Is it Profitable to Own a Car for Ola, Uber, or Taxi ForSure in India as of 2019?

The decision to own a car and partner with ride-sharing services such as Ola, Uber, or Taxi ForSure is a common one among aspiring entrepreneurs in India. However, the reality often falls short of the initial expectations. As of 2019, this article delves into the profitability and challenges of this business model.

Ownership vs. Driving: Choosing the Best Route

While purchasing a car for the sole purpose of partnering with ride-sharing services can be attractive, it is strongly advised against. According to industry insights, owning a car for such a venture would yield little profit and might even result in financial losses. The reason is straightforward: none of these companies are making profits; they are booking losses year on year. They rely on drivers and partners to absorb these losses.

Driving the Car Yourself is Best

Instead of owning a car, it is more profitable to drive the car yourself. This approach not only maximizes earnings but also ensures direct control and operation of the vehicle. While you might earn a bit less overall, the lack of additional costs related to purchasing, maintaining, and financing a car can significantly boost your net profit.

Realistic Earnings and Challenges

The common narrative of earning between 40,000 to 90,000 INR per month as a driver for Ola or Uber/UberEats (TFS) is often misleading. In reality, making even 10,000 to 20,000 INR per month is considered a better outcome. This is based on extensive experiences and anecdotal evidence from active drivers in the industry. Factors such as vehicle maintenance, fuel costs, and inefficiencies in the system can erode earnings significantly.

Operational Challenges and Costs

Owners of ride-sharing vehicles face numerous operational challenges and escalating costs. These challenges include:

Rigid Routes and Traffic Delays: In regions with poor infrastructure, such as Kochi, Kerala, drivers often face heavy traffic jams and road closures. For instance, after a major flooding event, the city saw road conditions deteriorate to the point where an additional 20 minutes of delay for a check at a railway gate was incurred. During this period, the driver is charged for gasoline expenditure, yet the wait is not counted as downtime, leading to significant financial losses. Unfair Fare Reviews: Passenger reviews can penalize drivers who face delays due to unforeseen circumstances. A trip that took 50 minutes to complete due to delays and additional care for a pregnant passenger resulted in earnings of 146.83 INR, but fuel expenses alone amounted to over 150 INR, leading to a loss. These systems can be misleading and unfairly penalize drivers. Cleaning Costs: Drivers must consistently maintain a clean and hygienic vehicle to avoid penalties. However, spillages and food odors caused by passengers can disrupt the driver's ability to focus on safe driving and can result in fines. interfacing with Unruly Passengers: Dealing with intoxicated or aggressive riders is an added strain on drivers. Above all, the frustration of seemingly endless contributions to society without adequate compensation is a common sentiment among drivers.

Conclusion

While the concept of becoming an Uber, Ola, or Taxi ForSure driver can seem lucrative, the realities of the business are far more challenging. For those seeking to enter the market, it is advisable to consider driving as an independent contractor rather than purchasing a vehicle to partner with these platforms. Utilizing a vehicle you have already or leasing a vehicle might be more financially viable.

Ultimately, the shared economy and ride-sharing services are highly competitive and dynamic. Drivers must be prepared to navigate these challenges and find ways to optimize their earnings and minimize costs.