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12 Things You Need To Know About Driving An Uber In Nigeria

Last Friday, we had a Radar AMA session with Gbenro Ogundipe, an Uber driver/partner who’s based in Abuja. Everyone who was interested in knowing what driving an Uber in Nigeria is like asked all their questions and got some witty answers in return. We had fun, they had fun, Gbenro had fun. For the full gist, you can visit the full thread, but I think you should finish reading this post first. 🙂

1. Drivers keep 75% of the fare

According to Gbenro, Uber drivers get 75% of the fare, while the remaining 25% goes to Uber. You might think that too much, but it is what it is.

 

2. Payments are made weekly

Uber pays weekly with the business week ending at 4am on Monday. On Tuesday, you’ll get a report showing your activities for the week and how much you’re due. Thursdays are paydays, and that’s when the credit alert from your bank will come in.

As for cash rides, you’re basically a cash collector, so you’re to submit all cash accrued to your corresponding Partner. Uber never asks for cash. They take their percentage from whatever card transactions you might have gathered over the week, so don’t worry about owing Uber – it almost never happens.

 

3. Partners make as much as N100,000 in a week

If you are also a Partner, you can make between N40,000 – N100,000 a week as a partner. Gbenro thinks this amount can be more if you have time to drive yourself and you use your own car.

 

4. Building your business to work without incentives is important

According to Gbenro, if you want to last long in this business, you have to create a model that is not reliant on incentives. Uber has some great incentives (for instance, you get a bonus of N40,000 after 20 trips for every Partner or Driver you invite) but if that’s the only thing you chase, you might as well be working a pyramid scheme.

 

5. So also is having a good, fuel efficient car

This one here is a no-brainer. You’re going to be driving around a lot, so a fuel-efficient car is needed if you don’t want to spend all your money on fuel. Gbenro recommends Hyundai Accent, Toyota Corolla or Kia Rio. In his words, “[they] are some of the best Uber X cars”

 

6. …and sorting out your insurance

While it’s compulsory for all cars to have comprehensive insurance, Uber is not particular about the insurance provider. The main thing is to get insurance that covers you in the event of an accident. Gbenro suggests you get a Broker who’ll get you the best insurance rates available.

 

7.  You can make as many as 100 trips per week

About 100 or 120 trips taken per week cos an average of N800, according to Gbenro. Remember these are Abuja stats, so number of rides in Lagos could be less (because the traffic and roads are worse) and the fares could be more.

 

8. Fueling costs up to N35,000 a week

You’re going to be driving a lot so you should be ready to shell a few bucks to fuel the car. Gbenro thinks a Toyota Camry takes between N25,000 and N35,000 a week to refuel. All these things are dependent on the type of car, engine size and number of trips, of course.

 

9. You can pay for a N2m car in 6 months

 

There are people who buy cars to be used solely for Uber purposes. If you’re thinking about making this move, Gbenro says you can get your money back (for a N2m car) in 6 months – if you’ll be driving yourself – or 18 months, if you’ll be using a driver.

 

10. About 50% of rides in Nigeria are paid for in cash

 

Not a lot of Nigerians are comfortable with leaving their card details on an online platform, so this statistic is not surprising. In order to provide the best user experience, Gbenro suggests you  have a lot of change at hand. You certainly don’t want a rider to rate you less because they have to leave their change with you.

 

11. Hotels and malls are good places to scout for rides

Uber recently published the top destinations in Lagos and hotels and shopping centres made up 28.1% and 26.1% of the rides respectively. Gbenro agrees with this and according to him, he gets a request as soon as he arrives at these zones.

 

12. Finally, weird things will happen

 

Well, duh. You’re going to have all sorts of strangers in the car with you so this is bound to happen. For Gbenro, it’s getting propositioned by young ladies, or having a guy mopethroughout the ride because his girlfriend was a tad overfamiliar with Gbenro.

In his words, “Weirdest thing, is kinda ongoing, getting propositioned by young ladies. One actually asked me to show her the ring, how long I had been married etc. Asked if I had a single siblings, lots of personal questions, ended up giving me her CV and taking a Church IV”

Source: Techcabal

Uber Taxi: Comprehensive Motor Insurances Prices in Nigeria

 We offer Uber/Taxify car management services, visit here to find out more about this…
 

Four years ago, a family friend got involved in a car crash. She had been trying to avoid a pedestrian and in panic, drove her Honda into a block fence. In total, she spent almost ₦200,000 fixing the car and fixing  the fence. This tragedy would have been easier to recover from if she had genuine comprehensive motor insurance.

      One cannot never be too prepared for adverse events  may occur in the near future, and this is why it is important to be insured.

Getting insurance means that we have help getting back on our feet if any tragedy occurs. There are various types of insurance packages available – health insurance, in the event that we fall sick (we compared 6 health insurers here), home insurance, car insurance etc.

A while ago, we did an article on how to make ₦150000 a month with Uber . To join Uber as a partner, one of the key requirements is that drivers get comprehensive vehicle insurance. To help us in our decision-making on the best cover to get and from whom, we will be profiling comprehensive insurance covers from twelve popular insurance companies in Nigeria.

 

Majority of the comprehensive motor insurances checked offer the following basic covers;

  • Third party property damages (TPPD)
  • Third party bodily injury and death
  • Theft
  • Fire
  • Towing cost.

For extra money, some offer additional benefit/cover such as:

  • provisional car to use for some time in cases of theft or severe damage to vehicle.
  • excess buyback
  • increase in TPPD
  • medical bills
  • cover for loss of personal items
  • no claims bonuses, that allows the policy holder to get a return on premiums paid after a certain number of years
  • protection against natural events (storm, flood, tempest)
  • protection against strike, riot and civil commotion
  • vehicle trackers. Usually provided free for cars worth ₦3 million and above.

According to Uber Nigeria, comprehensive insurance gotten should be inclusive of passenger liability. It is therefore important to let this known to the insurer before buying.

We used a Toyota Camry 2009 worth ₦2.5 million as our benchmark vehicle for all prices stated.

1.) Axa Mansard Insurance

 

Formerly Mansard Insurance, AxaMansard provides three comprehensive motor insurance packages; Auto Plus, Auto Vintage and Auto Classic. Annual insurance cost on our Toyota amounts to N150,000 (Auto Plus), N112,500 (Auto Vintage) and N78,750 (Auto Classic).

Auto Plus includes special features such as free excess buyback and a 5% claims bonus on 3 years consecutive premiums without claims. To get any of these offers today, call Mr Kevwe 08061214981, customer care 01-4485482 or email insure@axamansard.com.

2.) Cornerstone Insurance

 

Cornerstone Insurance has four comprehensive auto insurance plans; Auto Bronze, Auto Silver, Auto Gold and Auto Platinum. Annually, insurance costs for our Toyota is N62,500 (Auto Bronze), N75,000 (Auto Silver), N87,500 (Auto Gold) and N100,000 (Auto Platinum).

Special features/additional covers: excess buyback at 1% of sum insured; loss of personal effect; personal accident.

For more on this offers, kindly contact Ms. Opurum on 09020027966, uopurum@cornerstone.com.ng

3.) IGI Nigeria

 

Comprehensive insurance available for our Toyota is N125,000. This is inclusive of excess buyback. For more on this and other offers call (01) 2918853, 2918854, 2918827 and email: info@iginigeria.com

4.) Law Union & Rock Insurance Plc

 

Using the quote calculator on topcheck, we got an annual insurance cost of N125,000 for the Toyota. For extra cover, the comprehensive standard and plus offers go for N150,000 and N162,500 respectively. Call 09036000066, 01-2931369 for more.

5.) Leadway Assurance

 

Basic comprehensive motor insurance cover goes for N100,000 on our Toyota. This covers all basic benefits listed above. A check on topcheck showed additional benefits are available in the comprehensive standard and plus plans at an annual cost of N137,500 and N156,250 respectively.

Leadway Assurance can be reached via Skype on 01 2800700. To get this offer you also call Gideon on 01-2700700 (extension number: 2013)

6.) Mutual Benefits Assurance

 

 Using the quote calculator on the Mutual Benefits Assurance website, we arrived at an annual comprehensive insurance cost of N112,500 for our Toyota. For more enquiries on this offer call customer care on 07045251029.

7.) Niger Insurance

 

According to topcheck, Basic comprehensive insurance cover for Toyota goes for N100,000 annually. For added benefits the standard cover goes for N112,500 while comprehensive plus goes for N137,500. Call 01 – 2121262 , 01 – 2121264 or email info@nigerinsurance.com for more on these offers.

8.) Old mutual Insurance

 

   Topcheck gives an annual insurance cost of N125,000 for basic comprehensive insurance on our Toyota. Comprehensive standard goes for N150,000 while plus goes for N162,5000. Call Old Mutual Insurance customer care on 01-279-3742-6 for more enquiries.

9.) Royal Exchange Plc

 

Comprehensive insurance cover for a commercial vehicle (our Toyota in this case) costs N150,000 annually. This amount includes cover for passengers liability. For an extra cost the comprehensive insurance will cover against Riots and Strike.  you can reach Royal exchange on +234 -1- 4606690 – 9, info@royalexchangeplc.com

10.) Staco Plc

 

 Comprehensive insurance cover from Staco Plc on the Toyota totals N143,750 annually. As with majority of the others, extra cover is available at more cost. For more, kindly contact Staco Plc through any of these channels. info@stacoplc.com, 08150970457, 01-2952697(skype)

Additional help:

You can use quote calculator tools on CompareInsuranceMyautogeniusTopcheck for comparing comprehensive motor insurance from different insurance companies.

It is advisable to carefully read and understand the terms of agreement before buying any insurance product. Admittedly, there is the challenge of the absence of easy rating system for insurance firms in Nigeria. One can however ask family and friends on recommendations based on service and fast payment of claims.

We offer Uber/Taxify car management services, visit here to find out more about this…

Source: mrpepe.com, Edited by our team.

How to register for Uber taxis Lagos, and make ₦150,000 a month

We offer Uber/Taxify car management services, visit here to find out more about this…

      I was talking to a friend who had recently fallen on hard times, and had come to me for advice. Earlier this year, his wife passed away in childbirth leaving behind 3 young children. He has been struggling financially since then, and although well educated, he hadn’t been able to get a steady stream of income. He told me that he just wanted a venture which could just help him get back on his feet and back into his car business. After some consideration, I suggested to him the option of driving an Uber taxi in Lagos, which he seemed quite welcome to.

WHAT IS UBER?

 

Uber is a technologically-driven taxi company which helps customers hail comfortable taxis from anywhere, using just a smartphone application. 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.

 

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 themEven if you do not have a car, you can purchase a Nigerian used car (to save cost) and list it on Uber.

 

 

HOW DO I REGISTER AS AN UBER PARTNER IN LAGOS?

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 b or c, you will need a scanned copy of the following documents:

  • A 2000 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, and then select what category you fall into.

You then get access to a profile. In your profile, you will need to set up payment details where Uber can send payment to you weekly. You can do this by going to https://vault.uber.com where you login using the same details you used to register.

Information you will need to have available:

  • Your name as it appears on the account
  • Your account number
  • Swift code of your bank branch. (If you don’t know your swift code, just ask the next time you’re at the branch)
  • Tax Identification Number
  • Bank code

If you are hiring drivers to drive for you, you will need to go to your Uber dashboard, click on “Add a Driver”

REGISTERING AS A DRIVER ONLY

Here are the items you will need:

  • Drivers Licence:  this can be obtained from the FRSC.
  • Lagos state drivers institute ID card: this can be obtained from the Lagos State Drivers Institute.
  • Background check: this is carried out after the driver has been accepted and has completed the training. It costs ₦20,000 but can be paid in 5 instalments of ₦4,000 each. It is a check Uber carries out with the police, which demonstrates that you have no criminal convictions or charges against your name, and is for the safety of passengers.
  • If the driver is not the vehicle owner, you will also need a contract agreement between the driver and the owner.

REGISTERING YOUR VEHICLE ONLY

Here are the items you will need

  • Vehicle Licence
  • Certificate of roadworthiness (You can get this from the FRSC)
  • Tint permit if your windows are tinted.
  • Proof of ownership
  • Comprehensive Insurance. We compared insuring a 2009 Toyota Camry worth N2.9m across 10 Nigerian insurers and we got quotes ranging from N62,500 to N150,000 annually. You can find the full results of our research here.

4.  OTHER

  • Certificate of Incorporation. You are self-employed and not an employee of Uber, so you will need to register a company for this purpose.
  • You will need to be comfortable using a smart phone with GPS in addition to your local knowledge of Lagos. You can either bring your own smartphone (iPhone 4s or newer/Samsng S3 or newer) or Uber provides you with a Samsung Galaxy S5 mini for a ₦50,000 deposit (or 5 instalments of ₦10,000). Uber will also deduct ₦1500 per week for data on the Etisalat network.

The entire process takes about 2 weeks, and here are some additional resources to help in your enquiry:

To register with Uber: http://www.ubernigeria.com/get-started

We offer Uber/Taxify car management services, visit here to find out more about this…

Source: mrpepe.com, Edited by our team.

The trends driving electric vehicle development

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In case you weren’t paying attention, something amazing just happened to the automobile industry.

The recent unveiling of Tesla’s Model 3 resulted in the largest product pre-order in history. The fact that within days of launch about 400,000 people paid $1,000 each Continue Reading »

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