The Economics of Using Uber in India, For Drivers, Passengers and the Company

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I’ve been taking a lot of Ubers and Olas to work. More Uber than Ola [1], and I get phenomenal conversations because I can speak in Kannada, which is apparently a rare thing in Bangalore, looking at the number of drivers who seem to be delighted.

Uber, Startups, Funding, Uber Economics, Ola, Wallet

The economics, from the driver’s angle, is fascinating. The first few things you realize is:

  • The drivers are not “dumb”. Like I’ve found with auto drivers and politics (excellent awareness), the economics is plain obvious to the Uber drivers and they aren’t headless chickens.
  • The vast majority of them are honest drivers who actually call each trip a “duty”. But each one is prone to a few points of “abusing the system”. We’ll get to that.
  • There is complete acceptance that the current economic situation is extremely abnormal, and they are all scared of things changing .
  • Most drivers are on multiple networks – Uber, Ola, TaxiForSure – and there is very little loyalty other than to the money.
  • They don’t hesitate to tell you they’re being mercenary, and totally know that if I am paying X and they are getting 3X, Uber is paying the rest. But they won’t take any less.

Let’s take a deeper look into the economics of the business.

Note: Thanks for the great response! We also discuss some counterpoints to the arguments here, where we discuss the specifics of car ownership, parking and all that.

[1] I like Uber more because it’s cashless through PayTM or a Credit Card (launched recently). Ola’s cashless system of Ola Money is a waste of time because you can’t use it elsewhere. And drivers hate it to the point many will cancel your trip if you say you’re using it. Plus PayTM offers cash backs on purchases that you can use for Uber.

For the Passenger: The Rs. 7 Per Kilometer is actually Rs. 13.5 per Kilometer

Uber advertises its lowest fare in Bangalore at Rs. 7 per km charge but that is utter bull. For an average 10 km ride in the city, it costs much more:

  • a Rs. 35 base charge that has no free usage, which would be Rs. 3.5 per km.
  • Rs. 7 per kilometer run
  • Rs. 1 per minute as a driver fee. For an average of 3 minutes per kilometer this comes to Rs. 3 per km.

These add up to Rs. 13.5 per kilometer. That’s how much you pay for an auto as well.

Related Links:

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Here’s Why RBI Did Not Allow Uber to Use Single-Factor Authentication to Bill You

Like Uber/Ola, Housing.com Also Raised an Insane Amount of Funds. Whatever Happened to Them in May 2015?!

The economics: Should You Ditch Your Car?

At Rs. 13.5 per kilometer, your car would have to give you a fuel efficiency of 6 per liter for the economics to make any sense. I see comparisons of – oh you pay X for the fuel, Y for the driver cost, Z for the parking…this is utter bullshit. Owning a car means I will drive it; I don’t need a driver (if you do, your economics are different from mine, and I believe people like me are FAR more prevalent). Plus I’ve already paid for the parking – it comes with my house!

The annual costs of a car are tiny nowadays (Rs. 1 per kilometer, assuming Rs. 12,000 service costs for Rs. 12,000 driven). So if my car gives me 12 kms to a liter of petrol, i’m still paying just Rs. 5.5 per km for petrol and Rs. 1 for parking.

Add to this the convenience of owning a car, the ability to get groceries from hypermarkets that can’t or won’t deliver, the ability to drive your kids to a location just 2 minutes away because walking will kill you (welcome to Bangalore, just don’t walk anywhere). And the underappreciated advantage of being able to just up and leave at 6 am to smell the fresh air in the western ghats.

And then, Uber cars are not available when you want them – wait times are upwards of 10 minutes most of the time, unless you’re in a favoured location. Then, there are spikes – if it rains, Uber goes to 1.5x “surge” pricing. All this will not vanish because drivers too have their economics which ensures such practices (long wait times, surge pricing) will continue.

Oh, Uber and Ola will simply not replace cars, even at these “low” costs. I take a Uber even though I own a car only because the cost is low today – I get an airconditioned car for the price of an auto, and I don’t have to find parking if I leave later. (Every day that I leave home early, I take my own car)

For The Driver: You Pay Rs. 100, the Driver Makes Rs. 300: Uber Pays The Rest

I travel about 7 kilometers to office per day. My bill is between Rs. 100-120, given slightly longer than average time to destination. The driver, though, gets nearly Rs. 300 for my ride. How?

  • The Rs. 100 I pay
  • Uber pays Rs. 100 “incentive” per ride
  • If he takes 12-13 rides per day, he gets another Rs. 1,200 which is Rs. 90 per ride

Out of the Rs. 300 he makes, he apparently “pays” Uber 25%. So he makes a net fee of Rs. 225.

This is awesome for him, because:

  • For 12 rides a day, he gets Rs. 1200, plus Rs. 100 per ride incentive = Rs. 1200, plus Rs. 100-150 per ride as a fare = Rs. 1200-1800.
  • That’s about Rs. 3600 – 4200 per day.
  • Of which he pays Rs. 1000 or so to Uber, and nets Rs. 2500 to 3000
  • Most drivers I’ve met say that their target gross number is Rs. 2,000 per day – if they make it they consider it a good day, many just drop out after that. (There’s a lower Rs. 500 incentive for 8 rides, and many make their Rs. 2000 target at that point)
  • That’s about Rs. 60,000 per month for a driver (gross) and net, around Rs. 45,000.

His costs are:

  • Rs. 15,000 as EMI for the car
  • Rs. 10,000 for fuel costs and service
  • Net costs of Rs. 25,000 – they’ll take home Rs. 20,000 or so, which is sweet because it’s about 15% more than they can make as a standalone driver.

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For Uber: This is a Lousy Deal, So Probably Called Marketing Expense

  • Uber only gets what you and I pay. I pay Rs. 100 per ride. If you multiply that by 12 rides, that’s Rs. 1200 that they get, per day, per car. Let’s be nice and say they get Rs. 1,800 at the average of Rs. 150 per ride.
  • The driver, as you can see, makes Rs. 3,000 per day, even after “paying” Uber their fees.
  • So Uber’s paying the rest, at Rs. 1,200 per day of net losses.
  • (Apart from this they pay 14% service tax, and apparently don’t charge the drivers yet, so that’s an extra loss)
  • For 12,000 drivers (this is the average figure I hear in Bangalore from the drivers) that’s Rs. 1.5 crore, or Rs. 15 million per day.
  • In Dollar terms, that’s $250,000 per day.
  • For 30 days, that Rs. 45 crores, or $7.5 million – per month, of losses in Bangalore alone.
  • The annual losses will be around Rs. 500 cr. or more, just short of $100 million. This is not considering any other expenses like marketing or salaries or support.

This is now, when incentives are low. They started with a Rs. 250 incentive per ride, and even higher number-of-rides incentives.

What can Uber do?

  • Hope to reduce incentives. They’ve been trying, but the Rs. 100 is a huge roadblock. People defect to the other subsidized services (Ola, Taxiforsure etc) and even back to chauffered pickup cabs for companies, if they go below that.
  • Hope to increase charges; they would have to up them by 2.5x just to break even (assuming no reduction in driver incomes). I don’t think the market will pay that much. (I wouldn’t)
  • A bit of both? This is unlikely to work – people are very price sensitive and will use Uber only for certain times if prices are higher than an auto. And drivers don’t have that much room for comfort either.

In all the above, there is an unsaid problem, which currently is not a problem.

Related Links:

Counter Arguments On Uber Economics: What About The Cost of Owning a Car, And Other Deeply Insightful Questions

RBI Did not Allow Uber to Bypass Their Mandated 2-factor Authentication; But they Decided to Bring in a Small Change

PayTM gets a Payment Bank License; They also Allow You to Pay your UBER Charges via their Wallet!

Why Does the IT Industry Have to go Through Upheavals to Survive? – The Inflexion Point

Make The Economics Work, And We’ll Have The Auto Problem

If drivers drive 1.5 km to connect with you today, it’s because they’re getting paid that Rs. 300 (okay, Rs. 225) per ride, no matter what.

They don’t crib about where they you want to go. They don’t mind going to a remote place. Uber’s incentives make them go for it. In fact, after 7 or 11 rides, just to make that last one count, they might ask a friend to book a small ride – of say Rs. 50 – so that they don’t lose the incentive. They even request customers – and in one case, when I had to drop a friend off in the middle, I even did it on my own (because Uber’s supposed to be point to point, so I told him I’ll rebook where my friend was dropped).

If you take away these incentives, it will go back to the Auto problem. Drivers will call and ask you where you want to go, and then refuse the ride. Uber might think that this will reduce driver rating which will kick them off the system. But if this is rampant, no “rating” system will help – and as we have seen in Autos, it *is* rampant, even though there are 2x more autos on the road than demand. 

And if you increase fares, many drivers will not even use Uber – you will be able to pick them off the road which is how you pick up Autos. A simple app to measure distances is all you need – and there are tons today. That saves drivers and passengers the 25% that Uber would otherwise charge. And it saves the hassle of having to struggle with surge pricing and all that. A service to call taxis is not very difficult to build, and if Uber takes out incentives these kind of services will easily find their way into every city.

In effect Uber has to keep losing money, for a long time, to drive all competition into the ground. And then hope that as a monopoly it can raise prices and cut incentives. And regulators must not interfere. And public transport should not increase appropriately. And oil prices should be stable. And incomes should go up substantially. There is a non-zero probability of this happening. But even without the math, you get the feeling it’s a lot closer to zero than to one-zero-zero.

Currently, though, it’s a sweet deal for drivers and passengers. I know there will be die hard fans who think Uber is the best thing in the world (or Ola or whoever) but the economics of the business leave a lot to be desired. As a consumer, though, I’m taking all I can get before someone decides the red ink on the P&L has to go.

Note: Thanks for the great response! We also discuss some counterpoints to the arguments here, where we discuss the specifics of car ownership, parking and all that.

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53 COMMENTS

    • I dont agree with his economics – I have a 13 year old car and it’s going strong. The pleasure of outstation trips is all mine of course. But even if you dont consider that, the average cost of a car is much lower now. The car cost over even 10 years, the new average life span – of 6L – is about 60K per year, which at 12,000 km per year is Rs. 5 per km. Fuel + other costs add up to 7 to 8 rs. per km. That’s 13 rs. per km. Consider that you will drive 10 days outstation, and in a rented car this will be 20K, or effectively another Rs. 1.5 per km. Consider that uber costs will actually go to 24 per km for them to be profitable. Your car cost is much much cheaper if you own it – probably 30-40% lower.

        • I thought about it – but no, I think you can’t do without a car anyhow unless you’re not married or don’t have kids (the ferrying requirement of children is utterly bizarre and not good to try to live without a car) So the car costs remain the same.

  1. Deepak,

    Nice summary of the Ubernomics.
    Similar (bad) economics running in food/grocery deliveries, e-commerce. Are we getting into a new bubble?

    Ghansyam.

  2. Tesla’s auto drive technology is the thing to look forward. We won’t need drivers and uber. Just have your on driver-less car and drive around! See this vide

  3. Presuming regulation Uber/Ola/Etc in a nice way, and equated them to radio taxis, then what happens? They will operate at Rs.22/km no matter what. Uber will continue to make a percentage of the fare. This is different from Meru, etc, who charge a flat daily rental to the driver whether they drive, report sick, or take a holiday. So drivers will prefer Uber/Ola/WhatHaveYou over the Meru types, because Uber is less rentier, and sources them the closest passenger without having to interact on the phone.

  4. A very nice objective analysis.

    I haven’t been able to understand as why are continuously loss making companies are valued so much ?
    Every investor I have approached for my start up has asked how will start up generate profit ?

    However, Uber/Ola (even Flipkart and other companies) must have some tricks up their sleeves that I haven’t been able to understand. Eventually businesses are there to make money. However how will they make money ?

    Why was TFS bought for 200 M USD by OLA? If OLA hadn’t bought it anyway all the customers would have come to OLA. Again may be I am naive

    I come with a very humble mindset. I think there are couple of possibilities
    1) I am missing something basic, Quite a lot of smart people are investing in such companies.
    2) People who invest in Uber are idiots.

    I think, it is mostly likely the first one.

    idom

    • Er….so smart people can’t be stupid? Companies like Uber never go bust? Enron only had stupid investors? GTL? Suzlon? J&K Bank? This assumption that some people are smart to have invested so you are wrong is the silliest argument I’ve ever heard. It only took a child to expose the emperor’s new clothes…

    • Heard about the Greater Fool Theory…
      Investors invest in these startups with the hopes that they can offload their holdings to some other investors who further think that they too can further offload their stake to some other investor …..

    • Money has no choice. If everybody is investing in that (loss making) start-up, so should I, cause who knows, if it becomes the next Google, everybody becomes a billionaire whilst I’m still a millionaire.

      What I’ve been told is that people won’t have more than 1-2 apps for taxi service in their phones – and Uber vies to be one of ’em, but I’ve seen people install apps in their phones for far less incentives.

  5. Cost of diesel per month Rs.10,000? What about the distance the driver travel to catch the customer (usually it will be around 3 KMS), what about the distance driver travel to reach the point where the probability of getting drive requests are more also what about the travel cost driver do at the end of day to avoid further distance travel from his home? It is more in reality..

  6. Nice analysis.

    I was interested in finding out about Uber’s use of the surge pricing:
    – quite often it is applied even when the app shows many cars available nearby and in non-peak times, so what is it really based on?
    – is it just a method to try and bridge this P&L gap, not really based on availability and peak times?
    – do the drivers get any benefit from the surge
    – does Uber mine data to check which user is okay with surge and who is not and selectively apply to the ones who don’t mind the surge?

    • Drivers get the full benefit.

      I have, too many times, refused a surge. I have accepted 1.4x surge also at a time because I was desperate.

      Drivers in BLR tell me they avoid surge areas because no one books the car. Their app tells them where the surge is.

  7. One more thing which one of the drivers mentioned. Post the ride Driver always asks you to RATE them. They get Rs 50 extra for that rating.

  8. I think the real future of taxis are driver-less cars that companies like Tesla and Google are working on… Take the human element out and the economics and experience becomes that much simpler. Of course it will take maybe 10-20 years for it to even start getting to mainstream. That will disrupt the taxi as well as the personal-car market in a big way.

    As for own vs cab, the comparison needs to take into account the following:
    1. Driver cost: The Ola/Uber experience *is* driver-inclusive = no traffic-driving stress, one can rest / work / read / make calls en-route. So you have to add a value. A good benchmark might be temp-driver services that usually charge around Rs. 75-100 / hour; say Rs. 2.5 – 3 per km depending on traffic and trip-distance (if we assume a speed of 30km/hour = Rs. 2.5 / 3.3 per km @ Rs. 75 / 100 per hour)

    2. Parking costs at workplace, client offices, malls, hotels (valet cost) etc. Don’t know about Bangalore, but most parking in Mumbai (outside home) is paid and even then its a major hassle to find parking space. Parking charges varying from Rs. 20-40 / hour but the hassle + time & fuel burned in finding a spot is a bigger issue in most places in Bombay.

    3. Insurance and occasional accident repair costs (say another Rs. 1 / km for a reasonable good driver)

    One should ideally add the capital-cost / EMI as well. But on the flip-side there are many benefits to owning a personal car – flexibility, privacy, any-time availability etc. The Olas / Ubers of the world are far from making personal cars unnecessary.

    • Sorry but I don’t agree with this driver cost. There is value in owning a car and driving it – which has a massive thing on availability and comfort and all that. I’m not adding the driver cost precisely because if I own a car I’d drive it – and I think so would a majority of people who own cars. You compare concepts, don’t confuse them by doing things you wouldn’t do anyhow. It may be different for you but for the majority it’s not.

      Parking is not a major deal in BLR except in malls, where you get charged, at least where I go. I don’t mind taking an Uber to work right now even if parking is free here, because they subsidize it hugely. If they raise rates to the point where they are profitable which in my calculations is at least 2x of current, then unless you’re parking in a gold plated silver painted showroom, your parking charges are just fluff.

      Insurance for a car is like 7K (Sedan, with NCB) which is like 0.5 rs. per km for a year. REpairs are nearly nothing – I have two cars in BLR and while i have some dents my repair + service costs are 10K a year on average which I counted anyhow.

      Capital Cost wise – like you said if you own a personal car anyhow, no point removing it. But yes, at this price, an uber or ola is a steal. Keep using it until they double the cost, and then back to autos!

      • Could be WalMart Or Amazon strategy Slash & burn evreyone to ground and try to dominate the market. But I doubt how it will work in unorganised & fragmented market like this especially in a country like ours.

        If it works well, it will hit the 2nd car in family market initially. If I have 1 care do I really to need buy another one if Uber & Ola is reasonably priced (not as cheap as it’s today). 2nd car in the family is not a big %ge of car market I would guess, but still might eat into future growth.

        Even more unknown variable is how the current 5yr olds will see a car when they are 25. Don’t underestimate the impact, especially if you combine driver less car & Uber it with an electric.. I can see a ‘carfree’ haven ;) But this is just my guess, I think right now no one knows where this will end!

      • “Keep using it until they double the cost, and then back to autos!”

        haha, Yes indeed – this is the bottom-line! As long as the VCs keep subsidizing me, I am happy to keep the car at home and use their cabs for long in-city drives.. Let’s see how long it lasts.

  9. Quite ironic that cutting-edge, bubbly capitalism is effectively re-distributing disposable investor capital to members of middle class (discounted goods and services) and working class (wages, incentives)

    • :)

      And a possibility that this is possible the black money siphoned off from the country, returning back to India.
      (We do not know the GP’s behind these investment, we here only about the LPs).

      • ouch many typos in there.

        And a possibility that this is the black money siphoned off from the country, returning back to India.
        (We do not know the LP’s behind these investment, we hear only about the GPs).

    • Not much – if i want to pool I’ll take a bus. A pool adds 15 min of time and is a waste really for the 20-30 measly rupees it saves. Maybe more useful for peopel who dont mind the extra time

  10. So end of the day enjoy the freebies till they last. I’m using ola and tfs for last 2 months with their coupon codes..i’ve observed the new codes are released once the old one’s expired….use uber when none of them available…objective is have a ride cheaper than auto

  11. Last two times for 11 km distance (in Blore) Ola charged me more than 500. In the second case I asked the driver how much he got paid. He showed me.. just 170.. Ola made 350 on a single trip of mine… Still think valuations are not justified?

      • Thanks… This 2.5X 3.5X is becoming very regular both in Uber and Ola.. My relative travels to and fro office daily on Uber.. There are hardly any days when Uber is not having the 2.5 X or more factor.

        I guess Ola and Uber have become oligopolies and have started to ripping off customers

  12. @ Deepak: great summary and explanation. I agree with you completely.

    @Idom: may be you should try to understand the term exit strategy and you will understand the meaning of the term profit for an investor.:)

    smart people are investing in such companies coz they wish to sell their shares after increasing the valuations of the companies, which nowadays in very rough terms means customer base. If you hvae a huge customer base your valuations are high. sell it to someone elese after 5 years, then that person sells it to another one after 5 years till you reach a point where either you become profitable or no one is ready to invest by buying shares in the company since the valuations are too huge. then there is the bubble burst.

  13. 3 minutes per km is pretty good. My typical trips range from 3 to 6 minutes pretty km – mostly due to bottleneck signals.

  14. Well, never been so lucky enough to get an auto @13/km in Bangalore. The only time they agree with meter is at night time with 1.5x rate which is effectively Rs 20/km. Can’t say comment much on Uber since my account is blocked. Lol :D

  15. @dinkar

    of course I know about exit strategy. However eventually I am not able to see way to sustained profit. That is why I am slightly surprised.

  16. The taxi industry is likely going the way of the airline industry. Which famously (at least in the US) has hardly made any money since its inception.

    Most people will simply choose the lowest cost taxi provider as they do when booking airlines. Essentially commoditizing the industry and driving down margins.

    Like the airline companies, taxi companies will try price-discrimination and lock-ins (using frequent flyer miles, etc). But unlikely to help a lot.

  17. Rs. 100 per ride as average fare? Isn’t that low? Would be better if you had done this analysis on per km basis. While I agree that no matter how you look at it; it’ll still be a loss making venture (today), but the quantum of loss would be much lower. The same loss concept goes with all the e-tailers; flipkart, amazon, myntra, jabongg, snapdeal….some shaikh or pension fund is directly subsidizing our transactions.

    • 100-150 is probably low you think? In Bangalore 10 Km typically gets you to a decent part of town from anywhere, and that’s about 150 Rs. My ride to work is 7km which costs me about 100.

  18. The drivers are also consumer friendly in some cases especially long drive hauls because post 7kms the price changes to Rs.13-14/KM instead of 7. So they ask you to end the trip short of 7KMs and then re-book again so that it will be two rides for them and less money for customer. Though there is the risk that he may not get the ride when I rebook.

    My average has been ~Rs13/KM in Uber under normal pricing. Whenever I see a surge I pick-up an Auto. The best use of Uber for me is night rides which tends to much cheaper than finding an Auto and haggling with him for price on road. Even if Uber says 1.5x I might still go.

    However, I am concerned with drivers taking car loans. Lets say after an year or two, Uber changes its pricing for customers creating a surplus of vehicles, they may be forced to accept changes in Uber incentives, or find other economical means of ferrying people, so that they pay their monthly EMI. The car price also depreciates if they want to sell it to pay the remaining loan. Overall, I am a bit skeptical of people buying cars on loan to become an Uber/Ola driver. Unless they make the most in the short run to make as much money to pay the loan fast and then be ready for whatever happens

    • In many cases, people are buying 3-4 cars, employing drivers for those cars and signing up with Uber or Ola. The driver in this case earns a fixed salary.

  19. Also I am curious to know the situation of Uber and Ola in Mumbai suburbs because unlike Bangalore. Mumbai auto walas are transportation friendly. relatively. No 1.5x night charges, high availability and going somewhere is not an event like in Bangalore with the ritual of booking a cab or haggling with an auto guy. People in town may prefer Uber/Ola instead of the cabs but cabs offer share services in some areas.

    • This is interesting, and yes I’ve loved the cab and auto experience in Mumbai. But apparently Uber is still quite popular there. I wonder if the attractive point is price.

      • Having used Uber many a times in Mumbai, I can say with confidence that at a similar price point of a auto or yellow/black cab, uber provides me a cab which is far cleaner and air conditioned.So, at the current price points Uber is the default choice.

      • Base charges are higher in Mumbai. Around 100 for 4 km initial, Re. 1 per minute of ride time, etc. etc. A median Uber/Ola ride in Mumbai must be 10-15 km at the least considering that Nariman Point to Borivali is approx 40 km. Andheri is midway. Drivers have a huge playground and for longer rides, people are more likely to take these air conditioned cabs than noisy crazily driven autos.

  20. Good Analysis Deepak.

    You are missing an important point with regard to these start-ups. One of the hidden sources of revenue for them is your personal data which they snoop upon 24/7 (assuming you always leave your internet and location switched on). Since they have gone app only (for obvious reasons), they have complete access to your location, habits, contacts, call history and for that matter anything you do with your phone. Incentive of Rs.100 per ride is actually economical if they can sell your data to the marketers for more than that. Welcome to Truman’s show.

  21. Content of the article doesn’t justify the Title specially “Economics”. Business model of the ride sharing companies is a acute generalization of the economics gospel.when you say Economics there are several points missing in this article Labour (as the workers today hired are independent contractors or merit employees), License, regulations, future effect on the taxi industry. when you say economics do consider to articulate these points. innovation and sharing economics has consequences on labor , competition, market and governance.

  22. Nice analysis. I got a 50% cash back on Ola last year and topped up wallet. Have stopped using taxi services for daily commute ever since the Ola wallet got exhausted. Just didn’t make economic sense!
    Surge pricing should end as and when they come under the radio taxi capped regime I feel.

  23. For one, everyone driving around is not sustainable for a country like India – we cannot build the infrastructure for that. Normal hour traffic speed is well under 10kmph.If the public services and taxi/autos are reasonably good, there is a case for abandoning owning a car and invest that money elsewhere. Why keep a cow at home if you have milk available ? We may have a problem at the moment, but private cars are the root cause of all traffic problems in every city. While overall, the public transport is not good in Bangalore, there are areas the services are very good(eg: Jayanagar, Bannerghatta Road) and many people abandon their cars and use this. While there are pickpocketing and difficulties in walking around, I don’t think people have abandoned travelling because of that or stop walking. Those sound like lame excuses to use your car at 10kmph or less :)

  24. Uber has stopped giving incentive for each ride and instead it is less profitable if you are keeping driver and profitable to some extent if you drive yourself. The days when Uber used to incentive are gone They did it to break the private cab industry and lure drivers for quick money. Once they achieved it they have stopped and now they pay Rs.320 per hour as incentive, but if your ride crosses Rs.320/- then you are not eligible, if your ride gives you Rs. 300 then they pay Rs. 20 from 320/- promised per hour. Again you should at-least done 1 ride for every 2 hours.

  25. Those incentive days are gone. Here is the latest incentive structure for Kochi Uber.

    Good Morning Partners, For the week starting November 23rd 2015, the incentive structure will be as follows: 1. On all days, Peak Hours will be 7AM – 11AM and 5PM – 9PM. Peak hours will have hourly guarantee of Rs 200 as earnings including fares. (Minimum 2 hours online) 2. On all days, morning non peak hours will be 11AM – 5PM. Morning non peak hours will have hourly guarantees of Rs 175 as earnings including fares. (Minimum 2 hours online) 3. On all days, non peak hours will be 5AM – 7AM and 9PM – 11PM. Non peak hours will have hourly guarantees of Rs 175 as earnings including fares. (Minimum 1 hour online in each block) 4. On all days, midnight hours will be11PM – 5AM. Midnight hours will have hourly guarantees of Rs 150 as earnings including fares. (Minimum 2 hours online). Conditions to qualify: For each block, Acceptance rate should be 80%. Completed trips her hour should be 0.6. Also cancellations should not be high. Atleast 2 out of 5 requests should be completed. Thanks, Uber Kochi

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