With the recent pandemic, more people have begun jumping on the private hire bandwagon, especially with Grab and Gojek. Surely, the flexibility you get and the idea of being your own boss are tempting.
In this article, we’ll go through four reasons why driving a private hire car is still a good job for you if you meet the criteria.
LTA announced in September 2020 that all new private hire drivers will have to be at least 30 years old and only Singapore citizens are eligible to apply. Applicants also need to have at least one year of driving experience.
That is certainly bad news for the younger drivers and non-Singaporeans, though the new changes will not apply to existing private-hire drivers.
That being said, this move is a good thing for older drivers above 30 years old, as it gives older drivers more opportunities in this line while reducing the competition from younger drivers. Younger drivers are often only driving part-time and have more opportunities to venture into other fields as compared to older drivers who may have limited chances to pick up other skill sets.
Being a private hire driver means you can choose the hours you want to work, be it in the wee or peak hours — you do enjoy a lot of flexibility in this aspect. This is especially significant if you need to send your kids to school in the mornings and/or pick them up in the afternoon.
However, bear in mind that the money you earn is correlated to the number of hours you are on the road, so most hardworking full-time drivers tend to work for long hours beyond 12 hours or more a day.
If you are savvy enough to aim for the peak hour surge charges and work hard during those periods, you’ll effectively be earning more than what you can usually earn during regular non-peak hours.
Imagine earning $20 for a non-peak hour trip versus getting $40 for the same distance during peak hour — this certainly sounds like a good deal.
The only downside is that you will likely have to deal with heavy traffic and traffic jams during the peak hours with impatient passengers (and fellow drivers). Additionally, you will face more competition as well.
Private hire companies such as Grab and Gojek have their own system of calculating driver earnings, so you should definitely check them out first before joining any company. They also have bonuses and rewards for their drivers if they complete a certain number of trips or if you join as a new driver.
The more you know how to take advantage of the earning system, the more you can earn!
Driving private hire is not for everyone. You need to either first rent a car or buy a car.
If you are planning to rent, there are many car rental companies for you to choose from, with different rental rates from $60 to more than $100 a day. You should see if you are comfortable with the rates first before committing to driving full-time.
If you’re planning to buy your own car, be sure to calculate how much you’ll be spending and how long you’ll need to be driving to earn back the money spent.
Don’t forget, you will also have to use your personal cash for petrol and the small things that passengers might appreciate, such as a USB charger, bottled water, hand sanitisers, disposable face masks, and more.
If you have set your mind on becoming a private hire driver and are short of cash on hand, Soon Seng Credit’s Grab/Gojek loan may be suitable for you.
This loan will provide you with the cash required to get started and you can repay the loan in comfortable instalments, which would not be too difficult to manage once you’ve started driving and earning a sustainable income.
If you are worried that you can’t manage your finances and loans, rest assured that our loan officers will guide you and give you some tips and advice. You can also check out this article on how you can manage your income and set financial goals.
Our loans start from simple interest of 2.27% a month. We can discuss the loan terms to ensure it is suitable for you and your budget.