Uber Business Plan-  Investing In an UBER Taxi Business in Kenya

 Caveat: Note that the data and terms of operation are not up to date. Please contact the company for the most up-to-date and accurate information.

Interested in investing in an UBER taxi? Uber is a well-known taxi-hailing service that has caused massive digital upheaval in the traditional taxi industry. How profitable is it from a business standpoint? Do the figures stack up? What is the future of Uber in Kenya and Africa in general? Let us take you through important insights in this Uber business plan– investing in an Uber taxi business in Kenya.

Uber business plan- investing in an Uber taxi business in Kenya – Uber’s business model

So, if you have no idea what this Uber thing is all about, perhaps it’s vital to learn the Uber business model.

Uber, like Facebook or Whatsapp, is an internet service. However, unlike Facebook, which focuses on bringing society together, and Whatsapp, which focuses on messaging services, Uber primarily focuses on bringing taxi drivers and taxi consumers together.

People looking to hire a cab to get from point A to point B can simply log onto Uber and search for the most convenient taxi available. They then simply send a request to the taxi driver. This makes everything easier for everyone. The cab driver simply obtains customers, whereas the customer conveniently obtains service at the push of a button.

Simplicity of the business

Anyone may join Uber and make money by taking advantage of its popularity. The only requirement is that you have a nice automobile (currently, vehicles made after 2009 are accepted).

Customers will readily locate you once you’ve been approved as a driver, and the more business you do, the higher your profile will become. Customers will give you stars for your services. The more celebrities you have, the more credible and marketable you become.

Uber business plan- investing in an Uber taxi business in Kenya – how much money can you make with Uber in Kenya?

The taxi hailing service’s pricing guidelines are as follows:

NB: as indicated at the beginning these are not the latest figures. Contact Uber or someone who operates an Uber to give you the latest.

• 35 per Kilometer
• 3 per minute
• 100 Baseline
• 200 Cancellation Fine

Uber will deduct 25% of your earnings for each customer you transport.

You retain the remaining 75%. In general, the more journeys you make per day, the more excursions you can make. The more requests you cancel from customers, the more money you lose.

Per Day Earnings (Estimates)

We were able to get a fair sense of how much Uber drivers made per day after speaking with a few of them in Nairobi. One driver complained that there were too many Uber taxis and that business had suffered greatly as a result. On average they make at least Ksh.2,500.

Verdict

Should you join Uber or not? That is absolutely up to you to decide. However, it is important remembering that every firm faces its own set of problems. Given the recent decrease in per-trip rates, increased competition, and concerns over who should bear the burden of V.A.T, the endeavour may become less appealing to car owners who buy cars on loan and hire drivers to do the job for them.

That is not to argue that the company is not lucrative. You can make a respectable salary if you can drive the automobile yourself and keep good client connections.

Alternatively, if you can afford to invest in a large fleet of automobiles, you can profitably run by taking advantage of economies of scale.