Our days have certainly changed if we compare it to the past decades. One of the many changes that occurred is the form of transportation we have. There are already numerous types of transportation we can ride on these days, one of which are the extremely popular modern innovation – Grab and Uber. However, have you ever wondered which makes a better income?
Form of income
With the booming success of these companies, people have greatly invested in buying or using their car as the Uber or Grab car, usually the vehicles are sedans because it’s the “easiest” type of car to use. People of all kinds – student, employee, freelancer, and so much more believe in what these companies can contribute in terms of financial matters. Here is a comparison or difference then a breakdown of both companies which can help knows which one makes a better income.
Listed below are the fixed rates of how the income generate with both car partners. However, the reference of the rates is based on a Malaysian website conversion from Ringgit into Philippine Peso. The rates are conducted recently, just this October 2016.
- GrabCar EconomyCommission – 20%
Base fare – Php 11.58
Per KM Rate – Php 12.74
Per minute rate – none
- UberXCommission – 25%
Base fare – Php 11.00
Per KM Rate – Php 6.95
Per minute rate – Php 2.90
With this rate, we can somewhat see how Uber can be slightly more expensive compared to Grab due to the price of the minute rate and the commission percentage. Grab is also pricey due to the amount of the per KM rate. Given with these data, the expense will still vary depending on the traffic and distance faced by the driver.
Time and distance salary variation
There are what we call the “rush hours.” During these peak hours, usually from 6pm until 9pm every day, the price range of booking either Grab or Uber widely increases due to the demand of people and the traffic during that time period. This enables the owner or driver of the partner company to earn more than usual. The distance also increases the expense which certainly depends on the number of kilometers to travel to and the waiting time.
Drivers who make about 10 trips a day may earn an average fare of around Php 200 per trip, earing around Php 2,000 each day. The number of days the driver works indicates how much they would earn as well. The owner will have their share of the salary but the remaining money will go to the company.
The driver shall also face other expenses such as maintenance of the car, carwash, food allowance, internet and load balance consumption, gas payment, and the salary of the driver (unless the owner drives their own car). Clearly, all of this shall be deducted from the total earnings from Grab or Uber.
Toyota Altis in the Philippines is one of the most common used vehicles as an Uber or Grab and even taxi due to its convenience and affordability. You can easily get transportation with just your fingertips! It’s extremely convenient to book a Grab or Uber these days to ease the trouble of facing uncomfortable traffic. Commuting is surely a suggested way in order to prevent from bringing your car to avoid the hassle of looking for a parking, paying for gas, and facing unbearable traffic. In short, using these two kinds of alternate transportations serves as an effective way of travelling.
In conclusion, it can be stated that Uber can earn more than Grab based on the statistics indicated above. Before investing on either companies, it’s still fairly important to fully understand how you will manage your Grab or Uber in time, whether you will meet the expected earnings there.
About the author:
Katrina is your average gal living inside the metro who has passion for writing, travel and photography. She admires nature at its finest and always wanted to become one of them. Dreaming to have the Cinderella life one day, humming with the birds, dancing with the clouds.