UBER says, you can earn up to 20,000 Rs per week by attaching your car with UBER. So monthly income will be =20,000 x 4 = 80,000 Rs.
This 80,000 Rs is your income; not profit. Yes, according to UBER, this will be your monthly income.
Now here comes the cost calculation:
In a month, you can have maximum use 25days (weekly 1 day off for driver). So you have to earn per day = 80,000/25= 3,200 Rs.
1. Uber commission = 80,000 x 25% = 20,000 Rs.
2. Driver's salary = 15,000 Rs (minimum)
3. Driver's lunch = 100 per day;
So lunch bill = 100 x 30= 3,000 Rs
4. For earning 3,200 Rs per day, fuel cost will be minimum = 1,000 Rs.
So, monthly fuel cost = 1,000 x 25= 25,000 Rs.
So, this is your total running cost per month is = 20,000 + 15,000 + 3,000 + 25,000 = 63,000 Rs.
So, you are thinking now, you have a profit = 80,000 - 63,000 = 17000 Rs.
NO, this is WRONG.
*if you use your car for fully business purpose in UBER, you have to think that, at the end of the year, you have to pay almost 24,000 Rs for renew all papers. It means per month cost = 24,000/12 = 2,000 Rs.
*If you want to earn 3,200 Rs per day, you have to drive more or less 100km per day which means 100x 25 x 12 = 30,000 km per year or more. Definitely it will cost you --
Minimum 4 wheels (actually lifetime max 20,000km) = 4 x 5,000 = 20,000 Rs per year. Means tyre cost =20,000/12= 1,500 Rs per month.
*Engine Oil + Gear oil cost per month = 2,000 Rs (minimum for a fully functional car)
*If you want to keep your AC fully running all through the year (30,000km running), you must have to change Radiator, Condenser, AC gas refueling at least once in a year = 5,000 + 5,000 + 2,000 = 12,000 Rs per year = 12000/12= 1,000 Rs per month.
* definitely you have to calculate the engine+ gear box cost within 2 years (almost 60-70,000 km run). So, Engine + gear box replacement (minimum) = 40,000 Rs in 2 year= 20,000 Rs per year = 1,500 Rs per month.
* Dent-Paint in minimum 2 years = 30,000 Rs in 2 years= 15,000 Rs per year = 1250 Rs per month.
* car wash & servicing per month = 750 Rs minimum.
* at least a little bit repairing in a month = 1000 Rs (this is the not only minimum, actually nothing)
So, now you can calculate all the hidden cost = papers + tyres + engine oil + AC + engine-gear box + Dent-paint+ car wash + repair = 2000+1500+2000+1000+1500+1250+750+ 1000= 11,000 Rs per month.
So calculate the profits = 80,000-63,000-11,000=6000 Rs per month!!!!!!
YESSSSS!!!! This 6,000 Rs per month is your Actual Profit!!!!!!!
(Definitely there is huge cash flow, but profit is not as like as cash flow; )
This 80,000 Rs is your income; not profit. Yes, according to UBER, this will be your monthly income.
Now here comes the cost calculation:
In a month, you can have maximum use 25days (weekly 1 day off for driver). So you have to earn per day = 80,000/25= 3,200 Rs.
1. Uber commission = 80,000 x 25% = 20,000 Rs.
2. Driver's salary = 15,000 Rs (minimum)
3. Driver's lunch = 100 per day;
So lunch bill = 100 x 30= 3,000 Rs
4. For earning 3,200 Rs per day, fuel cost will be minimum = 1,000 Rs.
So, monthly fuel cost = 1,000 x 25= 25,000 Rs.
So, this is your total running cost per month is = 20,000 + 15,000 + 3,000 + 25,000 = 63,000 Rs.
So, you are thinking now, you have a profit = 80,000 - 63,000 = 17000 Rs.
NO, this is WRONG.
*if you use your car for fully business purpose in UBER, you have to think that, at the end of the year, you have to pay almost 24,000 Rs for renew all papers. It means per month cost = 24,000/12 = 2,000 Rs.
*If you want to earn 3,200 Rs per day, you have to drive more or less 100km per day which means 100x 25 x 12 = 30,000 km per year or more. Definitely it will cost you --
Minimum 4 wheels (actually lifetime max 20,000km) = 4 x 5,000 = 20,000 Rs per year. Means tyre cost =20,000/12= 1,500 Rs per month.
*Engine Oil + Gear oil cost per month = 2,000 Rs (minimum for a fully functional car)
*If you want to keep your AC fully running all through the year (30,000km running), you must have to change Radiator, Condenser, AC gas refueling at least once in a year = 5,000 + 5,000 + 2,000 = 12,000 Rs per year = 12000/12= 1,000 Rs per month.
* definitely you have to calculate the engine+ gear box cost within 2 years (almost 60-70,000 km run). So, Engine + gear box replacement (minimum) = 40,000 Rs in 2 year= 20,000 Rs per year = 1,500 Rs per month.
* Dent-Paint in minimum 2 years = 30,000 Rs in 2 years= 15,000 Rs per year = 1250 Rs per month.
* car wash & servicing per month = 750 Rs minimum.
* at least a little bit repairing in a month = 1000 Rs (this is the not only minimum, actually nothing)
So, now you can calculate all the hidden cost = papers + tyres + engine oil + AC + engine-gear box + Dent-paint+ car wash + repair = 2000+1500+2000+1000+1500+1250+750+ 1000= 11,000 Rs per month.
So calculate the profits = 80,000-63,000-11,000=6000 Rs per month!!!!!!
YESSSSS!!!! This 6,000 Rs per month is your Actual Profit!!!!!!!
(Definitely there is huge cash flow, but profit is not as like as cash flow; )
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