switchlogic:
Ive liked into it, the economics do stack up
Now I have a little more time, I’ll explain why I think your idea is a non-starter, and you can pay as much or as little attention to it as you want.
The biggest problem will be that your fixed costs will be the same as a part-timer as a full-timer. I’ll give you some figures which, as any of the ex private hire drivers here will confirm, are entirely realistic.
Your hire and reward insurance will be about £2,500 pa, driver and vehicle licences will be around £500 pa. You’ll need an accountant, say £300 pa and let’s say another £200 for various bits and bobs, so that’s £3,500.
You’ll need a car. You’ll hope to average 200 miles a shift, two shifts a week will add 20,000 miles a year to this. The Licensing Authority will have a minimum age requirement for the car, and it will get absolutely trashed. It will need two MOTs a year, you will get through brake pads and tyres like they are going out of fashion, with running costs and massive wear and mileage related depreciation you are looking at £1,500 a year and that is probably a woeful under-estimate.
So we have £5,000 a year to operate, or £100 a week.
So you go to work, have an incredibly busy shift, and after 12 hours you have clocked up £200 in fares. 25% goes to Uber, so we are down to £150. Take off your £100 a week costs, and then the £50 fuel it took to earn that £200- your fuel consumption figures will be eye watering- and you are left with nothing, all you have done is covered your costs.
So you do a second shift, again it is incredibly busy and again you take £200. Again, Uber take £50, and again you have spent £50 on fuel. The rest is yours. You have earned £100 for a total of 24 hours work or around £4 an hour.
Now it’s up to you whether you think these are likely projections, it really is no skin off my nose either way. But as I said at the beginning, anyone here who has done private hire will say these figures are entirely realistic, apart from the fact that it is highly unlikely that you would take £200, twice a week, every week, even Friday and Saturday nights can be as dead as a dodo and there are many where you would struggle to take £100.
Comments from other ex private hire drivers about these figures are welcome. 