Part-time Job: Should You Drive For Uber Or GrabCar? (Updated)

“I love to spend some me-time on the road while being stuck in traffic,” said no one ever.

Based on a recent survey by GlobalWebIndex, 55% of the 1,050 Malaysians polled, said they spend more time in traffic congestions compared to last year.

This makes any convenient, safe and affordable public transportation a boon for Malaysians, because no one wants to be behind the wheel, bumper-to-bumper, every single day. So, what better way to earn some cash offering a service that most Malaysians need?

With Uber and Grab launched in Malaysia in recent years, Malaysians can now make use of these platforms to earn some extra cash.

You need not quit your job to work as Uber or GrabCar drivers, however, with limited time on your hand, you will need to figure out which company pays you more for your time.

Which has higher fare rates & commission

Here’s a comparison of the fare rates and commission for UberX and GrabCar Economy:

	UberX	GrabCar Economy
Commission	25%	20%
Base Fare	RM0.95	RM1.00
Per KM Rate	RM0.60	RM1.30*
Per Minute Rate	RM0.25	RM0.00

* All fares are subjected to flexible pricing due to demand and supply within a certain duration or area.

Based on the basic fare structure above, without per minute rate, GrabCar will be more profitable when the traffic is smooth (read: non-peak hours). However, that is rarely the case in the Klang Valley, hence UberX may be a better platform to earn more when you are chauffeuring passengers around in slow and heavy traffic.

Another significant difference between the two platforms are, during peak hours Uber practises price surging. This happens when many people are trying to request a ride at the same time and the fares surge for a typical duration of a few minutes.

Uber drivers may be able to earn more if they drive during peak hours, where fare surging is common. However, Uber also charges higher commission at 25%, while GrabCar’s commission is only 20%.

How much can you earn based on the same distance and duration of trip for both UberX and GrabCar Economy?

Here’s the breakdown for a trip between 1 Utama Shopping Centre and KL Sentral. The distance via LDP and SPRINT Highway is 14.3km.

Non-peak hours with smooth traffic – about 21 mins

	UberX	GrabCar Economy
Base fare	RM0.95	RM1.00
Per KM rate	14.3km x RM0.60 = RM8.58	14.3km x RM1.30 = RM18.59
Per minute rate	21 mins x RM0.25 = RM5.25	RM0.00
Total earnings before commission	RM0.95 + RM8.58 + RM5.25 = RM14.78	RM1.00 + RM18.59 = RM19.59
Total earnings after commission	RM14.78 – 25% = RM11.09	RM19.59 – 20% = = RM15.67

Peak hours with heavy traffic – about 40 mins

	UberX	GrabCar Economy
Base fare	RM0.95	RM1.00
Per KM rate	14.3km x RM0.60 = RM8.58	14.3km x RM1.30 = RM18.59
Per minute rate	40 mins x RM0.25 = RM10.00	RM0.00
Total earnings before commission	Without price surge RM0.95 + RM8.58 + RM10.00 = RM19.53 With price surge (1.5x) RM19.53 x 1.5 = RM29.30	Without price surge RM1.00 + RM18.59 = RM19.59 With price surge (1.5x)  RM19.59 x 1.5  = RM29.38
Total earnings after commission	Without price surge RM19.53 – 25%  = RM14.65 With price surge (1.5x) RM29.30 – 25%  = RM21.97	RM19.59 – 20% = RM15.67

Based on the simple calculations above, GrabCar is definitely better if the time you can commit to driving for them is during non-peak hours, and traffic is smooth. However, if you are working regular 9-to-5 job, you will most likely be able to drive in the morning and evening rush hours.

If that is the case, there’s not much difference between Uber and GrabCar.

How about drivers’ incentives?

Drivers for both Uber and GrabCar do not just earn the fares minus commissions. These companies also offer incentives to their drivers, and these incentives are really where the money is.

Note: incentives change from time to time so it is advisable that you keep updated through their blogs, where they’ll post the latest incentives.

Below are the latest at writing time but you will still need to carefully strategise your working hours to earn the most bucks:

Uber Earnings Boost

This new scheme replaces the Tier 1 incentive and according to Uber, it is meant to keep guarantees super simple.

So how this work is the Uber app will show all areas with high demand and if you drive during those busy hours, you’ll earn extra per trip. Also the earnings boost is not subject to the 25% service fee.

In the event when there is both surge and Uber Earnings Boost, Uber will always pay out the higher multiplier out of the two to make sure that you maximise your potential earnings while driving.

Based on the example of a trip between 1 Utama Shopping Centre and KL Sentral, via LDP and SPRINT Highway (14.3km), a rough breakdown would be something like this:

Rider’s fare:	RM14.78
Earnings guarantee:	RM14.78 x 1.8 (earnings boost) = RM26.60
Total received:	RM11.09 (fare of RM14.78 less 25% service fee) + RM15.52 (earnings boost) = RM26.61

Now, let’s have a look at what GrabCar is offering:

The Grab-Pro Programme

To be eligible for incentives, drivers must fulfil these criteria:

	UberX	GrabCar Economy
Trip acceptance rate:	None	A minimum of 88%
Driver cancellation rate:	None	Maximum cancellation of 10%
Average driver rating:	None	4.4 stars and above.
Trip completion rate:	None	50% of busy areas.
Applicable locations:	Area with UBER Boost	KLIA, KLIA2 and Klang Valley.

	UberX	GrabCar Economy
Hours	Mon – Fri  6am – 10am	Mon – Fri  6am – 10am
Total no. of trips per day	1.5 trips x 4 hours  = 6 trips	1.5 trips x 4 hours  = 6 trips
Total earnings from  fare per day	RM14.10* x 6 trips  = RM84.60	RM15* x 6 trips  = RM90
Total incentive per day	Earning boost RM84.60 x 1.5  = RM126.90 4 hours x RM30  = RM120 Commission deduction RM84.60 – 25% = RM63.45 Total incentive RM42.30 + RM63.45 = RM105.75	Gross incentive:  Mon = RM138 Tue – Fri = RM116 = RM120.40 Net incentive: RM120.40 = RM96.32
Total earnings from  fare per month	RM105.75 x 20 days = RM2,115	RM96.32 x 20 days  = RM1,926.40

* Assuming earning per trip at RM18.80 (before deduction of commission). 
^ Based on this example, GrabCar driver will only be eligible for Tier 4 incentive for Friday.

The trips calculated for incentive is only based on the weekly unique passenger count.

Yes, there seems to be quite a lot of terms and conditions to contend to for  GrabCar. The new incentive programme by UberX seems to be more lucrative for the driver as the incentive is not deductible for commission.

The drawback to the new Uber Earning Boost is, you don’t get incentive all the time. Drivers will receive and email detailing the Earning Boost hours for the week, while the app only shows the hours for the day. This means less flexibility for the drivers to maximise their earnings, especially if they have a full-time job.

The other factors

iMoney has always advocated value. The same goes to your side-income gig.

If by earning an additional RM50 you get more headaches, it’s simply not worth your trouble. Therefore, instead of just evaluating the money you can potentially earn, you should also consider the other factors that come with driving people around with both Uber and Grab.

Passenger rating

Sometimes we meet bad drivers, while other times we meet terrible passengers. This goes both ways, and Uber recognises this. To protect its drivers, the app allows both passengers and drivers to rate each other.

Plus the new incentive programme from Uber does not have as many requirements as GrabCar.

Grab, on the other hand, only allows passengers to rate the drivers. Uber drivers can view the rating of a passenger before deciding to accept the job.

Destinations

One downside to Uber is, its drivers are unable to view the destination before accepting a job. This makes it hard for drivers to plan their trips and earnings when they are online.

Unlike Uber, Grab gives you the destination of your passenger, so you will be able to gauge the estimated fares, and also avoid destinations that you are uncomfortable going to. This can give you a clearer idea on the driving strategy.

With today’s high cost of living, every ringgit counts. To keep up with a comfortable lifestyle, you may need a source of extra income, and driving for Uber and Grab may be your answer to that.

Other than analysing the earnings schedule and rates, it also pays to balance whether the earnings will cover all your petrol and car maintenance cost at the end of the day.

Fares and incentives for both platforms change periodically, and you may need to reconsider which platform to drive for in order to make the most of your time.

If you’ve been or still an Uber or Grab driver, let us know if this is a worthwhile side-income gig in the comment section below!

Source

Does It Still Make Sense To Be A Ride-Sharing Driver?

About 60,000 Malaysians take to the streets every day to just ferry anyone they see on their smartphones wanting to get from Point A to Point B.

That 60,000 makes up the workforce behind ride-sharing companies Uber and Grab, but according to government data, only 20% of these are working full-time, meaning roughly 40,000 are part-timers while holding down permanent jobs.

We have written and done the maths about how these ride-sharing services are a great way for Malaysians to hop on the side-income wagon and earn some extra cash to meet the rising cost of living and debt obligations, among others.

But with higher fuel price, should Malaysians continue to participate in such programmes? Grab has said the fuel price hike would not see an increase in fares, citing the affordability and convenience of their services to passengers and the welfare and livelihood of drivers.

The ride-sharing firm added that they may consider “dynamic pricing” to meet the demand of high-end areas during peak hours and also may consider fuel rebates and car maintenance (deals) for its drivers.

Question is, what do the drivers have to say?

But, first, an oily recap

Malaysia decided to end its decades-old subsidies for gasoline and diesel in 2014 amid falling oil prices, ending the country’s diet on cheap fuel.

Malaysians no longer enjoy low fuel prices after the government decided to remove subsidies in 2014.

Since then, the widely used RON95 and RON97 grade of gasoline and diesel has been priced using a managed float system.

When the float system was introduced, Moody’s Investors Service said the decision to shift to a more flexible pricing system was a positive step for Malaysia. It believed that a decline in global fuel prices would give countries such as Malaysia a chance to scale back subsidies that have contributed to fiscal deficits.

But after three years, Malaysians are complaining that fuel prices are unmanageable, prompting the government to announce a ceiling price that will be announced weekly, beginning March 29.

Caught in between these developments, however, are Malaysians who have seized the opportunity of becoming ride-sharing drivers to either earn a living or just to pocket some side-income.

Fuel prices have seen a steady increase since January and at writing time, the cost of a litre of RON95 is RM2.30; RON97, RM2.60; and diesel, RM2.20.

Feedback from behind the wheel

Val Chong who drives for Grab on a full-time basis says his earnings are sufficient to cover fuel costs. He drives a MyVi 1.3 and averages 50 hours a week and covers about 2,000km a week.

“My gross income, including incentives and bonus, is roughly RM1,800 a week,” he tells iMoney through email. From that amount, he sets aside about RM300 for fuel.

Syahrin, a part-time driver with Grab, says on a full week of driving (Monday to Friday), he spends around RM50 for diesel and nets an average of RM200 a week after deductions, including on fuel. He drives a Hyundai Starex.

But Abdul Rahman, who has been on both ride-sharing platforms on a part-time basis, begs to differ. “It is enough to cover fuel costs but sometimes you don’t have income after that,” he tells iMoney.

Some of Uber’s promotions have been deemed unfriendly for drivers.

Rahman drives a Suzuki Swift and logs in 20 hours a week. He says he earns between RM300 and RM400 a week, after deducting costs such as Grab or Uber fees, petrol and toll. He consumes about RM300 a week on fuel while on duty.

Rahman believes that ride-sharing companies should do more for drivers in matching the fuel prices as currently the promotions attract riders but are a bane to drivers. He cites the RM0.90 deals for trips below RM4km that Uber recently rolled out.

“These promotions just torture the driver,” he says. Syahrin also believes more could be done especially for Uber drivers which he says offers the lowest pricing for riders but imposes a high fee for drivers.

That however has not deterred Syahrin from using the service which he says does use from time to time especially when he is around the Kuala Lumpur International Airport.

No longer a viable income source?

Rahman believes that ride-sharing is no longer a viable source of part-time income. “There’s too much competition these days,” he says, alluding to the popularity Grab and Uber has received through the years.

Chong, however, believes that from an economics point of view, it is still a viable source of income, especially for part-timers.

Regular upkeep of your car will help maximise fuel savings when you are earning from ride-sharing.

“But one should consider his or her own health and take into consideration social and family life,” he says.

On dealing with the fluctuating fuel prices, Chong says he doesn’t deploy any specific savings strategy but ensures that his car is serviced timely and tyre pressures are optimum. He also does not speed and he switches off the air conditioning whenever the weather permits and when there are no passengers.

He adds that before one should consider part-timing with a ride-sharing company, one has to factor in the wear and tear to the car and the extra maintenance costs from the increased frequency in car servicing such as oil change, etc.

“But I still believe earnings are sufficient in the interim,” he says.

Ride-sharing services offer a viable and easy platform for Malaysians to earn some extra cash. However, with the rising fuel prices, drivers will need to be more careful in balancing both cost and profit.

Other ways to help reduce fuel consumption should also be considered. If you are considering ride-sharing full time, you can consider installing a Natural Gas Vehicle (NGV) tank to reduce the cost.

Drivers can also leverage on credit cards that offer high rewards or cashback for petrol to subsidise some of that cost and maximise the earnings.

At the end of the day, lower income from your ride-sharing gig is better than no side-income at all.

Source

Part-time Job: Should You Drive For Uber Or GrabCar?

“I love to spend some me-time on the road while being stuck in traffic,” said no one ever.

Based on a recent survey by GlobalWebIndex, 55% of the 1,050 Malaysians polled, said they spend more time in traffic congestions compared to last year.

This makes any convenient, safe and affordable public transportation a boon for Malaysians, because no one wants to be behind the wheel, bumper-to-bumper, every single day. So, what better way to earn some cash offering a service that most Malaysians need?

With Uber and Grab launched in Malaysia in recent years, Malaysians can now make use of these platforms to earn some extra cash.

You need not quit your job to work as Uber or GrabCar drivers, however, with limited time on your hand, you will need to figure out which company pays you more for your time.

Which has higher fare rates & commission

Here’s a comparison of the fare rates and commission for UberX and GrabCar Economy:

	UberX	GrabCar Economy
Commission	25%	20%
Base Fare	RM0.95	RM1.00
Per KM Rate	RM0.60	RM1.30*
Per Minute Rate	RM0.25	RM0.00

* All fares are subjected to flexible pricing due to demand and supply within a certain duration or area.

Based on the basic fare structure above, without per minute rate, GrabCar will be more profitable when the traffic is smooth (read: non-peak hours). However, that is rarely the case in the Klang Valley, hence UberX may be a better platform to earn more when you are chauffeuring passengers around in slow and heavy traffic.

Another significant difference between the two platforms are, during peak hours Uber practises price surging. This happens when many people are trying to request a ride at the same time and the fares surge for a typical duration of a few minutes.

Uber drivers may be able to earn more if they drive during peak hours, where fare surging is common. However, Uber also charges higher commission at 25%, while GrabCar’s commission is only 20%.

How much can you earn based on the same distance and duration of trip for both UberX and GrabCar Economy?

Here’s the breakdown for a trip between 1 Utama Shopping Centre and KL Sentral. The distance via LDP and SPRINT Highway is 14.3km.

Non-peak hours with smooth traffic – about 21 mins

	UberX	GrabCar Economy
Base fare	RM0.95	RM1.00
Per KM rate	14.3km x RM0.60 = RM8.58	14.3km x RM1.30 = RM18.59
Per minute rate	21 mins x RM0.25 = RM5.25	RM0.00
Total earnings before commission	RM0.95 + RM8.58 + RM5.25 = RM14.78	RM1.00 + RM18.59 = RM19.59
Total earnings after commission	RM14.78 – 25% = RM11.09	RM19.59 – 20% = = RM15.67

Peak hours with heavy traffic – about 40 mins

	UberX	GrabCar Economy
Base fare	RM0.95	RM1.00
Per KM rate	14.3km x RM0.60 = RM8.58	14.3km x RM1.30 = RM18.59
Per minute rate	40 mins x RM0.25 = RM10.00	RM0.00
Total earnings before commission	Without price surge RM0.95 + RM8.58 + RM10.00 = RM19.53 With price surge (1.5x) RM19.53 x 1.5 = RM29.30	Without price surge RM1.00 + RM18.59 = RM19.59 With price surge (1.5x)  RM19.59 x 1.5  = RM29.38
Total earnings after commission	Without price surge RM19.53 – 25%  = RM14.65 With price surge (1.5x) RM29.30 – 25%  = RM21.97	RM19.59 – 20% = RM15.67

Based on the simple calculations above, GrabCar is definitely better if the time you can commit to driving for them is during non-peak hours, and traffic is smooth. However, if you are working regular 9-to-5 job, you will most likely be able to drive in the morning and evening rush hours.

If that is the case, there’s not much difference between Uber and GrabCar.

How about drivers’ incentives?

Drivers for both Uber and GrabCar do not just earn the fares minus commissions. These companies also offer incentives to their drivers, and these incentives are really where the money is.

Note: incentives change from time to time so it is advisable that you keep updated through their blogs, where they’ll post the latest incentives.

Below are the latest at writing time but you will still need to carefully strategise your working hours to earn the most bucks:

Uber Earnings Boost

This new scheme replaces the Tier 1 incentive and according to Uber, it is meant to keep guarantees super simple.

So how this work is the Uber app will show all areas with high demand and if you drive during those busy hours, you’ll earn extra per trip. Also the earnings boost is not subject to the 25% service fee.

In the event when there is both surge and Uber Earnings Boost, Uber will always pay out the higher multiplier out of the two to make sure that you maximise your potential earnings while driving.

Based on the example of a trip between 1 Utama Shopping Centre and KL Sentral, via LDP and SPRINT Highway (14.3km), a rough breakdown would be something like this:

Rider’s fare:	RM14.78
Earnings guarantee:	RM14.78 x 1.8 (earnings boost) = RM26.60
Total received:	RM11.09 (fare of RM14.78 less 25% service fee) + RM15.52 (earnings boost) = RM26.61

Now, let’s have a look at what GrabCar is offering:

The Grab-Pro Programme

To be eligible for incentives, drivers must fulfil these criteria:

	UberX	GrabCar Economy
Trip acceptance rate:	None	A minimum of 88%
Driver cancellation rate:	None	Maximum cancellation of 10%
Average driver rating:	None	4.4 stars and above.
Trip completion rate:	None	50% of busy areas.
Applicable locations:	Area with UBER Boost	KLIA, KLIA2 and Klang Valley.

	UberX	GrabCar Economy
Hours	Mon – Fri  6am – 10am	Mon – Fri  6am – 10am
Total no. of trips per day	1.5 trips x 4 hours  = 6 trips	1.5 trips x 4 hours  = 6 trips
Total earnings from fare per day	RM14.10* x 6 trips  = RM84.60	RM15* x 6 trips  = RM90
Total incentive per day	Earning boost RM84.60 x 1.5  = RM126.90 4 hours x RM30  = RM120 Commission deduction RM84.60 – 25% = RM63.45 Total incentive RM42.30 + RM63.45 = RM105.75	Gross incentive:  Mon = RM138 Tue – Fri = RM116 = RM120.40 Net incentive: RM120.40 = RM96.32
Total earnings from fare per month	RM105.75 x 20 days = RM2,115	RM96.32 x 20 days  = RM1,926.40

* Assuming earning per trip at RM18.80 (before deduction of commission). 
^ Based on this example, GrabCar driver will only be eligible for Tier 4 incentive for Friday.

The trips calculated for incentive is only based on the weekly unique passenger count.

Yes, there seems to be quite a lot of terms and conditions to contend to for  GrabCar. The new incentive programme by UberX seems to be more lucrative for the driver as the incentive is not deductible for commission.

The drawback to the new Uber Earning Boost is, you don’t get incentive all the time. Drivers will receive and email detailing the Earning Boost hours for the week, while the app only shows the hours for the day. This means less flexibility for the drivers to maximise their earnings, especially if they have a full-time job.

The other factors

iMoney has always advocated value. The same goes to your side-income gig.

If by earning an additional RM50 you get more headaches, it’s simply not worth your trouble. Therefore, instead of just evaluating the money you can potentially earn, you should also consider the other factors that come with driving people around with both Uber and Grab.

Passenger rating

Sometimes we meet bad drivers, while other times we meet terrible passengers. This goes both ways, and Uber recognises this. To protect its drivers, the app allows both passengers and drivers to rate each other.

Plus the new incentive programme from Uber does not have as many requirements as GrabCar.

Grab, on the other hand, only allows passengers to rate the drivers. Uber drivers can view the rating of a passenger before deciding to accept the job.

Destinations

One downside to Uber is, its drivers are unable to view the destination before accepting a job. This makes it hard for drivers to plan their trips and earnings when they are online.

Unlike Uber, Grab gives you the destination of your passenger, so you will be able to gauge the estimated fares, and also avoid destinations that you are uncomfortable going to. This can give you a clearer idea on the driving strategy.

With today’s high cost of living, every ringgit counts. To keep up with a comfortable lifestyle, you may need a source of extra income, and driving for Uber and Grab may be your answer to that.

Other than analysing the earnings schedule and rates, it also pays to balance whether the earnings will cover all your petrol and car maintenance cost at the end of the day.

Fares and incentives for both platforms change periodically, and you may need to reconsider which platform to drive for in order to make the most of your time.

If you’ve been or still an Uber or Grab driver, let us know if this is a worthwhile side-income gig in the comment section below!

Source