Starting a Uber business in Nigeria can be quite profitable if you know how to go about it. And the business can be done part-time if you have a full-time job.
In this post, we take a look at how you can start your Uber business in Nigeria in 2019.
Uber Business in Nigeria: How to Start in 2019
First, let’s take a quick look at the history of Uber.
Uber is basically a transportation network company located in San Francisco, California. Currently, Uber operates in over 700 metropolitan areas across of the world.
It would be recalled that the company was founded in 2009 as UberCab by Garrett Camp and Travis Kalanick. The idea was borne based on Camp’s interest in finding ways to reduce the cost of direct transportation and he discovered that sharing the cost with people could make it affordable, the idea later became Uber.
The Uber platform is estimated to have over 100 million users in different parts of the world and Nigeria isn’t left out. One of the perks of Uber for anyone that can drive is that you can make money while driving people around the city.
If you’re looking to start a Uber business, there are some requirements you need to meet as a Uber driver.
These requirements are highlighted below:
- You must have a valid driving license for Nigeria
- You must have completed a safety screening
- You should be at least 21 years of age
There are also specific vehicle requirements which we have highlighted below:
- All vehicles need to be in excellent working and physical condition and they must have a working radio, air conditioning, and four doors
Also, before you hit the road, you will need to upload the documentation which includes uploading a valid vehicle insurance and driver’s license. If the vehicle is your personal vehicle, you should also upload your vehicle inspection report to your profile.
Once you have completed your documentation process, the next step is to activate your account. After uploading all your documents, your vehicle will be activated.
The Uber app is available for both Android and iPhone smartphone. When a rider needs a taxi all he has to do is press the request button and the platform is programmed with a special algorithm to match the rider to a nearby driver with a pre-verified taxi.
This simply means that Uber provides the application to connect or link the driver with riders. The company is touted as the largest transportation company in the world yet it doesn’t own any vehicles or cars of their own.
Typically, people make money on the Uber Nigeria platform by driving their own cars by themselves, also picking up Uber customers. The driver is usually paid on a weekly basis directly into his bank account
Another option is to put your fleet of cars on Uber Nigeria platform and hire drivers to drive them. However, the most profitable option is to drive your own car.
As stated earlier, there are requirements your car needs to meet as a driver because Uber doesn’t accept any kind of cars or vehicles.
We have elaborated on these requirements below. You will need to meet these conditions before your car can be accepted into becoming an Uber Affiliate.
- The model of the car must be at least 2002 which is the year the car or vehicle was released.
- The car must have four working passenger doors. Uber will test these doors to see that they are working properly. The company doesn’t allow two doors cars.
- The vehicle must have a valid insurance policy document. You can’t apply to become a Uber driver without this document.
- You will also provide a vehicle inspection report.
Once you have met all these conditions, you are good to go.
In summary, we have compiled a list of facts about Uber that we think you should know before embarking on this business.
- Uber drivers get 75% of the fare, while the remaining 25% goes to Uber. Some people think the percentage Uber gets is too much but Uber clearly thinks it is fair.
- Uber pays weekly with the business week ending at 4 am on Monday. This means that you will get a report showing your activities for the week and how much you’re due on Tuesday while Thursday is the day you get paid. However, if you have received cash during any of your trips, you’re to submit all cash accrued to your corresponding Uber Partner. Uber will never ask you for cash instead they take their percentage from whatever card transactions you might have gathered over the week so you don’t have to worry about owing Uber because it will never happen.
- If you are an Uber Partner, you can make between N30,000 – N100,000 a week.
- As a Uber Partner, you will be driving around a lot, so you will need a fuel-efficient car. The likes of Hyundai Accent, Toyota Corolla or Kia Rio are some of the best Uber X cars because of their fuel efficiency.
- It is compulsory for all Uber cars to have comprehensive insurance although Uber is not particular about the insurance provider.
- As a driver, you can make as many as 100 trips per week
- Fuelling costs up to N35,000 a week although the cost depends on the type of car, engine size and the number of trips, of course.
- You can pay for a N2m car in a couple of months based on your proceeds from driving a Uber but if you will be using driver, it can take as long as 18 months.
- About 50% of rides in Nigeria are paid for in cash. This has been linked to the fact that many Nigerians are not comfortable with leaving their card details on an online platform.
- Hotels and malls are excellent options when looking for rides as it has been revealed that these places make up to 30% of the total Uber rides.