I had been constantly asked by my readers on more information for renting a car to drive for Uber. So I decided for this post, I will be comparing on the different rental options, mainly from Lion City Rental (LCR) and from SMOVE. What are the difference and which type of rental model will suit you better. If you use my referral codes, I will be returning some referral benefits back to you.
- Sign up and rent with LCR with my code 8hxsv and we will get Cash incentive. I will return a portion of my share to you so you can earn more. Contact me for more details.
- Sign up with smove through this link and we get $20 credit each after your first rental. Include promotion code as UBER1605 to be registered under UberFlex Club which may allow you to get $100 cash when you drive your 5th trip. Incentive may change based on promotion.
Before you read on, you may want to read my previous post to have a rough idea on how I derived my earnings from that I used in this comparison.
How to be a Uber driver (Part One) – Thing you need to know to register and sign up for uber and rent using LCR.
How much can a Uber driver earns (Part Two) – How much can you earn based on my previous earnings. We will use the figures to do our calculation.
Uber VS Grab – Comparison between Uber and Grab if you think you may want to drive for Grab.
Table of Contents
- Rental Model Comparison
- Daily Rental Rate – Lion City Rental(LCR)
- Hourly Rental Rate – SMOVE
- Summary – Rental Model Comparison
- Referral Cashback Opportunity
Rental Model Comparison
Currently there are two types of rental model in the market. One goes by daily rate where drivers are charged a fixed amount for renting the car. Another option was to go by hourly rate. You just pay for the amount of hours you planned to use. We will discuss some pro and cons between these two models.
Daily Rental Rate – Lion City Rental(LCR)
The most common type of rental everyone is familiar with is the daily rental rate. You will rent a vehicle based on a daily or monthly rate. These are usually a fixed rate and rental company may give discount if you rent the vehicle for a long period of time with them.
PROS of daily rental rate
- If you are going to calculate the rate of the car for every 24 hours, it would just be as low as $2-3 per hour.
- You can have the flexibility of using the rental car as and when you want, and drive for Uber when you feel like it.
- There is no need to worry about insurance or servicing cost
CONS of daily rental rate
- There is a fixed cost, even though you may not be feeling well and never use the car
- You have to pay for season parking for the car when you park at your residential area
- You need to pay for the fuel you use.
- When your car is sent for servicing, if it takes more than 8-12 hours, they will return half of a daily rental, but the return fee does not include GST that they had charged you previously.
These figures are based on previous earnings as shown in previous blog post. Exact earnings may vary as different week may have different incentive scheme.
- Cost per day = $68/day (Car rental, Season parking, HP bill, Car wash/maintenance)
- Petrol cost = $7/hour (On the high side. Can be lower if your car has better fuel efficiency)
- Average earning = $24/hour
- No. of hours required to cover daily car cost (excluding petrol) = Approximately 3 hours
- No. of hours required to cover petrol cost = Approximately 3 hours (Driving for 10 hours a day)
- Driving 10 hours a day will earn approximately 4 hours of profit = $96
- Average profit would be $9.60 per hour (excluding incentives such as cash king)
- Only rent a car to drive for Private Hire if you can drive more than 10 hours a day in order to earn some decent money.
- If you have a day job and need a car, you can still rent from uber and drive at least 5 hours (3 hours for rental, 2 hours for petrol) a day to cover the daily rental and petrol cost.
- Find a relief driver to share the cost with you. Your earnings will increase and the car will be fully utilised.
Hourly Rental Rate – SMOVE
Hourly Rental Rate model of car model has been around for a few years, but recently it was used for driving Private Hire services. One of such service is SMOVE which is in partnership with UBER.
PROS of Hourly Rental Rate
- If you are not well, or busy, you can don’t rent the car and pay for rental. You only pay for the hours you rent.
- Do not need to pay for season parking. Just return the vehicle to where you get the car from.
- You need not worry about insurance and servicing cost.
CONS of Hourly Rental Rate
- High per hour rental cost. $4-6 per hour based on peak or off peak hours. 10 hours of peak rental is $60 (one full day of rental for hourly rate)
- You need to book the car before hand in order to drive. So if there is no car available, you are not able to drive.
- There is a mileage charge when you drive the car for Uber. This cost replace the fuel cost you use. So you will pay according to the mileage you drive.
- You will need to pump petrol if the previous customer left it empty. But you could get reimbursement by taking photo of the petrol receipt and submitting to SMOVE.
- Payment from UBER will be a day later as it has to go through SMOVE before it is being paid to you.
So how much would you roughly earn based on this model of rental. We will assume based on earnings and rental during peak period with an average of 35km distance travelled per hour.
- Cost of rental = $6/hr
- Mileage Charge (0.1L/km x km driven x Petrol Price – 5% Discount) = 0.1 x 35km x 2.10) – 5% = $7/hr
- Average Earning = $24/hr
- Average Profit = $24-$6-$7 = $11/hr (does not include incentive such as cash king)
- Make use of this rental if you are driving for short duration and do not need a car for personal use
- Those who wish to just drive part time and not full time can use this type of rental.
Steps to Sign up for UBERFLEX CLUB and SMOVE.
- UBER & UBERFLEX Sign Up
- SMOVE Sign Up
- After you have signed up with www.smove.sg with promo code “UBER1605”
- Fill in your particulars
- Upload your driver’s license
- Submit payment mode for renting of SMOVE vehicle (Credit or Debit Card)
- Wait for driver’s license to be verified and account approved.
- Minimum age requirement of 24 years old with 2 years of driving experience
You can refer to UBER website for more details on UberFlex Club.
Summary – Rental Model Comparison
Different scenario rental recommendations
Daily Rental Rate (LCR)
- If you are planning to rent a vehicle to drive full time (recommended at least 10hrs) as a Private Hire driver
- If you need a car for personal use and don’t mind spending extra time (approximately 5 hrs) to drive to cover the rental cost.
- Get a relief driver to share the cost.
Hourly Rental Rate (SMOVE)
- If you are driving for short duration (at least 4 hrs) to earn some cash. If you are driving more than 8 peak hours, it is as good as a daily rental rate.
- Part time drivers can use this model of rental with some flexibility (limited by availability of car)
Things to take note for both type of rental
- Excess for accident is $2000 for own car and $2000 for 3rd party(other person car). This means you have to pay $4000 + GST if you were to get into any accident and you are only allowed to do the repair at the assigned workshop by LCR or SMOVE. So please be careful when you drive.
Referral Cashback Opportunity
If you think this post helps you to decide which type of rental to go for, please use the links I have provided to sign up with UBER (my code is 8hxsv) and SMOVE respectively. I will be able to earn a little referral benefits either in the form of cash or credit and it would motivate me to write better post.
For those renting with LCR, usually there will be a $500 cash (accurate as of Jan 17) each for both new driver and referral. I will be returning a portion of the cash back to you as I feel you should be getting more of the benefit as you are the one driving. You can contact me for more details by emailing me or leaving a comment with your details. I will get back to you through email.
Also for those who started driving, I have a whatsapp group with all the drivers that I had make friends with and a secure page with extra tips shared by all the drivers in the chatgroup. If you are interested to join the group, you can message me for details too.