Hi guys,
After trying full time uber for more than 1 month, more than 300 trips , i have concluded that it is not profitable for a car which has 1500cc and above. For smaller car such as axia, viva etc2, i am not sure but i think would be profitable. Reasons are as below:
- The rates are just to cheap and not worth it (only worth it during surge) with also minusing 25% uber fee compared to the cost you have to bear (i.e. car loan repayment, fuel, maintenance etc.). Malaysia road is full of potholes and are not friendly to heavy car users who wants to maintained their car in a good condition.I made a simple example as below:
a) I have calculated that daily (my average kilometer is 150-250km depending on location of the trips), hence my monthly mileage is more than 5,000km which comes the normal routine service each month.
b) My average weekly gross payout is approximately RM 1,000 including minimal incentives. (You do not get much if you meet the incentives quota).
Assuming in a month we have 4 weeks = RM 4,000. My estimated necessary cost in a month is as below:
1) Cost of Fuel RM 230 weekly x 4 = RM 920
2) Monthly loan repayment for car = RM 800
3) House rental and utilities = RM 500
4) Average car service cost = RM 300 (not includes any equipment or spare part changes due to wear and tear. i.e. tyre cost, suspension, brake pad, gearbox etc.)
5) Breakfast and or lunch RM 12 x 30 = RM 360
6) Touch and go RM50 weekly x 4 = RM 200
7) Monthly groceries = RM 250
8) Handphone plan = RM 100
TOTAL = RM 3,430
Please note that this cost does not include any wear and tear which eats up a lot. If your suspension is broken cost is estimate (RM500 - 1,000) depending on brand and type). Changing all tyres due to wear and tear (RM600 - 1000). Insurance and Road Tax yearly (RM 600 - 1,000)Also when more trips you made, you can see that the cushion of your sits are getting dirtier and the stiches are coming out hence you have to fork our for cleaning or clean your self.
Once you drive more and make it as a heavy duty you will see that it is less worth it to drive Uber as the rates are to cheap and not worth it. This is based on a 1,500cc cars only hence if you have lower CC car you can adjust accordingly.
My estimates at the top i try to put it at the average level which are not to high and not to low.
I have decided to do less Uber after i have seen this disadvantages. I would say that Uber makes a lot of money buy sucking it out from the Partners with the 25% fee which is ridiculously high when they do not carry the overheads:
- Own the asset. (All maintenance will be beared by Partner). Once a Partner realise this, they will not continue but new bloods will join in, hence they profit it.
- Minimum overheads. they dont even have a call centre. Only respond by email, which sometime took 1 day to respond. I have made a lot of complaints but none action was taken. They only care about the riders who rides it.
As a conclusion for me, they are abusing the partner with all this lucrative BS for us to work hard when they are gaining from all the work we do.
I would like to put more evidence but i have to continue my office work.
Unless Uber increases the fare, i dont think i will do it in a long run.
If you have any comments which you like to improve this writing is appreciated.
Thank you.
Uber Partner Resource Centre & FAQ, Partners welcomed to share!
Apr 14 2016, 03:03 PM
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