Update on Uber Driving in 2024
In 2024, Uber made substantial progress in enhancing its service and offering more incentives to drivers. Nevertheless, whether Uber is a financially viable primary income source remains a hurdle when considering vehicle maintenance costs in addition to commissions or fees.
Consequently, most drivers resort to engaging with passengers and getting the rides canceled to evade commission payments, particularly for long-distance trips.
A more equitable solution that benefits both drivers and Uber must be found.
The Challenge
Modern-day innovations make life easy and offer new opportunities. Some applications revolutionized the transportation industry.
Now, some applications work on both Desktops and mobiles, making getting a ride as easy and fast as the snap of a finger.
Recently, with the holiday season ending with more leave-in-hand, I decided to start Uber Driving full-time. The application is clean and easy to use and makes driving comfortable.
At first, this may seem like a lucrative opportunity to earn extra income, but it could be better as a full-time job.
Driving part-time can be cost-effective because you can get a rider headed towards your destination, cover the fuel cost, and have a decent conversation if the rider is willing.
I have been driving for two days, packing up 10 hours daily and completing 10 to 15 daily trips, including long-distance hires.
On Day 1, I drove for nine h 58m, completing 15 trips with a distance of 193Km (Including distance driven to Pickup) for LKR 4,814.99 (USD 24.76 – Today’s Exchange rate is 194.45)
DAY 1: FUEL CONSUMPTION ANALYSIS
Vehicle Type: Honda Fit Hybrid/Petrol
Fuel Type: 95 Octane
Price per Liter: LKR 161(USD 0.83)
On a Honda Fit, 1 Liter does 20Km driven under 40Kmph
On April 19th, 2021 I have done 193Km utilizing 9.65 Liters of Fuel which amounts to (9.65l X 161LKR) LKR 1,553.65
DAY 1: TRIP EARNING ANALYSIS
Total Earning for the day = LKR 4,814.99
Uber 25% Commission = LKR 1,203.75
Driver Total Earning = LKR 3,611.24
Fuel Consumption cost = LKR 1,553.65
Driver Earning – Fuel Cost (LKR 3,611.24 – LKR 1,553.65) = LKR 2,057.59
DAY 1: Trip Earnings
15 Trips with Uber
193KM Driven with Uber
On Day 2, I drove for 10 hours 9 m, completing nine trips with a distance of 190Km (Including distance driven to Pickup) for LKR 5,064.75 (USD 26.05 – Today’s Exchange rate is 194.45) [SCREENSHOTS REMOVED]
DAY 2: FUEL CONSUMPTION ANALYSIS
On April 20th, 2021 I have done 190Km utilizing 9.5 Liters of Fuel which amounts to (9.5l X 161LKR) LKR 1,529.50
DAY 2: TRIP EARNING ANALYSIS
Total Earning for the day = LKR 5,064.75
Uber 25% Commission = LKR 1,266.19
Driver Total Earning = LLKR 3,798.56
Fuel Consumption cost = LKR 1,529.50
Driver Earning – Fuel Cost (LKR 3,798.56 – LKR 1,526.50) = LKR 2,272.06
If you have followed me so far, you can earn around LKR 2500 for a 10-hour Uber rideUber ride.
If you feel that’s something better than nothing.
Guess what? This has not considered wear and tear. The more you drive, the sooner you must do the standard oil changes and service.
So, the standard employee salary is made for 27 days.
So, an Uber driver earns approximately LKR 67,500
The car service is either done every 5000 km or 7000 km. If you’re doing approximately 200 km a day, you will hit 5000 km in 25 days. Well, that’s every month if you take it.
So you better allocate LKR 10,000 to LKR 20,000 for the monthly service.
I do the oil changes and the basic service for LKR 15,000 (In a place like Hybrid Hub, it will be around LKR 30,000)
If I allocate money for the service, I’m left with (67,500-15,000) LKR 52,500 (USD 270) as the total earnings for the month.
That’s approximately LKR 1,945/—a day. You can survive with this, but if you have a vehicle lease on top of it, you are on your way to the gallows.
You are putting mileage on the meter while you are driving.
So, even if it’s your vehicle, you won’t get the market price for a car with heavy mileage.
Uber is not for everybody!
I’m Going To Earn less by spending more time on Uber. With an irrational 25% commission and rewards system, it’s a complicated deal.
If you have no other option, you will have to deal with it, but if you have a lease, this is best done as a part-time job.
Why are we writing about Uber? As a digital marketing agency in Sri Lanka, we interact with digital services and make a living off them, proving value for our clients. Uber offers a similar service, and as first-hand users from a rider and driver standpoint, we thought we’d share our experience just to encourage digital service providers to think on the triple bottom line.
Please note that the figures in this article are from the time the article was originally published.
