FAQs

Uber has stopped the trip incentive plan, how does the business guarantee works? Please provide one example in numbers.





Let me give you the example of my driver just the previous week, Let me clear the numbers here :

Incentive Plan: a) Get Rs. 8400 BG for Rs. 2360 earnings b) Get Rs. 6800 BG for Rs. 1980 earnings c) Get Rs. 6000 BG for Rs. 1750 earnings d) Get Rs. 5500 BG for Rs. 1440 earnings e) Get Rs. 3800 BG for Rs. 1220 earnings f) Get Rs. 2500 BG for Rs. 840 earnings g) Get Rs. 1200 BG for Rs. 460 earnings

Earning = Fare - (UBER fee + Service Tax)

Actual trip amount is the total fare my driver collected from the riders.
Earning on the day is the total amount I got that day after deducting 20% UBER fee and 5% Karnataka Govt. service tax.

Looking for detailed breakdown? Refer the explanation in the 16th July earning. You will get the idea.

13th June: Actual trip amount ₹1456.01
                   Earning on the day : 
₹3,293.21



13th June | Monday

14th June: Actual trip amount ₹1878.72
                   Earning on the day : 
₹4213.05


14th June | Tuesday


15th June: Actual trip amount ₹2241.68
                   Earning on the day : 
₹4668.94


15th June | Wednesday

16th June: Actual trip amount ₹1919.46
                   Earning on the day : 
₹4151.18


Detailed Break down :
>> My driver took 10 trips that day and collected ₹1919.46 from the riders.
>> So UBER will take approx. 24.524% for itself and for service tax.
>>Which means my actual earning was  (₹1919.46 - 24.524%) = 1448.73 
>> Now if you refer the Incentive plan at the beginning of the post, I qualify for "Get Rs. 5500 BG for Rs. 1440 earnings"
>> So I should get at least ₹5500.00 irrespective of how many trips my driver took or how much amount my driver collect surplus to 1440 that day.
>> Now deduct approx 24.524% from the 5500, So the amount would be 4151.18 which you see in here as my actual earning that day.
                 

16th June | Thursday

17th June: Actual trip amount ₹1988.46
                   Earning on the day : 
₹4223.87


17th June | Friday

18th June: Actual trip amount ₹1978.13
                   Earning on the day : 
₹4139.96

18th June | Saturday

19th June: Actual trip amount ₹2349.63
                   Earning on the day : 
₹4635.78


19th June | Sunday


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About Nihar Pradhan

An Entrepreneur at heart, Likes to be "Free but Busy" ...
Love everything about digital contents and the freedom.

28 comments:

  1. Who pays for diesel and driver??

    ReplyDelete
  2. Uber/Ola only provide their platform (App). Everything else : diesel, driver, internet, call charges we have to bear.

    ReplyDelete
  3. Hi ..Am now in a plan to take a car and drive in hyderabad...With the present increased fleet ,is it still an advisable business?Within what time can I expect my returns?

    ReplyDelete
    Replies
    1. I also want to know how much earnings i can expect from the uberprenuership.

      Delete
  4. Hi,

    The calculations are not tallying. In the detailed example, you calculated earning based on actual trip amount and arrived at slab. Then , actual earning that day = 5500 - 24.524%. For this particular calc, 4151.18 is correct. But where is the actual earning was (₹1919.46 - 24.524%) = ₹1448.73 . This has to be added to 4151.18 .. rihgt(thats what you mentioned above) . but thats not added.

    Alos, when I checked the slabs(all frm this blog page) and your other days examples, never any amount tallied to yours. Can you please recheck and let us know.

    ReplyDelete
  5. You have misunderstood the term "Business Guarantee".... BG means the amount of business which is guaranteed by UBER so from that amount they will deduct 24.524%(20%commission and 5%tax). However, commission and tax obviously will be deducted from actual amount of business.

    To simplify, as per the above example,
    The Incentive Plans were as follows(after deducting 24.5% from BG amount) :
    a) Get Rs. 6340 for Rs. 2360 earnings
    b) Get Rs. 5132 for Rs. 1980 earnings
    c) Get Rs. 4528 for Rs. 1750 earnings
    d) Get Rs. 4151 for Rs. 1440 earnings
    e) Get Rs. 2868 for Rs. 1220 earnings
    f) Get Rs. 1887 for Rs. 840 earnings
    g) Get Rs. 905.7 for Rs. 460 earnings.

    ReplyDelete
  6. What if there is new taxi company like ola or uber,which pays driver 90% of the whole bill and they takes 10%. So the drivers should work in this type of company. For example the driver takes 1100 in whole day so the driver gets 990 and that company earns 110. So driver works on this type of company. Plss comment.....

    ReplyDelete
  7. SO the fare amount are just for calculation purpose
    i.e. 1919.46 - 24.524% = 1448.73 for calculation of BG applicable.

    The actual income of the Driver is only 5500 - 24.524% = 4151.18

    and any cash amount collected from the customer by driver will be deducted.
    That means the payment to driver will be as follows:

    Cash collected from Customer - 1448.73
    BG to be paid by Uber = 4151.18 - 1448.73 = 2702.45

    Kindly correct me if i am wrong

    Prospective uberpreneur

    ReplyDelete
  8. Hi Please refer to this article on understanding BG in Uber
    http://www.uberguru.in/2016/07/understanding-bg-business-guarantee-and.html

    ReplyDelete
  9. Hi Nihar

    Do you have to commit on the slab when you register with Uber as a driver?

    Also, if you do not reach the daily slab do they have a penalty clause?

    Best Regards

    ReplyDelete
  10. No you won't be facing any penalty or anything of that sort.. With Uber You are your own Boss..

    ReplyDelete
  11. Hi Nihar,

    Am plannin to buy a car & attach with uber in hyderabad by hiring a driver.Can you suggest if I need to register as a sole proprietorship before starting the business as i can claim deduct all expenses for tax purposes compared to an individual where entire amount paid by uber will be taxable

    ReplyDelete
  12. Hi Nihar,

    I am from Mumbai. And i am having my personal car and i am driving it since 2009. Now i am planning to buy commercial car and drive. But my problem is that i dont know each and every route of mumbai. And google is not accurate everytime. Do uber provides routes choosen by customer. Is it still smart move to invest in it

    ReplyDelete
  13. Hey There, Yeah I admit that Google Map is not 100% accurate all the time. But yeah you can always follow the routes asked by rider / customer in case you are not sure from your end.

    ReplyDelete
  14. Hi nihaar ....my car is running in ola I am in loss with ola ...now j want to attach my car in uber ...I am in big loss I need ur guidance..can u share ur contact no with me ...gagan

    ReplyDelete
    Replies
    1. Please fill the contact form here :
      http://uberolaguru.blogspot.in/2016/06/what-is-guru-plus-how-to-avail-it.html

      Delete
  15. Hi Nihar,
    I am planning to attach a car in Uber. Can you please tell me current incentives plan by Uber.
    Thanks

    ReplyDelete
  16. Hi There,
    For Uber incentive plans in different cities, please goto : http://www.uberguru.in/search/label/Incentives

    ReplyDelete
  17. Hi Nihar.

    The explanation you provided here is absolutley commendable. But still i am not sure whether to get a cab attached to Uber.


    I am from Delhi and i wish to get a cab attached to uber, which will be run by a driver.

    So, its best to get the advice about it from the person already working with that pattern.

    I wish to know about it whether i should go with the attachment of the cab or not. As reading about it online is actually confusing me so much.

    1 simple question what minimum amount i can expect per day from my cab on a very bad day. (You can answer this, as u might have faced this atleast once)


    Thanks in advance.

    ReplyDelete
  18. I can answer that only when you can explain what a 'bad day' means to you. Like some one drives for 2-3 hours in a day due to some personal problem or someone who is online for the whole time and still fails to reach the target.

    ReplyDelete
  19. I meant that the driver remain online the whole time and still fails meet the even the minimum target.

    ReplyDelete
  20. It never happens that driver remained online for 12 hours and he didn't even get enough rides to hit the min. BG. I will say on a very bad day when there is less demand you can at-least hit 840 earning target.

    ReplyDelete
  21. Hi sir
    I am from Bangalore 1 week back i purchased new Ritz car . now I want attach to ola or uber . which is better ola or uber ? I am confused .please help

    ReplyDelete
    Replies
    1. Personally I prefer Uber. You can always attach with Both and see by yourself.

      Delete
  22. Which one gives more incentives uber or ola??

    ReplyDelete
    Replies
    1. If you consider incentive its uber as in Ola fare collected from Rider itself is more.

      Delete
  23. Hello Nihar,
    I am planning to attach my car to Uber here in Pune. Is Pune a growing market when considering about this business?
    How much earnings can I expect per month, given that I'm starting in March 2017?

    ReplyDelete
    Replies
    1. I have heard from few partners that Pune partners that they could reach 2300 NMG in weekdays and 4000 NMG in weekends, which is low comparing with other cities but still profitable.

      Delete

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