Monday, November 23, 2015

Game of Uber

Have you taken Uber? I have. Some Uber drivers told me they can earn up to 6000 per month, one even said 10000 after deducting rental fees and so on! Does driving Uber make sense? How much can you really earn?

Let's find out.

We make the following assumptions:

Distance per trip = 15 km
Petrol cost per km = $0.23
Rental cost of car per day = $59 (from Lion City Rentals. This is their cheapest car.)
Rental cost of car per month = $59*7*4 = $1652
Cashcard cost per month = $10*7*4 = $280 (assume $10 per day)

For Uber, they have peak driving hours which is 7 - 11am on weekday mornings, 5 - 11pm on weekday nights, and 10am-10pm on weekends.

For Uber, they take a 20% cut of the gross earnings you make.

We consider three scenarios:

Scenario 1: Lazy

In this scenario, we drive only during the peak hours of 7 am to 11 am. We drive 3 hours per day on weekends.

So your PSH driven weekly will be 4*5 + 3 + 3 = 26 hours.

Assume you make 1.2 trips per hours (TPH), this qualifies you for the weekly accelerator guarantee of $18 per hour.

Total gross earnings = 18*26*4 = $1872

Fuel cost = $430.56

Uber cut = $374.40

Net earnings = 1872 - 1652 - 430.56 - 200 - 374.4 = $-784.96

Scenario 2: Relax

In this scenario, we drive during the peak hours of 7 am to 11 am, and also 5pm - 7pm. We drive 6 hours per day on weekends.

So your PSH driven weekly will be (4+2)*5 + 6 + 6 = 42 hours.

Assume you make 1.5 trips per hours (TPH), this qualifies you for the weekly accelerator guarantee of $24 per hour.

Total gross earnings = 24*42*4 = $4032

Fuel cost = $869.4

Uber cut = $806.4

Net earnings = 4032 - 1652 - 869.4 - 280 - 806.4 = $424.20

Scenario 2: Moderate

In this scenario, we drive during the peak hours of 7 am to 11 am, and also 5pm - 11pm. We drive 6 hours per day on weekends.

So your PSH driven weekly will be (4+6)*5 + 6 + 6 = 62 hours.

Assume you make 1.5 trips per hours (TPH), this qualifies you for the weekly accelerator guarantee of $25 per hour.

Total gross earnings = 25*62*4 = $6200

Fuel cost = $1283.4

Uber cut = $1240

Net earnings = 6200 - 1652 - 1283.4 - 280 - 1240 = $1744.6

Scenario 4: Extreme

In this scenario, we drive during ALL the peak hours of 7 am to 11 am, and also 5pm - 11pm. We drive 12 hours per day on weekends.

So your PSH driven weekly will be (4+6)*5 + 12 + 12 = 74 hours.

Assume you make 2 trips per hours (TPH), this qualifies you for the weekly accelerator guarantee of $36 per hour (this is the max).

Total gross earnings = 36*74*4 = $10656

Fuel cost = $2042.4

Uber cut = $2131.2

Net earnings = 10656 - 1652 - 2042.4 - 280 - 2131.2 = $4550.40

So there you have it. Even if you drive all day without seeing your family, the max you can earn is around $4550.4.

Stay tuned for our coming article on how much you can earn, if you BUY a car and not rent!