Updated: July 3, 2017
For a couple of years now, Uber drivers have been providing Pinoys an alternative way to commute. I’ve been an Uber rider since it came to the Philippines and I’m still a frequent rider until today.
But Uber has also given Pinoys a new way to make money as one can apply and become an Uber driver. My brother has recently started driving and I asked him how much he earns as an Uber driver.
Moreover, it’s interesting to study his net income because he bought a new car, a Hyundai Accent, with a car loan. It is required that your vehicle be 3 years or younger to apply.
So is he earning enough for his family as an Uber driver given that he has to pay a five-year car loan? How many trips does he need to make to breakeven? How many hours a day does he drive?
I asked him these questions and below are his answers. Please note that all monetary values are estimate averages on the date of publication of this article (Sept 2016).
How to Become an Uber Driver
To become an Uber Driver, you can apply online through this link. and follow the instructions that will be shown.
Apart from the personal information, you will be asked if you want to apply as a Driver or as an Operator. A Driver account is for private car owners who plan to drive their own vehicle.
Meanwhile, a Partner-Operator account is for those who plan to have more than one driver and/or more than one car that will operate under Uber.
Next, you will be asked to agree to the Terms and Agreement. Then, you’ll need to upload a scan or photo of your driver’s license, police clearance, vehicle registration (OR and CR), car insurance, and other documents.
Download and install the Uber Partner App on your phone and wait for Uber to activate your account. Once activated, which takes around 1-2 days, and after you attending the onboarding seminar, you can now start earning as an Uber driver.
There’s a wide list of accepted cars for Uber Philippines, mostly sedans. However, vans and pick-ups are not accepted. Currently, there is no minimum engine displacement required; but LTFRB will only approve vehicles that are 3 years old or newer.
Popular cars are Toyota Vios, Wigo, Innova, Altis, and Hyundai Accent. Primary reason is because they’re currently the most affordable for a car loan. Also, all colors are accepted, using a black car is not necessary.
My brother applied for a car loan at East West Bank. He paid P50,000 downpayment and got a 5-year term with monthly amortization of P15,000. According to him, the maximum amortization you should get is P20,000 per month if you want to make good income.
Personally, I would also advise that you shop around and ask quotes and proposals for your car loan from several banks. Additionally, if there’s an opportunity, buy a second-hand car to lower your initial costs.
Average Income of Driving an Uber Car in the Philippines
After two months of driving, my brother says he takes home an average of P10,000 per month, net of all costs including the car loan payments, PLUS a variable amount from weekly driver incentives (more on this later).
Below is the accounting he gave me:
Please note that these numbers are from my brother’s experience as an Uber driver. However, he claims that other drivers whom he talked to shared an average income close to his figures as well. His breakeven is 12 rides per day.
I’m sure you noticed the part that the Net Income does not yet include Incentives that you might receive from Uber.
According to him, Uber gives out weekly targets for drivers and gives cash incentives if you hit it. The target numbers vary and it is not guaranteed that Uber will give you one each week.
Currently, my brother’s incentive for the week is 7 trips per day. He will receive P1,500 extra cash for every day that he hits the target.
Becoming an Uber driver is an excellent way to make money, particularly if you already own a qualified car.
If you’re going to buy a car for Uber, then this option becomes risky given that you’ll need to pay monthly amortization for the next five years or so. What if Uber stops operating in the Philippines (or closes down) before that?
My advise for Uber drivers who will get a car loan is to take advantage of the incentives. Try to earn as much as you can, minimize your personal expenses, and build a buffer fund for the loan payments.
Moreover, consider buying a second-hand car. Or better yet, get yourself matched and be an Uber driver for another car owner.
Lastly, this article is not meant to be a comprehensive guide for becoming an Uber driver or partner-operator. It’s still best to directly contact Uber Philippines about the process, terms, and other important details.
Sign Up For Uber
- Click this to sign up as a RIDER or PASSENGER.
- Click this to sign up as a DRIVER or BUSINESS PARTNER.