Uber / Grab Vs Taxi

[globalcookie]

Just a random thought.

Is it worth it being a Uber/Grab driver vs taxi? This is where e person doesn't have a car and thinking of buying a car or renting to become Uber/Grab driver.

Car ownership cost is between $1.5-2k per month. Let's say, while renting from tie up companies to drive as Uber/Grab starts at $55 excluding operating cost, which could be almost than $30/day. I expect it to be at least $50.

Uber promises that drivers will make at least $25/hrs in fares. The company takes 20% cut thus nett fare takings is $20. Let's say the person drives 10 hours a day, his nett fares will be about $200. If you deduct rent and operating cost of $105/day, take home is about $95 per day.

Given the same 10 hours, taxi drivers are able to take home about $150/day (nett sum).

Those driving app companies seems more worth driving than taxi given the rental and operating cost being lower. However, the 20% fare given to them, it isn't cheaper anymore.

For those with existing car, driving and collecting fares helps reduce your car ownership cost so I leave this out of e comparison above.

[globalcookie]

The operating cost of $50 is a guess.... compute...

Fuel : $38
eg 300km requiring 25 liters x $1.60/liter (heard from a Uber driver, there's 25% discount tie up if they hit target).

Parking cost : $5-8 (including season parking).

Other cost.

[globalcookie]

OK as passenger, how much more do you pay for different taxi?

I'll use Comfort n City Cab for illustration,over a travelling distance of 15km (not taking into consideration stopping time)

Sonata
Flag down: $3.20
1st km no fare jump
First 10km at $0.22/400m : $5.50
Next 4km at $0.22/350m : $2.51
Total excluding stopping : $11.21

I40
Flag down: $3.70
1st km no fare jump
First 10km at $0.22/400m : $5.50
Next 4km at $0.22/350m : $2.51
Total excluding stopping : $11.71

Pruis
Flag down: $3.90
1st km no fare jump
First 10km at $0.22/400m : $5.50
Next 4km at $0.22/350m : $2.51
Total excluding stopping : $11.91

Limo
Flag down: $3.90
1st km no fare jump
First 10km at $0.30/400m : $7.50
Next 4km at $0.30/350m : $3.43
Total excluding stopping : $14.83

Difference between Sonata and Limo is $3.62. Not really a lot.

Same distance in a Uber cost $3 base fare and $0.45/km
Total fare exclude stopping: $9.75 for their non peak.

Their peak charges can be more costly than taxi.

[Kohaku]

Are u thinking of being a taxi driver? Else iIsee no point asking here. Once all promotions over, take taxi is better.

[Charlesnah]

I prefer taxis.. esp with some promotion still ongoing like Mastercard which waive booking fee..

I had seen Uber/Grab driver seem very tired.. sit their car I oso scare.

Until they are more regulated then maybe I give them a try.

[globalcookie]

Originally Posted by Kohaku

Are u thinking of being a taxi driver? Else iIsee no point asking here. Once all promotions over, take taxi is better.

Was in the gym doing cardio when i started this thread

Not exactly thinking of being a taxi driver. Am contemplating getting a car again in the coming months thus the thought of Uber/Grab crossed my mind. Had chat with some who drives taxi too, thus derived at some figures from taxi driving.

Originally Posted by Charlesnah

I prefer taxis.. esp with some promotion still ongoing like Mastercard which waive booking fee..

I had seen Uber/Grab driver seem very tired.. sit their car I oso scare.

Until they are more regulated then maybe I give them a try.

I took Uber once and was looking at the fares. These apps sometimes ain exactly honest when they 'çompare' taxi fares vs them. I remember once, checking from Woodlands checkpoint to my place. By taxi, the app showed it would cost >$40 while by Uber, it cost about $25 (if I don't recall wrongly). But in actual, taking taxi cost about $30 including midnight charges.

The part on tired. That happened to a ride. Saw the Uber driver, barely able to keep his eyes opened. So i chat with him throughout the short trip.

Quite recently, I took a hired vehicle from airport to town (Phuket). The driver actually dozed off (that 1 second shut eye type). Gosh... i deliberately let him know i'm watching. It wasn't a comfortable ride.

[Kohaku]

Then u must be thinking of the option some vehicle rental company is offering? Like u rent the vehicle at $65 a day, include servicing etc, then after 5yrs u have the option of owning the veh?

I had talked with some taxi drivers and Uber drivers, they says Uber also have targets to meet to have the special promotion or returns. They are always changing and some have switched over. A taxi driver ever ask me", Do u think Lta or taxi association will not come out to regulate private veh taxi? " If involved in an accident, the passenger is not cover by private veh insurer insurance, no claiming against driver. Those who rent or own a veh, when they can't afford, be able to continue to drive uber/grab? I ever rode in a merc veh Uber driver, he tried to sell me his old merc while iI was taking his ride. I asked him why and he told me business failed, can't afford to pay for his merc payments, so drive Uber to cover instead of selling as he lost more
If he selling.

You must plan for 5 years and above if u really to use ur veh for private ferrying service. There was a episode of Frontline that also highlight the same thing. Maybe u want to catch up on it.

[globalcookie]

When I mentioned contemplating getting a car and the Uber/Grab thing came to mind, it's not this purpose for getting a car. These are just exploitative thoughts of putting the car to better use and generating revenue to cover part of car ownership cost. But at the same time, no I'm not using these in order to be able to afford a car. I won't even toy with the thoughts of getting a car if I need to slog just to own a car (slave to a car in that case). My usage isn't high, but as I currently shares a car with my colleague, and the car won't be available in another few months, I will need to consider getting my own.

On the rental option, it doesn't make sense to me. It makes sense for those who can't afford or can't bear with the down payment for a car. Thus renting is an option to them but not me. At $55/day that works out to $1650/mth. I rather buy a car (where depreciation, road tax and insurance works out to about $1k/mth and usage and maintenance cost likely between $500-800 for my estimated usage).

For those who can't afford to down pay, and they need a car, this option is viable, but $55 x 365 days x 5yrs is $100,375. Yet if they hv to pay a 'ownership' fee after 5yrs, they actually pays a lot more.

Indeed, to qualify for higher petrol discount, and promotional incentives, there are targets to meet. Add the calculation I illustrated in the 1st post, it is actually better to drive taxi than full time Uber/Grab. After all, taxi has call charges to collect, take street flagging, etc. Private hires cannot do street fares. Some were caught and charged so far.

Regulation is certain. It was mentioned in the news, by middle next year, the gov will implement the need for Private hire Driver Vocational License (PDVL). I can't find any links to such courses, which likely means they have not finalize but it'll happen given this being Singapore.

On the accident and insurance part. For private hire vehicles, the insurance needs to cover commercial use. There are coverage for passengers but there are limitations. In the event something happens, and there were a few already, it's passenger against insurance and driver. The companies behind is not responsible. Comparing that to taxi companies, it is actually much better being a passenger in a proper taxi, at lease when things happens there are better avenue for accountability.

[foxwagon]

Wah GC u do cardio still can think n analyse much details! No need to breathe?

Sent from my 2014817 using Tapatalk

[llewellyn]

My friend owns a car rental company, all his uber, grab driver's income goes into his company and he showed me the account.

$2.5 to $3k based on average 8-10hrs work.
Morning peak hours must do to cover all your cost for the day
Off days still got vehicle rental to pay.
And you meet nasty passengers