FAQs

Understanding BG (Business Guarantee) and incentive structure of Uber and other cab Aggregators





Lets explain this by taking a simple example
Image Source
16th June 2016: Actual trip amount ₹1919.46
                            Earning on the day : ₹4151.18

The Incentive Plans were as follows : 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
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 plans above, 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.

>> Let say from my total 1919.46 I have collected 1000 as cash (collected and kept) and rest 919.46 as Paytm or other online payments. So total amount that will be credited to my account will be 4151.18 - 1000 = 3151.18.                 


Understanding BG (Business Guarantee) and incentive structure of Uber and other cab Aggregators

Drop your queries down there, in case you have one.



About Nihar Pradhan

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

28 comments:

  1. I am surprised by the amount uber is paying. It makes me think how uber is earning and making profit. Can you explain me how uber is making profit. Because such a business model seems to be fraud sometimes.

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  2. I will suggest you to contact Mr. Travis Kalanick. ha ha...

    ReplyDelete
    Replies
    1. Other than these incentives are there any other payment given to the driver.

      Delete
  3. I will rather say, Uber runs on Business Guarantee and not incentives. What ever cash you collect from riders you keep them. Uber pays you toll fees what so ever. You become part of Uber club to avail insurance beside other benefits.

    ReplyDelete
    Replies
    1. Hi,
      Does uber have any financing plans for purchasing a vehicle.
      I am planning to buy a vehicle and run it by a driver known to me in Bangalore.Is this still profitable ?He will work approx. 10 hours a day.
      How much regularly they change BG incentive structure ?

      Thanks in advance,

      Delete
    2. Yes Uber does have a vehicle lease plan.

      27,000 is the down payment
      Repayment : 5,954 per week for 3 years
      Contact the following nos. for details :
      9148439782
      9901164753
      9148439810

      Delete
  4. I think calculation have problems or they are making fool, because how come they deduct two times the 24.524% ( 1st they deducted and bring down your actual fare amount and later they again deducted 24.524% from the final payable amount. This is a pure case of double taxation. If some one here is CA or accounts expert then please throw some knowledge on my raised query, Thanks in advance

    ReplyDelete
    Replies
    1. You have mis understood 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. 4528for 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.


      Reply for more clarification :)
      -Dhairya.

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    2. So does that mean for the example cited above, my net earnings would be Rs 4151 + Rs 1448 = Rs 5599

      Delete
    3. No, you get 4151 only. That's how business guarantee works.

      Delete
    4. Still it is wrong to deduct 24% two times, no matter it is actually deducted 1 time, but for calculations they deducted two times which brings down your earning calculation by two times, it is not fair from any mathematical calculation point of view. I hope educated people or maths expert must intervene in this matter. They are making fool by deducting two times, because most of drivers/ partners are not very well educated in this business, its all about calculation game its game of mathematics. maths experts can understand my point very clearly.

      Delete
  5. Hey,

    Is there any specific list of cars that I can attach in Uber or
    is it that (any brand new car/well-maintained used car) can be attached in uber?

    For example, can I attach my brand new RENAULT KWID in UBER or OLA ?

    Thank you.

    ReplyDelete
  6. Hi There,
    The car (to be attached to Uber)can be of any make and model in good condition, manufactured in 2008 or later. Remember riders will be rating their experience on a trip with you - so keep it classy!

    ReplyDelete
  7. When do Uber send the pay statements? I mean on which day of the week? Another question is how do we change the password for the http://Uber.partners.com portal and how do we update our email address? Thanks

    ReplyDelete
    Replies
    1. Uber sends payment every Thursday but it updated in the partner portal every Tuesday (2 days prior to actual payment)
      Get Answer to your other question here : http://www.uberguru.in/2016/12/uber-partner-portal-q-live-blog.html

      Delete
  8. Sir Actully i want to join UBER but its very hard for me to understand your incentives plan so plz kindly provide me your help line no.

    ReplyDelete
  9. If while driving on a day I collect 6000 as fare out of X number of trips. What would be my actual earning for that day?

    ReplyDelete
    Replies
    1. Your actual earning should be 75.69 % of 6000.

      Delete
  10. can you please throw some light on Acceptance rate. If the acceptance rate is less than 85% will we still get the incentive

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  11. As per terms and conditions of Uber, which clearly states that you should have acceptance ratio of 85 % or more to receive incentives. So why take chance.
    Before you come online make sure that you actually going to/ want to drive. You don't have to worry about acceptance ratio if you follow this one thing.

    ReplyDelete
  12. Thank you Nihar, for clarification. I had lots of confusion , i am almost understood the business model, I am planning join with UBER soon.

    Anwar: 9768189896

    ReplyDelete
  13. That's wonderful.. Can you help me with the Ola business too? It will be great..

    ReplyDelete
  14. Uber have any registered offices at kerala,pls give an contact number

    ReplyDelete
  15. Hi Nihar, can I reject a trip? What will be the procedure for that? I need to convey it to call center or to the rider?

    ReplyDelete
  16. Where is Daily BG updated in the earning tab? and what are the conditions to be eligible.

    And is this still valid in Bangalore, Jan 2017 ?

    ReplyDelete
  17. Also, Acceptance rate, is it Weekly Dependant? or Lifetime?

    And the acceptance there is a Different in Fleet APP and a different one in Driver App for the same driver, which one is considered?

    ReplyDelete
  18. i want to by new car and attach it with uber. what is procedure.

    ReplyDelete

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