Increase your income with Uber

Increase your income with Uber
September 14, 2017 Mrs. K Compare
Increase-your-income-with-Uber-Karlocompare

Transportation in Pakistan had been a sore issue since the very beginning. Successive governments have failed to provide a decent mode of public transport to people, particularly in urban areas. If you are on the demand side of it, you may have faced times where you have to haggle for prices with a rickshaw wala or a taxi driver or have faced the brunt of an overly populated public bus. The announcement by Uber that it was coming to Pakistan was seen as a breath of fresh air, in the light of public transportation across the country. If you are one of the unaware, let’s talk about what Uber is.

Uber is an international transport technology company based in San Francisco, California USA. Founded in 2009, the very idea became an instant success; Uber now operates in more than 650 cities around the world. In comparison to traditional taxis and cabs, Uber is not only inexpensive but is considered far more safe and convenient.

The service runs on easy to operate mobile application. With one touch of a button on your smart phone the hired driver branded as a “captain” in Pakistan, arrives within minutes to pick the passenger and drops him at the desired destination. The service is available in major cities across Pakistan with an additional option of auto rickshaw as well.

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How Much Money Can You Make With Uber?

While for the consumer, Uber is a lifesaver, how can you benefit from it if you are on the driving seat? You can use your car, your family car, or a leased car to start driving for Uber yourself. All you need is a valid Driving License, familiarity with the city and some time, to make sure you can drive people around the city. There are a couple of ways to register to be an Uber Driver, either through the online registration or through their office.

If you have your own car, and are driving yourself, your monthly income can range anywhere between PKR 80,000 and 100,000. If you are going to sign up only for part time, your income can be anywhere between PKR 20,000 to PKR 40,000. If you intend to obtain a car on lease, and/or hire a driver, your net earning can vary according to the expenses you have to take out from the total as well.

What If You Don’t Have A Car?

Uber is a great opportunity for people to make a few extra bucks on the side, or perhaps even utilize a couple of their cars and earn extra income. Owning a car is a plus point otherwise obtaining an auto loan and having a car leased from a bank or a modaraba is also a genuine possibility. It is one of the safest ways of being self-employed. If you intend to go the route of obtaining a car loan or lease, it is recommended (and in some banks’ cases, mandatory), to obtain vehicle insurance to ensure that the bank’s investment, and your car remains protected.

Although all banks offer auto loans, however for general understanding auto finance by UBL is explained here for quick reference. UBL “Drive” offers auto loan in two shapes: Fixed and flexible rates. For UBL customers, fixed rate for3 years is 15% and for non UBL customers it is 16% for the same period. Similarly, for UBL customers, floating rate for 1 year is KIBOR + 6% and for non UBL customers is KIBOR + 7%. The total financing available for a vehicle purchase is 80% of the car value. Now suppose if the car costs PKR 750,000, the bank financing will be up to PKR 600,000. If the option of fixed financing is taken, monthly instalment can be calculated as under:

Bank Finance                                                                             600,000

Mark up @ 15% per month 90,000÷3÷12=                           2,500

Principal amount repayment 600,000÷3÷12                        16,667

Approximate installment each month                                   19,167

* Car registration, insurance & local taxes payable yearly not included

Even if the car is leased on 3 years basis the idea is lucrative and economically viable. A driver who makes between 70 – 80k can easily manage to repay 20k each month; bonus will be the vehicle that will be the asset after 3 years.

You can always compare different car loan options by running through our comparison tool.

Comprehensive car insurance covers all aspects of damage; theft, snatched at gun point, burnt by accident or due to a law and order situation, and most importantly, any sort of collision while driving or while being parked. Although there are several insurance companies who provide comprehensive car insurance; EFU General Insurance Ltd, IGI Insurance, Jubilee and East & West Insurance are said to be the first choices. The cost of the premium, of course, will depend on the cost of the vehicle and the extent of the coverage required. You can always compare various insurance plans for your vehicle through our online comparison tool.

So if you are game to try Uber as a driver, sign up and find out the kind of benefits that you can get from being an Uber Driver!

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