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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