Typical Operational Expense When Starting Uber Business In The Philippines

We are receiving a lot of email regarding the opex or operational expenses in Uber Philippines. Some of them were really surprised as the in...

We are receiving a lot of email regarding the opex or operational expenses in Uber Philippines. Some of them were really surprised as the income is much more lower than what they had expected and there are many various reasons for it but the main point is the opex.

What are the expenses that you need to keep in mind?

Gasoline expense. The real cost of gasoline per week will definitely depend on how efficient your driver is and also what type of vehicle you have in your fleet. A usual 1.6 L vehicle could accumulate an expense of up to P3000 - P5000 a week and a 1.3 L vehicle could accumulate an expense of up to P2700 - P4500 a week depending on the efficiency of the driver.

Vehicle Battery. Most of the partners aren't aware about the battery expense especially if the vehicle is new. You must know that the battery that comes with yhe new vehicle is just good for at least 6 months to a year, it is not a heavy duty and since you will use the vehicle more than 8 hours on the road non stop, the battery will wear off the soonest. Having a heavy duty battery may cost around P8000 and up but hey it's really a good investment for a maintenance free battery that would last at least 2 years.

Vehicle Maintenance. Since your vehicle will be running at least 100-250km a day you should know that periodic maintenance will be sooner than what is stated on the vehicle manual. PMS is very important to make sure that your vehicle is on a top condition to provide service with passengers. PMS costs may vary from dealership and brands, so better ask your dealer for a quitation in advance so you could prepare before hand.

Vehicle Cleanliness. This is really optional if you have a lot of time to clean the vehicle yourself. We do it at least once or twice a week to cost cut some expenses. Vehicle cleanliness is also very important on this kind of business, well if you don't have much time on your hand you must be ready to shed out at least 320 a week for car wash.

Food Allowance. If you are an operator this could be an optional matter and will depend on the contract with your driver. But for those who are driving their own, you should keep in mind to at least ready around 200-300 for food allowance, water drinks and etc.

Mobile Data and Communication. Since Uber is a technology based business, you should keep in mind the cost for mobile data and communication. This will range from P100 to P150 a week depending on your preferred mobile network.

Conclusion on Operating Expenses in Uber Philippines

There are a lot more of them, i think it would be safe to say that you should have at least a month or three worth of emergency fund for the opex. As you all know, starting on this business is really hard, you need to put a lot of effort, hard work and business strategy in order to survive before becoming stable.

If you have any questions don't hesitate to comment them below or email us at tudmanila@gmail.com We will be glad to help you out.

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