Driving with UBER is it worth it?
10:32 AMI am receiving alot of emails recently from aspiring uber partners, alot of them asking me this "is it worth it to pursue this business?". So i decided to write an article regarding this and of course i am no expert but my experience will be the basis of this article.
Is it worth it?
First i want to point out that if you are going to rely on UBER as your primary source of income, i am advicing you to not pursue this esp if you are going to buy a new car for this business.
In my case, doing uber is just my part time, although it seems that i am doing it full time, i have another source of income. I have two other businesses that is doing great and those two are enough on providing my family's needs just incase that uber can't sustain the income we expect.
You should remember starting any business is always a high risk, but if you have a great strategy and goal the risk will be lessen. You might want to check my article about how i build my strategy for driving uber so you can build one too.
Another thing, you should also take on the ff considerations:
- will you hire a driver or will drive your own car for uber?
- if you are going to buy a bnew car for uber, do you have atleast an emergency funds?
- buying a bnew car the smart way
Before you can answer this topic by yourself, let us talk about the three things you should consider.
Will you Hire or will you Drive
In my case i have two car enrolled in UBER, a 2015 toyota corolla 1.6v and a hyundai accent 2014 hatchback crdi. Even though i have two cars enrolled, i only drive them for my self. There are three reasons why?
- in case my other car is on a number coding, i can still drive the whole weekdays without a problem.
- in case there's an emergency (accident) i can still drive if i am not hurt, just like what happened last saturday, my altis was hit by a drunk driver for this week i am driving my hyundai accent till my altis is fixed (est time would be 5 days).
Driving your own car is far much better, if you ask me why, this is my answer. You'll get 100% of the income. While hiring a driver might be a smart move, but instead of getting 100% you'll get 60%. Yes you could throw me some basic network marketing move and say, it is wiser to hire a driver since i am not tired somebody works for me and yet i still earn. That might be the case, but will it be enough to cover all your expenses like monthly amortization, bills and etc.? Hiring a driver will only be advantageous if you have a fleet of cars (e.g. 10 cars) but if you only have one or two, in the long run, you'll experience a problem. Believe me i have many friends who started before me and some of them are in trouble with the bank now.
So basically i am not discouraging you, but i am just giving you an idea. Hiring a driver might work out great for you and driving it for yourself might not work.
Brand new car or not and Emergency funds?
So will you join uber as a partner with a brand new car? Considering this do you have an emergency fund?
When we say emergency fund in business, those are the funds that will cover the unecessary expenses if the business hits the low line.
Imagine this scenario, what if you or your driver didn't meet the required trips for the incentives let us say for three months? Do you have enough money to pay for your car's monthly amortization beside that what if one of your family member did have an emergency situation, if you or your driver meet the required trips for the incentives, can you still accomodate the emergency needs aside for the monthly amortization?
In my case, before i started in UBER, i already bought my altis having this in mind. I have an emergency funds that can cover atleast 6 months monthly amortization in advance and also have for a family emergency. I have learned this on a hard way and lost one out of three businesses i built before. Keeping that aside, you should consider having one.
Buying a Brand New Car the Smart way
How should you consider buying a car in a smart way. Just like what i have said above, you need to have at least a savings or emergency funds that can accommodate at least 2 months monthly amortization in advance so that you can never be in trouble with the bank. Even if there are problem arise you have two months to make it right. In my case as i have said i have a fund for at least 6 months in advance.
Now back in the topic, is it worth it? Once you considered those aspects then let me answer this in a very honest possible way. Yes, but take in mind that pursuing this ride sharing business is somewhat a roller coaster ride. It might be hard or easy depends on your strategy and goals. But definitely it is lucrative if you done it right. Just keep in mind about the considerations before you enter this business.
When we say emergency fund in business, those are the funds that will cover the unecessary expenses if the business hits the low line.
Imagine this scenario, what if you or your driver didn't meet the required trips for the incentives let us say for three months? Do you have enough money to pay for your car's monthly amortization beside that what if one of your family member did have an emergency situation, if you or your driver meet the required trips for the incentives, can you still accomodate the emergency needs aside for the monthly amortization?
In my case, before i started in UBER, i already bought my altis having this in mind. I have an emergency funds that can cover atleast 6 months monthly amortization in advance and also have for a family emergency. I have learned this on a hard way and lost one out of three businesses i built before. Keeping that aside, you should consider having one.
Buying a Brand New Car the Smart way
How should you consider buying a car in a smart way. Just like what i have said above, you need to have at least a savings or emergency funds that can accommodate at least 2 months monthly amortization in advance so that you can never be in trouble with the bank. Even if there are problem arise you have two months to make it right. In my case as i have said i have a fund for at least 6 months in advance.
Now back in the topic, is it worth it? Once you considered those aspects then let me answer this in a very honest possible way. Yes, but take in mind that pursuing this ride sharing business is somewhat a roller coaster ride. It might be hard or easy depends on your strategy and goals. But definitely it is lucrative if you done it right. Just keep in mind about the considerations before you enter this business.
Drive with UBER
Are you an aspiring uber partner? Do you want to drive with UBER? If you find my blog helpful and you consider to be a partner, you can use my referral code so that we could both earn extra P2000 once you completed your first 10 trips. If you do use my referral code, i will also help you get establish in this business, I can guide and teach you all of what i have learned doing UBER, all the things i could teach you are based on my experience as a partner.
4 comments
Hi. I will register at Uber soon. I will use your referral code. I hope you can guide me. Thanks. My email add is jdbernat@yahoo.com
ReplyDeleteHi the optimist,
DeleteRest assured that i will. Thanks and hope to see you on the road soon.
Hi im an aspiring uber partner. Im cant decide which is better between the altis 1.6v and the accent crdi to use? Both a/t
ReplyDeleteHi Watari 911,
ReplyDeleteBoth are okay, but if it's purely for business, choose accent as it is a diesel.