12 things you need to know about driving an Uber in Nigeria
There are a whole lot of questions regarding the Uber Taxi business in Nigeria. And if these doubts are not cleared, many will never want to go into the Uber taxi business in Nigeria. And for this singular reason, i have decided to come up with this publication coined from a question and answer session we had with Gbenro Ogundipe, an Uber driver/partner who is based in Abuja. In that session, everyone who was interested in knowing what driving an Uber in Nigeria is all about, had he time to ask all their questions and for sure they did get all their answers in return as they wanted it. And I am so sure that this article will help solve and clear every doubt you may be having as regards the Uber taxi business in Nigeria. Let’s roll.
- Drivers keep 75% of the fare
According to Gbenro, the Uber driver gets 75% of the fare, while the 25% remaining goes to Uber Company. You don’t need to argue this. This is true because we had the opportunity to hear from a beneficiary.
- Payments are made weekly
The Uber taxi corporation pays her partners on a weekly with the business week ending at 4am on Monday. Then by Tuesday, a report showing your activities for the week and how much you due, will be sent to you. And this will enable you understand where you are regarding how much you have earned so far. But payments are issued out on Thursdays. Thursday are days when the credit alert from your bank will come in.
Then for payments that involves cash rides, at this point, you are basically a cash collector. This means that you are expected to submit all cash accrued to your corresponding Partner. Uber does not ask for cash from her customers or partners. The percentage taken by Uber taxi is done via the card transactions you might have gathered over the week. With this in mind, you can never owe Uber. In fact it is almost impossible to owe Uber with this method i just shared with us.
- Partners make as much as N100,000 in a week
When Mr Gbenro said this, I was extremely shock to hear it. He said as a Partner, you can make between the range of N40,000 – N100,000 a week. According to Mr Gbenro if you own and drive your own car, you could also make more than the N40,000 – N100,000 a week.
- Building your business to work without incentives is important
Well Mr Gbenro, said one of the best ways to last in the Uber taxi business in Nigeria is to build or create a model that is not reliant on incentives. There are a whole lot of incentives issued by Uber. For example, partners can get a bonus of N40,000 after 20 trips and for every Partner or Driver you invite. With this mindset, you may never make a fortune out of the business.
- So also is having a good, fuel efficient car
The reason you should go for a fuel efficient car, is simply because you will on route on a regular bases and that is not a joke. Over here, there is no-brainer. So you a fuel efficient car needed if you don’t want to spend all your money on fuel. There where car products he highlighted. Mr Gbenro recommended Hyundai Accent, Toyota Corolla or Kia Rio. In his words, “[they] are some of the best Uber X cars.”
- …and sorting out your insurance
Uber does not joke with this and this is the reason he has made it so compulsory for all cars to have a comprehensive insurance. Well just know that Uber is not particular interested in the insurance provider. Getting insurance that will cover you in the event of an accident. According to Mr Gbenro, he suggested that you get a Broker who will get you the best insurance rates available.
- You can make as many as 100 trips per week
In Abuja they can have about 100 or 120 trips taken per week with an average of N800. But forrides in Lagos, it could be less (because the traffic and roads are worse) and the fares could be more.
- Fuelling costs up to N35,000 a week
From experience, Mr Gbenro said he spends about to N35,000 a week for fuelling his car. It’s a simply reason because you will be driving a lot so you should be ready to shell a few bucks to fuel the car. Mr Gbenro said, he noticed that the Toyota Camry takes between N25,000 and N35,000 a week to refuel. With a good fuel efficient car, with a sound engine, you will surely spend less of what Mr Gbenro.
- You can pay for a N2m car in 6 months
Some persons may not have the well wither to get a car for this business and so they are advised to get a car for the Uber business in 6 months you must have paid it all that will only be when you are driving yourself. But if you are driving for some else, then 18 months to pay back.
- About 50% of rides in Nigeria are paid for in cash
Well many Nigerians are never too comfortable with leaving their card details on an online platform, and that is why the statistic is not surprising at all. According to Mr Gbenro, This have become a major issue for so many.
- Hotels and malls are good places to scout for ride
We recently saw an Uber publication that showed the top destinations in Lagos and hotels and shopping centres made up 28.1% and 26.1% of the rides respectively. According to him, he gets tip off of potential customers immediately he get to these zones.