How much ola and uber drivers earn in 2016

How much does Ola / Uber drivers earn?
With the recent hype about cab drivers earning more than white collar jobs employees, It time we at MoneyDost clear the doubts.

This blog is for :-
1) People searching for a small business opportunity
2) Current drivers trying to figure out what they are actually earning

Let’s do maths😅

Assume you have saved 1.5 Lakh.
You would need 1.5 Lakh as down payment to get any decent hatchback like indica or Wagon R and set up EMI which will be 12,000 /- month.

With personal experience i can say the incentives are the real deal!
If you want to make money in this network, you need to run for the incentives
Now ola/uber provides different slabs for incentives based on number of rides which changes with time and your city
But if we sum it up for you... it keeps you running atleast for 14 to 18 hours accoring to how good the day is for you☺

With all the hard work you will put into it you will not be able to make more than 40K - 45K revenue a month (after paying for fuel cost and including all incentives).
This 45K comes from driving around 7000–8000 kms a month .

Now lets look at the Expenses

*12000 for EMI
* runming the car for 8000km per month will need all new tyres every year which costs approx 1500 per month
* 3000 for servicing
*12000-15000 for salary of driver
* approx 2000 per month in taxes
* approx 1000 per month for minor accidents

Which leaves you with just 8500 per month approximately.

Invested amount-1.5 lac
Efforts- Very high
Return Per Annum- 1,02,000

Asset buildup- 1.5-2 lac car due to high commercial usage

So Is It All About a Myth? Is ola/uber a lame deal?

Actually no! This can be turned into a decent earning business by cussting the following overheads:-

1) Drive yourself!

Just by driving yourself you can add 12000 to 15000 per month directly to your profit which makes a HUGE difference.

2) Buy the car!
And by this i mean do not go for financing options. No matter how attractive it may seem,

* Down payment Rs.1.5 lakh + Rs.12,000 as monthly instalment. Car worth Rs. 3 lakh costs around Rs. 5.5 lakh (as told by one driver). Bank finance involves certain formalities and documents such as income proof, tax returns, bank account details among others

* Buying a cab from Ola finance scheme: Down payment of Rs. 20,000 + Rs. 808 per day for three years. Insurance and maintenance are responsibility of Ola for three years, after which the driver is the owner of the car. With this financing scheme, a car worth Rs. 3 lakh costs Rs. 9 lakh, but the financing procedure is simpler

But we are here to make money right? And not just spending on these cab aggregators.

So if you buy a car you save a lot from your profit.
And even if you cant afford to buy a new flashy car from the showroom, just save enough to buy a decently used car from olx to put it on the job. So TADDA! Another  big part saved per month.

3) Get some part time drivers

To accomplish the targets, let some of your trusted friend or known drive a few hours for a few bucks in order to get your bussiness running around the clock!
It makes a major difference.

4) Learn how to get better fuel economy and maintain your car

Now this may sound a slow process but trust me it makes a difference.
With just good driving habbits you can add another piece of cake to your profits.

5) Provide extra services
Now this is a very unique idea where you can earn by using simple techinques.
Just by providing few services for a small charge, you can add upto your profits. E.g keep mineral water bottles and charge at MRP. Which fetch you approx 25% profit😎

6) Make happy customers and expect a tip
Tip is a right for a good service and if you make your customers happy, you can expect to get a tip for a happy ride.☺ Everybody is happy

Following the above meathods, you can expect real earning of around 30,000 from a car which is much more than most jobs these days and definately better than flipping burgers at McD or calling for hours at call centers for much lesser pay.

So the end if the story is, How good a player you are and how much can you make from it.

Do keep in touch with your blog from more money making ideas and making money to work wonders for you.