Tryp is a Ponzi scheme. They make money on signing up drivers. Their website is focused almost solely on drivers. Technically, they are a multi-level marketing company with one focus: drivers who are paying $200 a month and passengers who pay an administrative fee. Drivers must give their bank account information to Tryp and then allow Tryp to pull money out of their bank account each month.
Let's say the average ride is $20. The rider would pay $21.95 which is the $20 to the driver and $1.95 admin fee to Tryp. I crunched the numbers and if 1000 drivers in each of their top 60 markets did enough rides for the drivers to break even - meaning the drivers each made $200 in fares, Tryp would make $12.9 million.
If each driver in those markets received a 4:1 ROI on their monthly investment, meaning they brought in $800 gross, their net would be $600 after subtracting the $200 they paid to Tryp. Meanwhile, Tryp makes $48.9 Million. And here is the best part, the drivers are expected to recruit passengers, meaning the drivers are doing all the marketing to get riders.
The $0.40 commission on rides may sound like drivers will make a fortune, but in fact, most won't. A few drivers will make a lot of money, this is true. However, the platform currently has 0% market share so all drivers will struggle to get rides while Tryp still gets their money either way. So you decide.
RIDEGURU
Tryp is a Ponzi scheme. They make money on signing up drivers. Their website is focused almost solely on drivers. Technically, they are a multi-level marketing company with one focus: drivers who are paying $200 a month and passengers who pay an administrative fee. Drivers must give their bank account information to Tryp and then allow Tryp to pull money out of their bank account each month.
Let's say the average ride is $20. The rider would pay $21.95 which is the $20 to the driver and $1.95 admin fee to Tryp. I crunched the numbers and if 1000 drivers in each of their top 60 markets did enough rides for the drivers to break even - meaning the drivers each made $200 in fares, Tryp would make $12.9 million.
If each driver in those markets received a 4:1 ROI on their monthly investment, meaning they brought in $800 gross, their net would be $600 after subtracting the $200 they paid to Tryp. Meanwhile, Tryp makes $48.9 Million. And here is the best part, the drivers are expected to recruit passengers, meaning the drivers are doing all the marketing to get riders.
The $0.40 commission on rides may sound like drivers will make a fortune, but in fact, most won't. A few drivers will make a lot of money, this is true. However, the platform currently has 0% market share so all drivers will struggle to get rides while Tryp still gets their money either way. So you decide.