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Old 13th May 2016, 04:00   #106
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Default Re: How much money does an Uber / Ola driver make?

It seems like this is another bubble waiting to burst, however in the interim if it does manage to improve the lives of a few deserving people then no complaints.

Cab drivers making more than most of the IT professionals would be painful to digest at first but then you have really thank Uber and Ola who made this possible. 10 years back if someone told you that your neighborhood autowallah earns same as a white collared techie you would have certainly thought the person had lost his marbles.
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Old 13th May 2016, 06:35   #107
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Default Re: How much money does an Uber / Ola driver make?

I keep talking to the UBER drivers every time I use one.

The gist of their lives and finances appears to be as follows;

Driving Lives: and Earnings:
Typically, the drivers say, they do about 15 rides a day, of varying lengths. The typical average they need to earn is Rs 400 per ride. In places like Bangalore, with the surge pricing and peak traffic and horrible roads, the time taken for each ride is generally higher than in other places. Hence the average price per ride tends to also go up.

Their driving around, typically takes up around 18 hours of their time with some snatches of sleep now and then. Perhaps they get to rest for about 6 hours a day, maybe a little more if they are very tired.

Most often they eat on the go, sleep on the go and use the "facilities" on the go. Some of them get to go home only in case a ride takes them towards their homes. Else they pretty much inhabit their cars. Those that I talked to, told me that most of them work 29 to 30 days a month out of Economic necessity. Maybe they take a day off occasionally for family matters in case they are married. If they are bachelors then they work pretty much throughout.

Apparently this 15 rides is the "Break Even" target given them by UBER. These 15 rides earn them approx Rs 6000 per day.

Direct First Level Costs:
UBER takes away 30% of this. So we have around Rs 2000 gone straightaway.
They spend typically around 1500 per day on Diesel.
They are then left with about Rs 2500.

Working 30 Days a month, the nett earnings of these Taxi Drivers = Rs 75000 per month. Sometimes more and sometimes less.

Other General Costs:
The guys drive mostly Toyota Etios cars. The loans that they repay to Toyota cause them to pay an EMI of around 18000 per month. (3 to 4 year loan). They have an annual road tax payment due of about Rs 45000.

They need to pay for various permits including the famous All India Permit and parking, tolls etc etc.

Maintenance and servicing of the vehicle happens once every 5000 kms and can cost as much as Rs 8000/- even though it is done at Toyota under the Toyota Maintenance Package which is sold along with the car.

Approx every 40000 kms they need to change the tyres, maybe look at their suspension and shocks etc as well. Say another Rs 12000/-. Don't forget the "hidden cost" of wear and tear and depreciation too.

UBER provides a Mobile Phone along with the GPS system etc, for which they need to pay a rental of Rs 700 per week.

These costs mentioned above need to be paid out of their earnings, in case the Driver is an Owner-Driver.

After all this comes the business of "Living" and the costs associated with that.
Shelter, Family, Food, Education, Clothing etc etc etc. (On an Aside, places like the Amma Canteen in Chennai, must come as a real boon for these poor cab drivers where they can get some decent grub at cheap prices!)

Some of the Drivers work for someone else who owns the car and get paid a salary of Rs 20,000 per month. (By contrast if one employs a personal chauffeur, the present going rate for Salary is about Rs 15000/- + some food + if you're kind, some clothes and other stuff, in exchange for long jobless hours spent lurking in the car blasting music and draining the battery + flexi hours because a private driver generally is always on call.)

It may seem at first sight that Rs 75000 per month is a fine level of earning for a Taxicab driver who has perhaps studied upto his 10th or 12th. Yes. It is in some sense, true.

Other questions spring to mind. The Driver is a Businessman / Service Provider. Doesn't he have to pay taxes and file returns? If yes, then there will be both TDS component and Service Tax and Cess. Technically, yes, he should be registered with Service Tax and should be filing Returns and paying taxes as a Businessman. If one knocks off around 25% towards the TDS and Service Tax, the earnings come right down from Rs 75000 to perhaps Rs 55000 per month.
Thinking about it, in case there is no Tax being paid and no way of the Government being able to levy these taxes on Income, then there is a massive financial leakage from the Government's perspective. It is a thought for sure!

But consider the flip side and the sacrifices that the man has to make and the stress that he undergoes day after day, especially in traffic like ours in Bangalore!

An working Joe who is starting out may make Rs 5 to Rs 9 Lacs depending on the level. But he gets to sit in an AC Office, Free Internet, Canteen and so on. Fixed timings, goes home every evening and sleeps or watches TV etc. Weekends off, spent watching movies and visiting Malls etc. Very little physical labour and stress when considering what an UBER Driver goes through.

Given the above, do people still want to swap places with the UBER Driver?

Im not sure!

Last edited by shankar.balan : 13th May 2016 at 07:02.
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Old 2nd June 2016, 18:56   #108
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Default Re: How much money does an Uber / Ola driver make?

Took an Uber yesterday from work. Started chatting with driver on the earning's etc.He showed me a msg from UBER where upon completion of (I think 12-15) trips he gets to earn 12K. Conditions attached No Cancelllations from the driver end and No complaints from the passenger.All cash payments UBER gets 20%, Didn't inquire about PAYTM as I had reached home.
There were various incentive slabs in the msg and I asked him about the highest number of trips he has done in 24 hours.
As per him its easy to complete 8-10 trips in a day without being overburdened which earned him 8K approx.
If I do the math 8000*22= 176000
Makes me rethink what am I doing??

Last edited by bblost : 2nd June 2016 at 19:41. Reason: No foul language also means no *********** to convey the same. Thanks.
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Old 2nd June 2016, 19:40   #109
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Default Re: How much money does an Uber / Ola driver make?

Quote:
Originally Posted by Arkanile View Post
As per him its easy to complete 8-10 trips in a day without being overburdened which earned him 8K approx.
If I do the math 8000*22= 176000
Makes me rethink what am I doing??
Why should you just take the revenue and not consider a single penny of expenses to earn that revenue? Then you compare that gross revenue and think about what you are doing?

Diesel is not free, his car is not free. Maintenance is not free. Food is not free. Tea/Coffee is not free. He has to pay all that from this revenue.
And because the revenue is directly linked to the number of hours on the job, even his sleep costs his.

Just one post above you, Shankar Balan has laid out the details in a very comprehensive manner. Please go through that.
You will be pleased with "what you are doing"

EDIT: Ever tried calculating the income for a rickshaw driver? I did that years back, when I had just started working (12 years back at the least).
Started chatting to a Mumbai Rickshaw driver and, though I do not remember all the details, I do remember it working out to some 25-30k a month.

I had the same thought as you think right now, "what am I doing?" earning 1/3rd of that figure.
But what most people do not consider is the opportunity to earn more over a period of time, which we salaried class people enjoy. Our number of years on the job holds a lot of weight while negotiating our salaries. But for them, it is more or less the same. Unless they start their own fleet and employ drivers, they do not have the luxury of annual appraisals, jobs shifts @ higher salaries. It remains stagnant. We do not pay extra to drivers with, lets say, more than 5 years of experience. No?

Last edited by vinit.merchant : 2nd June 2016 at 19:58. Reason: Quoted post has been edited.
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Old 2nd June 2016, 21:37   #110
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Default Re: How much money does an Uber / Ola driver make?

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Originally Posted by vinit.merchant View Post
We do not pay extra to drivers with, lets say, more than 5 years of experience. No?
Absolutely agreed, however have a different perspective to it which is completely off topic so will leave it at that

On a different note one of my friends bought a Wagon R in Mumbai and got it aligned with OLA, he has already recovered the cost (it was a second hand car) and the car is able to pay for its expenses-fuel, driver salary,maitenance, parking etc and he gets 15-20K saved each month
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Old 14th June 2016, 03:11   #111
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Default Re: How much money does an Uber / Ola driver make?

Hi Guys,

I am planning to buy a Swift Dzire and attach it with OLA and Uber. I contacted both and have understood that if we are able to make 8 trips a day than i could get a revenue of approx 1.1L. I am planning to hire a driver. I also have a partner who is interested in investing in this. If things work out we may build a fleet. What do you guys think about it.
Just to let you know I am a working professional and will not quit even if we are able to build a fleet.
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Old 14th June 2016, 10:30   #112
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Default Re: How much money does an Uber / Ola driver make?

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Originally Posted by nik0502 View Post
Hi Guys,

I am planning to buy a Swift Dzire and attach it with OLA and Uber. I contacted both and have understood that if we are able to make 8 trips a day than i could get a revenue of approx 1.1L. I am planning to hire a driver. I also have a partner who is interested in investing in this. If things work out we may build a fleet. What do you guys think about it.
Just to let you know I am a working professional and will not quit even if we are able to build a fleet.
Hello Nik,

Good Plan, look very well on the paper, just one word of caution, before very very careful while selecting the driver. It will be basically upto the driver to make you earn money as well keep the car intact. I have seen any people attaching their vehicle in Uber while they are working in corporates.

Best of Luck

Amit
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Old 14th June 2016, 10:51   #113
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Default Re: How much money does an Uber / Ola driver make?

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Originally Posted by nik0502 View Post
I am planning to buy a Swift Dzire and attach it with OLA and Uber. I am planning to hire a driver.
I have myself thought of doing this number of times but you also need to consider that there could be accidents and the owner needs to go to the police station in such cases. I am not trying to dampen your spirits but since you said you are a working professional, this could be a little difficult though there are high chances that it might not happen at all as well. So do take into consideration all the pros and cons before deciding, even the extreme ones just to be sure that everything is covered
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Old 14th June 2016, 12:17   #114
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Quote:
Originally Posted by amitpunjani View Post
Hello Nik,

Good Plan, look very well on the paper, just one word of caution, before very very careful while selecting the driver. It will be basically upto the driver to make you earn money as well keep the car intact. I have seen any people attaching their vehicle in Uber while they are working in corporates.

Best of Luck

Amit
Hi Amit,

I know two drivers personally. One was a cab driver in my previous company. He is one driver who wouldn't drive above 60 even if you scream at him, however the vab which he used to drive was wery well maintained even after crossibg 2.5 lacs. The other option I have is my neighbour's driver. Who is also very sedate driver. Drives for an old man. The car he drives doesn't have even a single scratch. It's a 2009 i10. I am aware that I have to be super cautious about driver. The only sad part is these companies don't give an option of tracking y Iur car real time so that you co u ld do surprise checks.





Quote:
Originally Posted by centaur View Post
I have myself thought of doing this number of times but you also need to consider that there could be accidents and the owner needs to go to the police station in such cases. I am not trying to dampen your spirits but since you said you are a working professional, this could be a little difficult though there are high chances that it might not happen at all as well. So do take into consideration all the pros and cons before deciding, even the extreme ones just to be sure that everything is covered
Hey,

Thanks for the advice buddy. I have given it a thought. So I know the risk involved, however I still think it's worth the risk if the profit is same as these guys guys are advertising. Moreover I have a partner and moreover we start our day at work when most of you guys finish yours. So I agree it will be tedious to deal with in such situations but will be doable. Also we plan to register as a firn if our first car is successful. That would reduce the liability on an individual to some extent.

What I am looking for here is the hidden terms which they are not discliing right now and I might come to know after burning my hands. So anyone who has first hand experience if could share their thoughts would be great.
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Old 14th June 2016, 12:47   #115
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Default Re: How much money does an Uber / Ola driver make?

Quote:
Originally Posted by nik0502 View Post
Hi Guys,

I am planning to buy a Swift Dzire and attach it with OLA and Uber. I contacted both and have understood that if we are able to make 8 trips a day than i could get a revenue of approx 1.1L. I am planning to hire a driver. I also have a partner who is interested in investing in this. If things work out we may build a fleet. What do you guys think about it.
Just to let you know I am a working professional and will not quit even if we are able to build a fleet.
IMO these drivers will not last long with you. Anyone who is ready to drive continuously (v/s a regular driver who gets loads of free time) will take a few months of salary and buy their own vehicle on loan and make that 1.1L for themselves. You will face various challenges.
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Old 14th June 2016, 18:49   #116
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Default Re: How much money does an Uber / Ola driver make?

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Originally Posted by nik0502 View Post
Hi Guys,

I am planning to buy a Swift Dzire and attach it with OLA and Uber. I contacted both and have understood that if we are able to make 8 trips a day than i could get a revenue of approx 1.1L. .
8 trips a day equals 240 trips a month (assuming no holidays at all for the driver)

To have a revenue of 1.1L to the owner, the average revenue per trip needs to be approx 500. Will need to be much more if you include commission to Uber/Ola. Doesn't look realistic, even with surge pricing.
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Old 14th June 2016, 23:48   #117
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Default Re: How much money does an Uber / Ola driver make?

Quote:
Originally Posted by nik0502 View Post
Hi Amit,

I know two drivers personally. One was a cab driver in my previous company. He is one driver who wouldn't drive above 60 even if you scream at him, however the vab which he used to drive was wery well maintained even after crossibg 2.5 lacs. The other option I have is my neighbour's driver. Who is also very sedate driver. Drives for an old man. The car he drives doesn't have even a single scratch. It's a 2009 i10. I am aware that I have to be super cautious about driver. The only sad part is these companies don't give an option of tracking y Iur car real time so that you co u ld do surprise checks.







Hey,

Thanks for the advice buddy. I have given it a thought. So I know the risk involved, however I still think it's worth the risk if the profit is same as these guys guys are advertising. Moreover I have a partner and moreover we start our day at work when most of you guys finish yours. So I agree it will be tedious to deal with in such situations but will be doable. Also we plan to register as a firn if our first car is successful. That would reduce the liability on an individual to some extent.

What I am looking for here is the hidden terms which they are not discliing right now and I might come to know after burning my hands. So anyone who has first hand experience if could share their thoughts would be great.
Buddy, I think you are well aware of the risk and have a good team. Just go on!!

It's not difficult for a honest and hard working driver to get 8 duties/day. Make sure you tell him, few tricks of the trade like never to wait in residential areas at evening times, be around offices etc etc.

I would suggest pay him incentive per duty and overtime, you both will be happy.

There will be always pros and cons, listen to your heart and go on!
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Old 15th June 2016, 00:27   #118
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Default Re: How much money does an Uber / Ola driver make?

Quote:
Originally Posted by nik0502 View Post
Hi Guys,

I am planning to buy a Swift Dzire and attach it with OLA and Uber. I contacted both and have understood that if we are able to make 8 trips a day than i could get a revenue of approx 1.1L. I am planning to hire a driver. I also have a partner who is interested in investing in this. If things work out we may build a fleet. What do you guys think about it.
Just to let you know I am a working professional and will not quit even if we are able to build a fleet.
Why not hire 2 drivers to drive in shifts? That way your car will be on the road longer (say 16-18 hrs/day) and make you more money. If you have loyal sensible drivers, half your troubles are already gone!!
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Old 15th June 2016, 01:41   #119
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Default Re: How much money does an Uber / Ola driver make?

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Originally Posted by TD_GHY View Post
8 trips a day equals 240 trips a month (assuming no holidays at all for the driver)

To have a revenue of 1.1L to the owner, the average revenue per trip needs to be approx 500. Will need to be much more if you include commission to Uber/Ola. Doesn't look realistic, even with surge pricing.
Hey,

If you complete 8 trips in a day there is a minimum guarantee of 650/trip by OLA and 4500 flat on uber for 7 trips. I think that is good enough.

Quote:
Originally Posted by amitpunjani View Post
Buddy, I think you are well aware of the risk and have a good team. Just go on!!

It's not difficult for a honest and hard working driver to get 8 duties/day. Make sure you tell him, few tricks of the trade like never to wait in residential areas at evening times, be around offices etc etc.

I would suggest pay him incentive per duty and overtime, you both will be happy.

There will be always pros and cons, listen to your heart and go on!
Thanks for the encouragement,

Yes we will have the incentives for the driver. For completing 8 trips we should be paying him 200 a day. And yes we have identified few locations like airport and railway stations for early morning trips, Offices for Morning and evening, and Places like pubs for late night trips.

Quote:
Originally Posted by Dry Ice View Post
Why not hire 2 drivers to drive in shifts? That way your car will be on the road longer (say 16-18 hrs/day) and make you more money. If you have loyal sensible drivers, half your troubles are already gone!!
Hey Dry Ice,

Yes, the plan is to have two drivers however would want to stick to one for first one month. The idea is to pay higher incentives to the driver who work during the night shifts.
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Old 15th June 2016, 07:23   #120
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Default Re: How much money does an Uber / Ola driver make?

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Hey,

If you complete 8 trips in a day there is a minimum guarantee of 650/trip by OLA and 4500 flat on uber for 7 trips. I think that is good enough.
Standard logical revenue model can't justify a guarantee of 650/trip. So definitely a case of investor cash burning to get more cars on board. Make hay while the sun still shines. Good luck then.

Do share your experiences in this forum. Will help folks like me who want to do the same, albeit a little late, probably by next year.
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