BUSINESS IDEAS

How Nigerians are Making Money Through Uber

What is Uber?

Uber is a technologically-driven taxi company which helps customers hail comfortable taxis from anywhere, using an app. The customer downloads the Uber app on his/her phone and when a taxi is required, just pushes a button to request one. Using a special algorithm, the app then matches the customer to the nearest pre-verified taxi and provides a fare estimate. The app also automatically charges the customers registered card and the driver also gets paid directly into his bank account weekly, so no cash ever needs to be exchanged. After the ride, the customer receives a fare breakdown by e-mail like this below:

How people make money through Uber

Uber provides just the software to connect drivers with riders, and so the company doesn’t own any vehicles. This is where partnership comes in. People make money on the Uber platform by driving their cars themselves and picking up Uber customers, or putting a fleet of cars on the Uber network and hiring drivers to drive them. The easiest and most affordable way to do it is to drive for yourself on Uber.

It is a great earning opportunity as you as a driver are self-employed and as such,you have complete control overwhat hours you work. You can adjust your availability to suit you, and the company only sends you customers during your available hours. There is also no need to haggle prices with customers as fare prices are determined bythe app, and are automatically calculated based on the distance and time. Uber takes a 20% commission and credits your bank account at the end of each week or month with your earnings. One driver confirmed guaranteed bookings of a minimum of 7 jobs each day, but an actual outcome of about 14 jobs by the end of the day. Assuming an average fare of ₦1,500 per ride, this translates to ₦100,800 per week (after commissions) for a driver working 6 days a week. While this is a “guesstimate”, the driver I spoke to reported earnings of about ₦110,000 weekly after commissions. He reported a monthly net income of between ₦240,000 and ₦260,000 after paying approximately ₦112,000 monthly for petrol and ₦60,000 monthly for insurance and maintenance expenses. Obviously,non-owner drivers should expect a lower net income after car rental/leasing costs.

Update August 2016: The earnings reported below were reported around October 2015 with one of the first set of partners. A net profit of ₦100,000 to ₦200,000 is more realistic around now)

How do I register as an Uber partner in Lagos or Abuja?

You can register on the Uber network as:

a.) A driver with no access to a vehicle

b.) A vehicle owner who wants to drive

c.) A vehicle owner planning to employ someone to drive

If you are registering with a vehicle as c or b, you will need a scanned copy of the following documents:

A 2006 or newer car in very good condition, which Uber will require that you bring in for an inspection.
Your drivers license (for ID purposes)
Your third-party vehicle insurance certificate
Your vehicle inspection clearance papers (Book a test here)

You will then need to register online as a partner using this link, and then select what category you fall into.

About the author

Sandra Chinedu

Chinedu Sandra is an Entrepreneur within the I.C.T space and loves blogging. She is on the Honour list of GEM, a World Bank Project for start-ups in Africa.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *

Subscribe to our News Letters

Loading