Uber, as well as companies like it, is profit seeking. In order to attract more riders and passengers, they would strive to keep their fares down.
They try to balance this by ensuring that Uber drivers earn just enough profits (not too high, just enough) to ensure there are sufficient Uber cars on the road to make money for Uber's commission.
Uber as a business concept originated in the USA where cars are much cheaper compared to Singapore.
In Singapore, cars are horrendously expensive due to the high taxes imposed to curb the growth of the local car population. (Where in the world would a Toyota Corolla cost more than S$100,000?)
Because of the abnormally high prices of cars here, rental costs of cars would also be high. This problem is exacerbated by high fuel prices.
When you combine high car ownership and operation costs with low fares, it will result in a situation where it is really hard to make real money driving for Uber.
In the Singapore context, I feel that it is really only worthwhile driving for Uber if you own your car and it has been fully paid for, that is, not on any kind of financing.
If you rent a car to drive for Uber, it will not be a viable option. The high daily rentals, low fares and illusive incentives, plus the high petrol prices will ultimately eat up whatever profits you may have.
Most people who rent cars to drive for Uber/GC will sooner or later realise that the monetary returns is so low ($3.00 to $5.00 per hour net, after deducting all costs) that it is simply not worth it as a career or worth driving long term.
Even if you don't mind the low pay, the lack of benefits and the long hours required to just break even will eventually drive you to seek other options like driving a real taxi.
This is the sad but true situation if you rent a car to drive for Uber / GC in Singapore. No matter how hard you work, the system here is such that there will only be a few winners in this game. The rest of the drivers who rent cars to drive will have to eek out a living driving long hours for low pay.
They try to balance this by ensuring that Uber drivers earn just enough profits (not too high, just enough) to ensure there are sufficient Uber cars on the road to make money for Uber's commission.
Uber as a business concept originated in the USA where cars are much cheaper compared to Singapore.
In Singapore, cars are horrendously expensive due to the high taxes imposed to curb the growth of the local car population. (Where in the world would a Toyota Corolla cost more than S$100,000?)
Because of the abnormally high prices of cars here, rental costs of cars would also be high. This problem is exacerbated by high fuel prices.
When you combine high car ownership and operation costs with low fares, it will result in a situation where it is really hard to make real money driving for Uber.
In the Singapore context, I feel that it is really only worthwhile driving for Uber if you own your car and it has been fully paid for, that is, not on any kind of financing.
If you rent a car to drive for Uber, it will not be a viable option. The high daily rentals, low fares and illusive incentives, plus the high petrol prices will ultimately eat up whatever profits you may have.
Most people who rent cars to drive for Uber/GC will sooner or later realise that the monetary returns is so low ($3.00 to $5.00 per hour net, after deducting all costs) that it is simply not worth it as a career or worth driving long term.
Even if you don't mind the low pay, the lack of benefits and the long hours required to just break even will eventually drive you to seek other options like driving a real taxi.
This is the sad but true situation if you rent a car to drive for Uber / GC in Singapore. No matter how hard you work, the system here is such that there will only be a few winners in this game. The rest of the drivers who rent cars to drive will have to eek out a living driving long hours for low pay.
