A Personal Finance Blog for Malaysian: Want to be an Uber Driver (for income)? You must think twice.....

Sunday, June 12, 2016

Want to be an Uber Driver (for income)? You must think twice.....

Some folks in Kuala Lumpur claim a full time Uber driver can make up to RM8,000 per month.

Uber claims its drivers can earn up to RM30 per hour. If it is true then...
  • RM30 per hours x 8 hours a day = RM240.
  • RM240 a day x 26 days = RM6,240 (do you agree we must rest 4~5 days in a month)
Based on many statistics and report, most working Malaysian earns less than RM4k a month. Anything above RM4,000 is very interesting and attractive sum to attract many people give up their full time job and be a full time driver.

However, you might have to think twice before fire your boss and be your own boss (be Uber Driver). There are many factors to be considered. Uber paints nice glossy pictures into your head without telling you many other issues, that income not equal to net profit, e.g.:-

  1. Profit Sharing. Uber takes 20% (or 25% if you register now) of your 'income'.
  2. Petrol. Will be at least 1/4 to 1/3 (easily 20% ~ 30%) of your income. Some trip are not profitable as rider's destination may not give you a paying return trip, e.g. the rider destination is 30km away from your home or the Urban area. You might have to drive a distance for next ride request.
  3. Depreciation. Not really a problem if you already have that car (perhaps fully paid off) but if you going to buy a car for doing Uber business, then you have to factor in RM per KM.
  4. Service and Maintenance. The higher the mileage you clock, the higher the cost of service and maintenance. Lousy car may cost you your driving privilege with Uber if riders give you bad rating for your poorly maintained vehicle. Beside that, it costs to clean the car, in and out.
  5. Toll. You get reimbursement from fetching rider to their destination but on return trip, you are on your own. Going to KLIA or KLIA2 is no fun if you can't get a rider for return trip back to the city. No wonder so many Uber driver hanging around (for hours?) till they get a request.
  6. Occupancy rate. You will not be occupied full time. Some hours are very quiet, no rider. RM30 per hour for 8 hours in a day is impossible.
  7. Rating system. Uber uses a 5-Star rating system to 'manipulate' driver. It is good way to improve with feedback but bad in the way that driver have to drive to places they don't want to go in order to maintain good rating.
  8. Destination. You don't get to choose your rider or rider's destination? Yes or no. You have to accept the request, then you can ask (call or text) rider's destination. Either rider or driver may then cancel the trip IF can't agree on the destination but rider may put bad rating to you.
  9. Short trip. Some trip can be as short as 1~2km but you might have to drive 5 minutes or 5 km to get there.
  10. Bad riders. Bad attitude, damage to your mood or vehicle. 
However, if conditions are right, driving Uber isn't that bad, IF
  • you have too much free time. Going out will cost you money but Uber around may make some.
  • your current income is really not that high thus extra RM500 a month is a relevant sum.
  • you already have a car but under-utilised, why not optimize it for extra income.
  • you want to know more people, perhaps a potential girl friend.
  • you think Tier 2 Hour Guarantees is good enough (from RM16 per hour before commission and expenses) and you will earn more by hitting to Tier 1 (higher acceptance rate). Click here for details.
Latest Promotion
Effective 28th July 2016 at 12.00am – this overrules all prior incentive announcements
September - https://newsroom.uber.com/kl/uberx-hourly-guarantees-September-2016/

Tier 1 – Guarantees up to RM2,508 (September 2016)

Mon-Fri 6-10am: RM30/hr
Thurs-Sun 4-8pm: RM30/hr
Fri-Sun 11am-2pm : RM30/hr

Tier 1 – Guarantees up to RM2,095 (August 2016)

Mon-Fri 6-10am: RM30/hr
Mon-Thurs 4-8pm: RM22/hr
Friday 11am-2pm & 4-8pm: RM25/hr

Tier 2 – Guarantees up to RM2,384 (September 2016)

Thurs-Sun 4-8pm: RM30/hr
Fri-Sun 11am-2pm: RM30/hrMon-Fri 6-10am: RM25/hr

Tier 2 – Guarantees up to RM1,947 (August 2016)

Mon-Fri 6-10am: RM25/hr
Mon-Thurs 4-8pm: RM20/hr
Friday 11am-2pm, 4pm – 8pm: RM25/hrFor all other hours, see below:

Tier 2 – Guarantees up to RM1,887

Mon-Fri 6-10am: RM25/hr
Mon-Sat 4-8pm: RM18/hr
Friday 11am-2pm: RM25/hr
Terms and Conditions
1) Accepting all trips during these hours (maintaining a minimum of 90% trip acceptance rate for the week) (Askchong: Can't be selective on destination)
2) Meeting these Trips per Hour conditions:
Minimum Trips per Hour (TPH)
When does it apply?
At least 1.25 TPH
Monday – Friday: 6am – 10am
Fri 11am – 2pm
Monday – Saturday: 4am – 8pm
At least 1.0 TPH
All other incentive blocks
TPH is calculated by the number of completed trips divided by your total online hours. For example, if you were online for the entire time between 4-8PM on Monday, and completed 6 trips, your total TPH for the period is 1.5.
3) Maintaining a weekly average driver rating of 4.3* and above.(Askchong: not that difficult)
4) Be online in our Core Service Areas. Please note at least 50% of trips during each incentive block must start within these Core Service Areas.
5) uberX and uberXL fares both count towards the RM 500 (Askchongper week) threshold to qualify for top tier guarantee
6) Effective 30th May 2016 at 12.01am – this overrules all prior incentive announcements
7) We reserve the right to take any necessary action in the event that we discover any suspicious or fraudulent activity
Terms and Conditions
1) Accepting all trips during these hours (maintaining a minimum of 90% trip acceptance rate for the week)
2) Maintaining a weekly average driver rating of 4.3* and above
3) Completing a minimum of 0.75 trips per hour on average across all hours online during the week
4) Completing at least 1 trip per incentive block in which you are online (e.g. Monday 4pm-8pm)
5) Being online only in Core Service Areas (Mont Kiara, PJ, Golden Triangle, etc). Please see THIS MAP and ensure >75% of your online time is within this area.
6) uberX and uberXL fares both count towards the RM 600 threshold to qualify for top tier guarantee
7) Effective 18 Jan 2016 at midnight – this overrules all prior incentive announcements
8) We reserve the right to take any and all necessary action in the event that we discover any suspicious or fraudulent activity

All incentive information, the way guarantees work and the calculations can be foundHERE under the “Payments” tab. Information can be seen for all our products (uberX, uberXL or BLACK) and is kept up-to-date
September 2016 Tier 2 Hourly Guarantee Schedule

Decided to Drive? Click here to sign up. Learn more tips in order to optimize your income.

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