PoolMyRide Blog

OLA + UBER = Greatest Investment Scam [Don’t attach your car in OLA / UBER]

June 06, 2018

Poolmyride

Before you start reading this, i would like to mention i have been a vendor or as they so call “driver partner” with them for about 3–4 months after which i had to attach my commercial cars in Call — Centre .

This blog is for :-

  • NEW Vendors and Individual Drivers of OLA trying to figure out what the hell is going wrong
  • Those who wish to be vendor or would want to attach their car as individual driver in these companies but can’t make their decision

Let’s do maths

Poolmyride

Say you have 1.5 Lakh saved and you think of attaching your car with OLA / UBER. You would need 1.5 Lakh as down payment to get any decent hatchback like indica or Wagon R and set up EMI for 3 years (Commercial cars can’t be used more than that) which will be 15,000 /- month. Accounting you initial investment upto 1.50 Lakh

With all the maths and all the hard work you will put into it you will not be able to make more than 40K revenue a month (Excluding fuel cost and including all incentives).

This 40K comes from driving around 7–8K kms a month . Now see what all expenses you have to cover up in this :-

  1. 15K for EMI FLAT

  2. Since Diesel cars are in serious trouble so keep aside Rs 2000–3000 for police bribe. In case you are willing to buy CNG car then your driver’s atleast 1 hr is spared in refuelling the vehicle so 1K of the salary you give to your driver goes in refuelling the car. CNG Car won’t last more than 2 years in this business

  3. Since your car will run 8K Km a month after 10 months you will have to install new tyres . Cost of one tyre is 4500 and 4 tyres will be 18K so let’s divide this cost to 2K approx a month for wear and tear

  4. 3K for Servicing that too when you not get this done from company

  5. You are left with 18K . If you are a vendor you are screwed right there since you still have to pay the driver salary which account upto 15K for a good honest driver .

  6. TAXES: You will have to pay taxes for UP and Haryana govt since car will run across Delhi — NCR . 1650: UP TAX for 1 month +1500 : Haryana TAX for 3 months + MCD = 1900 + DND = 1000 (approx). 4000 per month in TAXES. If you are a vendor you go in — Minus here

Poolmyride

Other Expenses / Hidden Costs :-

  • Say your car runs 8–10K Km the chances are that there would be atleast a minor accident / dent to the car . Depending on which there will be other expenses
  • Say your driver is not that honest and gets diesel slip of 500 but fuels it up for 400 only you loose 100 rs there. There is no Fuel card system in OLA / UBER which is normally in call-centres when you attach car with a vendor.

Customer First and Vendor Last

Let me explain all the ways you can get fucked up by their system :-

Poolmyride

  • When you accept a duty , you don’t know where the passenger is so say your driver is at Rajouri Garden and duty comes from Karol Bagh. Not only does the car run 10 Km extra but in case there is traffic and you reach late or having trouble locating the passenger , passenger can cancel the trip
  • When you accept a duty, app doesn’t shows destination, it’s only when you pickup passenger then you get to know. Say destination is noida sector 100, you won’t get another trip for next 3–4 hours, eventually driver will have to turn around and come to some more visible area which would be 10 kms away
  • In case the passenger is rude, gives you 2 star rating , companies can even black list you without even listening to your say.
  • Say company device gets stuck , while calculating trip cost, you are fucked you don’t know how much to charge so you go by customer since he can complaint as well
  • You are treated like rats, there is no order , it’s seriously a machi-bazar with dominant and either over-qualified staff who don’t respect vendors and drivers or under-qualified those who don’t even care
  • INCENTIVES = BLACK HOLES you will never know what is / will be your month’s incentive. It’s such a complicated equation which keeps on changing.

Your Investment = 0 return

Poolmyride

Your investment for the car is around 1.5 Lakh

If you are able to manage each and everything pretty well you will not have to spend any money from your pocket and whatever you get you give to driver. Or if you are driver you end up saving 15K only which you were saving in the job.

After 3 years your EMI’s are over , your car has run roughly 2.5Lakh — 3Lakh KM . You won’t be able to get even 1 lakh for this much used car .

Nutshell

Companies like OLA UBER are just trying to make their brand with your investment and will be profitable only when driverless cars are succesfull which will could possibly happen in atleast 3 years

I have been tempted to write this blog by my friends who keep asking the same question that why the hell were you not able to make money, my simple answer to that is that there is no money in it.

I hope no-one else falls a prey to their scam and invests their hard-earned money into it. I have lost and i don’t want ye-all to loose as well.


Abhishek Talwar

Written by Abhishek Talwar connecting commuters since 2013 via Poolmyride and Yantha Connect on Twitter