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Should You Quit Your Taxi Job To Join Uber Or GrabCar?
This article was originally on GET.com at: Should You Quit Your Taxi Job To Join Uber Or GrabCar?
If you are a taxi driver in Singapore, you might be thinking about joining your rival soon.
At least that's what some of your counterparts have been doing the last few months. According to Straits Times, an industry source said that around 30 to 40 percent of drivers who signed up for GrabCar and Uber fleets are former taxi-drivers.
The hiring rates of traditional taxis such as Trans-cab are declining fast as well. This leads us to wonder: will taxis one day become extinct here?
We at GET.com will help you decide which company is the best to join if you are considering driving as a occupation or looking to switch companies:
A Little Background About The Newcomers
There are mainly two newcomers in the ride-booking services market, Uber and GrabTaxi/GrabCar (see the main differences between Uber and GrabTaxi here).
These services have been fuelled by a new wave of sharing-economy: using private cars for chauffeuring services.
There's little to frown upon as it works out to be a win-win situation for both drivers and consumers – drivers operate on their own flexi-schedule and can defray the high cost of car-ownership by earning an income out of it.
For consumers, the cost is pretty competitive compared to traditional taxis and these services ease the supply shortage during peak hours.
On the latter's side, there's almost no difference in terms of fares, except that you might get a driver who is less familiar of the routes compared to a more experienced taxi driver, which may cause you to be late at your destination.
On the drivers' side, the benefits to driving with the newcomers seem much more attractive compared to the traditional cab service.
Firstly, these new companies are more technologically savvy, translating these to more efficient services via their user-friendly mobile booking apps and cashless transactions.
Drivers can also use their own vehicles for the service, essentially cutting out a huge chunk of their operating costs.
They can drive as they like with no minimum hours or kilometres to fulfil, and stand to gain from the attractive marketing campaigns these companies offer.
Joining Requirements
*CDG Taxi
Taxi vocational license
Singapore Citizen
At least 30 years old
Class 3 driving license
Speak English and mother tongue
Security deposit of $1,000 (refundable and administrative fee of $32.10)
*CDG Taxi includes CityCab and Comfort cabs
GrabCar not included as little details found for drivers on their website.
Uber
Singapore Citizen or SPR
At least 25 years old
Valid class 3 license for at least 1 year
Uber takes a 20% service fee from fare
Driver Benefits
CDG Taxi
Group Personal Accident Insurance
Group Hospital and Surgical Insurance
3 rental-free days
Lower diesel rate
Loyalty incentive
Vehicle incentive
Performance incentive
No service charges by Taxi company
Flexible payment methods of both cash and credit cards
Uber
No need for vocational license
No minimal driving hours
Surge pricing with increased rider demand
Peak hour incentives
Loyalty incentive
Option to use own car or rental car
Low rental car rate around $60 (half of CDG)
Cashless payments
Cancellation fees for drivers if riders cancel after 5 minutes of booking
GrabTaxi
No need for vocational license
No minimal driving hours
Monthly bonus $148-$308
Rush hour incentives $80-$148
Referral incentives for drivers and passengers
Option to use own car or rental car
Low rental car rate around $60 (half of CDG)
Flexible payment methods of both cash and credit cards
So which is best? It's very hard to compare apple to orange, since each company has its own benefits. I would say if you were to choose between them, ask yourself what type of lifestyle you want.
Work-Life Balance
If you want a more flexible work timing, perhaps going with the private chauffeuring service is the better choice as there is no minimum kilometres that you need to cover each day.
Because you are not allowed to do road pick-ups, you can rest in your car or do some other stuff when there's no calls coming in. This could mean a more relaxed-style of driving.
It could also mean you can try to maximise your day by working during peak hours so that you can take advantage of the “surge-pricing” mechanism and peak hour incentives where you earn more and then rest during the afternoon timing.
This is a good choice for those who are in-between jobs as well, as you get to earn some income without having to commit to getting a vocational taxi license and renting a taxi. Find out more about becoming a part-time Uber driver here.
Stable Income
If you are intending to be a full-time driver, going the traditional way could still be better.
The main advantage of driving with established taxi brands is that you can do road pick-ups, as well as have access to customer bookings.
As these are established companies, there is also more structure in terms of claiming insurance if needed and more welfare compared to the more 'freelance' structure of the other chauffeur companies.
Earning Extra Income/Freelance
Obviously for those who just want to make some extra income while keeping their day job, GrabCar and Uber make such a lifestyle a possibility.
You can essentially start driving after you end your office job. You can even skip a day if you are too tired!
This option works even better if you already have your own car, because you reduce your operational cost substantially and only need to pay for fuel.
That's quite a lucrative way to earn a thousand or two for extra pocket money if you drive after work and on weekends.
Given the options above, one needs to be prepared for changes to come as the government is starting to look into ways to regulate the industry.
Nevertheless, it does seem that the newcomers did revolutionalise the taxi service industry with more options for both drivers and riders.
What do you think? Share your comments with us below!
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