Driving for Uber or registering your vehicles with Uber and getting drivers to drive the vehicles for you is one of the most lucrative ways of making money in the transportation industry currently. This can bring good income to you if you get involved in the business directly ( as a driver ) or indirectly ( as an investor ).
In the guide below, we shall look into how you can begin to make a decent monthly income by driving for Uber or registering your vehicles with Uber.
Brief history of Uber
Before I delve deep into this exciting business, here is a brief history of Uber.
Uber was created by two friends in 2009 named; Garrett Camp and Travis Kalanick who four years earlier had to wait for a taxi in the cold for a long while before seeing one. This made them to think of creating a way to order and get a taxi within minutes. Uber was born out of this situation.
The idea behind Uber is very simple, which is tap a button and get a ride. The idea was bought by so many people which quickly made Uber to gain popularity in big cities like San Francisco and Paris and other cities around the world.
Uber’s current CEO is an Iranian-American named Dara Khosrowshahi who is an active businessman.
Uber in Nigeria
Uber was introduced to Nigeria in 2014 and it has since been massively accepted and used in Lagos and Abuja. The ease it creates in ordering a ride at the comfort of your office or home makes it widely accepted, as a rider is at your location within minutes of placing an order.
Uber made transportation so easy, as anywhere you are, be it at the airport, your home or office or wherever you may be, an Uber driver can come to pick you exactly at that spot once you place an order.
The ease, privacy and convienence it has introduced to our busy schedule has made it widely accepted by many.
How to start making money from Uber business
Uber gives you the flexibility of being your own boss, as you can decide to work at your own terms. It is also a good avenue to convert your car that would have otherwise been a liability to you into an asset.
There are 3 ways to make money from Uber business, which are:
1. As a vehicle owner who wants to drive his/her car.
2. As a vehicle owner who wants to employ someone to drive.
3. As a driver looking for a vehicle to drive.
The entire process of registering takes approximately 2 weeks.
Requirements for a vehicle owner who wants to partner with uber :
1. The vehicle must be 15 years old model or a newer model.
2. Valid driver’s licence must be in place.
3. Vehicle insurance certificate must be up to date.
4. Vehicle inspection papers must be up to date.
Once the above is met, you need to take the car for inspection at Uber office. After the car has been inspected and declared fit for the road, you can start your online registration by creating your profile. ( I will share the Uber website at the end of this article ). When this has been done, you can select the way you choose to partner with uber from the 3 options which are: vehicle owner driving, vehicle owner not driving, lastly driving.
At the process of registration, you also need to include your bank account details, your bank swift code, your tax identification number.
If you don’t want to drive the car yourself, from your dashboard click on add a driver, uber may recommend a driver to you.
Requirements for an Uber driver
- Must have a valid driver’s license
- Must be 21 years and above.
- Mustcomplete a safety training by Uber.
- Obtaina drivers institute ID (for Lagos drivers).
- Will pay the required sum of N20, 000 to Uber for background check to be carried out about you. This is usually done in conjunction with the police and it is done to ensure that no criminal records or convinction is found about you for the safety of the passengers.
- An agreement with the owner of the vehicle (this is between you the driver and the owner of the car you will use ). A certain percentage of profit sharing is agreed upon or it may be salary based.
Requirements for vehicle owners giving vehicles to a driver
For a vehicle owner, who doesn’t want to ride but ready to give the car out to Uber drivers, here are the requirements:
- Vehicle license.
- Certificate of road worthiness by FIRS.
- Proof of ownership.
- Car insurance.
- Certificate of incorporation. This is expected because you own your business, you are not employed by uber.
Specifications of vehicles allowed by Uber
- Vehicles should have working air conditioner.
- Complete seat belts for passenger and driver.
- Working car radio.
- Working windows and must have 4 doors and be able to transport a minimum of 4 passengers.
- Vehicle can be any mileage but must be in good condition and shape (there was a previous restriction of 100,000 mileage).
- Vehicle must be of 15 years old model or newer model.
- Cannot have any cosmetic damage, missing pieces, commercial branding or taxi paint jobs.
- Vehicles can either be Toyota Camry or Corolla, Nissan, Honda accord, civic and element, Kia Rio, Hyundai elantra, sonata, Tucson models.
Commission Sharing Ratio for Uber business
It’s worthy to note that Uber collects 20% commission fom the revenue on each ride and gives the vehicle owner 80%. This is a fair deal. Note that the cost of vehicle fueling and maintenance is the responsibility of the vehicle owner.
From the 80% revenue, the vehicle owner pays the driver of the vehicle ( in a ratio agreed between the driver and the vehicle owner ) and keeps back the remaining. In many cases, the driver bears the responsibility of vehicle fueling and maintenance. Everything is flexible and still depends on the agreement between the driver and the vehicle owner.
Drivers usually get the most passengers in the early hours of the morning and at evening period. This is when workers are either going to work or returning from work.
The afternoons could be a little less busy for drivers, as business tends to slow down with fewer rides.
From a research conducted amidst friends who are drivers on the platform, they earn close to 40k daily, and they remit to the car owners 70-80k per week ( which could be in the range of 30 to 40% out of the 80% of the revenue left behind after Uber takes their 20% commission ), as the drivers bare the total cost of vehicle maintenance and fueling.
Also note that the car owners inspects the vehicle weekly or periodically, to ensure that the car is in good shape and that the needed routine maintenance is been carried out on the vehicle by the driver.
Uber has a way of getting feedback on each ride from passengers by asking them to rate the driver, between 1 to 5 star. 1-3 star means bad behavior while 4-5 stars gets the driver a thumbs up.
Uber also has a way of rewarding drivers at the end of the month, who has performed well during the course of the month.
The importance of getting 5 stars feedback rating cannot be over emphasize, as it helps you get some off-the-app clients, who are ready to pay more to pick them wherever possible, and also get you good ratings and recognition which can lead to an award from Uber.
Quick Tips to become a 5 star Uber driver:
a. Be courteous: Treat your passengers like king, help open the door for them, ask if they will prefer any particular radio station.
b. You can give handy snacks: This can be little edibles, well packaged as a thank you gesture for the patronage. This can be a bottled water.
This will keep further help passengers to feel happy and more relaxed.
c. Keep your car neat at all times: This is important as you carry different clients every time. Ensure that after every drop, you check beneath your seats to remove any empty containers of drink and any other dirt.
d. Always wear a friendly countenance: This helps your customers relax well in the car.
e. Ensure your passengers are comfortable: While driving, you could take a peek at your passengers, ask to know if they are comfortable with your speed and if they are okay. This is especially important for long distances.
Uber business allows you work at your pace, without a having to pass through the extra demands of a boss. It also gives you room to set financial goals for yourself and achieve them. It can be a good way to diversify your portfolio when you have vehicles registered with Uber which generate revenue monthly in addition to your other sources of income. Also, as a driver, you can use the less active hours of the day for other businesses.
As an investor, registering your vehicle(s) with Uber and having drivers who driver for you can be a very good source of extra/passive income for you, aside your job or main business.
Ensure you enter into a mutually beneficial agreement with your drivers, if you don’t want to ride yourself. State terms and conditions which should be mutually beneficial to you and your driverd. This will encourage your drivers to be loyal.
If you want to register with Uber in Nigeria, you can visit their website: HERE
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DETAILED BUSINESS PLAN ON UBER TRANSPORT BUSINESS
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About The Writer: This article was written by Salome Precious. She is senior content developer at myafribusiness.com. She is an accountant by training and a business enthusiast by passion.
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