It has been about 8 years since the birth of the private-hire car service in Singapore back in 2013.
Private-hire drivers have seen their income dwindled in recent years. The early days of drivers making up to 5-figures per month with surged fares and attractive incentives are over.
These days, most drivers are bringing home lesser money as demand for private-hire car services has lessened due to the impact of the pandemic. Drivers also have to deal with increasing costs in operating their private-hire business.
We spoke to a few active drivers and asked them to share a few tips on how to earn more driving private-hire in 2021.
The amount of time you can spend driving is limited before you become too tired. Instead of letting the car sit unutilised in the carpark, look for relief drivers who can help you defray part of your rental cost. A $20-$30 relief fee a day can help you offset a big portion of your daily rental. You will be surprised that there are many people who are actively looking to be relief drivers to earn a second income.
With the reduced demand for point-to-point car service, many drivers have taken up delivery jobs to supplement their income. The demand for delivery services has increased as more people are working from home and choose to make online purchases over purchasing at the retail store. Taking up some delivery jobs during the lull period is more efficient than sitting and waiting for the next job.
Reduce your running cost
The major running cost of the private-hire car business is the petrol cost. Petrol cost is ‘sky-high’ now after the recent increase in petrol duties. Unless you are driving a car that requires only premium 98 or v-power petrol, save up on your petrol cost and pump the cheaper grade. The savings in cost per tank will outweigh your perceived greater fuel efficiency with higher grade petrol.
Although it might seems like the norm, we have seen drivers paying in cash when pumping petrol. Please do not waste money and use a credit card instead. There are credit cards that gives you rebates while cash gives you nothing additional. Every cents count.
Switch to a more efficient car
With the rising petrol cost and the eventual phasing out of older cars, it might be a good time to relook and change the vehicle early if you intend to carry on this business. An older rental car is generally cheaper than a newer hybrid car but it usually comes with higher petrol and a greater chance of breaking down due to age. In this business, if your car ain’t working, then you ain’t working.
Save on your car insurance
Private-hire car drivers need to get commercial car insurance for their cars in order to provide private-hire car services. Insurance is a major cost for those using their own vehicles. Drivers can save more when they compare among across the various insurance companies. Click on the link above to get a non-obligatory quote for your car insurance.
Private-hire car drivers are all their own bosses, they do not take any salary and is responsible to themselves on how much profit they make. If you cannot increase your revenue, then work on cutting your cost. Either way, it increases your profitability.