25/mile + $0.75/minute​

 

We understand that you set your own prices in the scheduled part of your business. However, allowing custom rates on demand forces customers to compare prices while attempting to get on demand service. That can be a huge deterrent to using the platform. Having uniform prices appeals to a wider audience and enables you to earn more customers.

 

2.2  Cancellation Earnings
Riders may be charged cancellation fees if they request an on demand ride then cancel at some time after the Driver has begun moving towards the pickup site. From the time you accept an on demand request to the time the rider cancels, you will be compensated as follows:

  • 0 - 2 minutes = N/A

  • 2 - 5 minutes = $3.75

  • 5 - 10 minutes = $7.50

  • 10-15 minutes = $11.25

  • 15-20 minutes = $15.00

2.3   Minimum Earnings
Riders may also incur a minimum charge for trips that do not exceed a certain amount. For groups of up to 4 riders, the minimum is $13.50 while groups of 5 or more carry a $18.75 minimum. If the rate formula does not tally to more than those numbers, the minimum earnings will apply. In such cases, the Driver will be paid either $13.50 or $18.75 respectively.

 

2.4   Update to Minimums and Cancellations Earnings
The Minimums and Cancellations in 2.2 and 2.3 are temporary. We plan to updated them in a future upgrade to the Bluecar platform. After that feature upgrade, both minimums and cancellations will be based on the distance the driver traveled to get to the rider.

If a rider requests a ride from a Driver who is some distance away, the minimum and cancellation earnings will be calculated based on how far the Driver went to the pickup site.

Cancellations will be calculated the same way, but will be based on how far the Driver has already come prior to cancellation.

This variable cancellation and minimum fare policy will help to reduce the risk of long distance pickups and will help riders in suburban and rural areas get on demand service more reliably.

CHAPTER 3: RESIDUAL EARNINGS


3.1 Revenue-Share Earnings
When you bring a customer to Bluecar – whether someone you know already, someone you met in passing, or someone who found your referral code on social media or other sources – Bluecar gives you a Revenue-Share in that customer. Every time that customer takes a ride on Bluecar, you earn a 10% boost of the earnings above. Revenue-Shares are paid residually; i.e., a one-time effort results in a recurring payout.

As of today, your Revenue-Share table is as follows:

  • 1-3 Riders

    • $0.45 + $0.195/mile + $0.06/minute​

  • 4 Riders

    • $0.60 + $0.195/mile + $0.06/minute​

  • 5-6 Riders

    • $0.90 + $0.225/mile + $0.075/minute​

  • 7 Riders

    • $1.05​ + $0.225/mile + $0.075/minute

Minimum Revenue-Shares are $1.35 for up to 4 riders, and $1.87 for 5 or more riders. Every time one of your referred riders takes a ride anywhere in the country through any Driver on Bluecar, you will get those amounts or higher. For example, a trip where the driver earns $75 would pay you a $7.50 Revenue-Share. If you are the driver, you get both the $75 fare and the $7.50 Revenue-Sharefor a total of $82.50. 

Revenue-Shares are not paid on cancellations.

 

CHAPTER 4:   INCENTIVES AND CONTESTS


4.1   The Purpose of Incentives and Contests
Before getting into the earnings side of contests and incentives, it is beneficial to explain why they are an important part of your success through Bluecar.

 

The black car industry is one of the most segmented and fragmented industries in the world. There are tens of thousands of independent companies in the US, and the largest single company earns less than 1% of the total business of this industry. Over the past 8 years, well-funded technology companies have used the power of Unity and the Network Effect to coordinate massive assaults on this wonderful industry effectively siphoning its customers into the on demand marketplace. Large sums of people working together towards a common goal is astronomically powerful. Yet, unity and cohesion is not something the black car industry can achieve in its fragmented state, which prevents it from competing on that level. If it could, then not even the billion-dollar tech giants could compete. And that vision is what drove us to create Bluecar and choose the business model we chose.

With that said, contests and incentives are designed to create strategic, temporary unified movements of Drivers to take advantage of weaknesses and vulnerabilities in the market. The purpose of such unified movement is to enable those same Drivers to win more customers and more market share than they could have working alone. When hundreds, or even thousands of Drivers pursue business in the same way at the same time, it has the ability to attract their target audience in a way that an individual cannot. When we put out an incentive or launch a contest, it is an indication that we have identified a vulnerability in a disruptive technology company. Acting on it swiftly and aggressively will not only pay you more through the incentive or contest, but it will unlock more market share for you and your industry by loosening part of your opponents’ hold on your target customers.

4.2   Concept of Volume
Most contests will be based on a specific activity such as new user invites, driver invites, rides given, hours online, etc. The amount of the specific activity you do is called “Volume.” For the purpose of contests and incentives, volume is calculated per earnings period. Earnings periods begin on the 1st and 16th days of each month with the closing of the earnings period effective that previous night at 4am Central Time. All contests and qualifying periods for incentives will last at least one earnings period. Some will stretch as long as six or seven.

All payouts and prizes are in addition to the residual Revenue-Shares and Trip Earnings you may have acquired in the pursuit of qualifying for the incentive or contest.

CHAPTER 5: ADDITIONAL FINANCIAL OPPORTUNITIES


5.1   The Sky is the Limit
As Bluecar grows, and as we have a need to unify this industry further against external threats, we will create and structure new opportunities for Drivers. Bluecar is not like other technology companies. We are driver-founded and driver-owned. We love this industry and we are committed to strengthening it to better fight against disruption. As we earn more revenue, we will find more ways to give it back to Drivers like you through activities that lead to the stabilization and security of this industry and its clientele.

We don’t know what all of the opportunities are that we will offer. But as we analyze the market, adjust to changing conditions, improve our technology’s capabilities, and devise strategies to move in on our competitors’ vulnerabilities, you will be part of the process. Some opportunities will be short term while others will be permanent. But, by the end, Drivers like you will own this industry, and have control over it as you’ve never had before.

FOUNDER'S CONTACT

jeff@mybluecar.com

817-730-8764