Here’s why driving a private hire car is still a good occupation for you

calculating profits made by driving a private hire car to earn money in singapore

With the recent pandemic going on, it seems like increasingly more people are jumping on the private hire bandwagon especially with Grab and Gojek. Surely, the flexibility you get and the idea of being your own boss is tempting. In this article, we go through why driving a private hire care is still a good occupation if you meet the criteria, that is.

Updated eligibility criteria for new drivers

The LTA has 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. That is certainly bad news for the younger drivers and non-Singaporeans.

However, the new changes will not apply to existing private-hire drivers. It is certainly a good thing for older drivers above 30 years old, since demand for rides have dropped ever since people are involuntarily staying put in their homes during the pandemic.

Thus, if you are below 30 years old and not a Singaporean, we suggest you venture into other fields instead of driving for private hire.

You are your own boss

Driving private hire means you do not have to wake up at 8am, and leave work at 6pm. You can choose the hours you want to work, be it in the wee or peak hours. However, bear in mind that the money you earn is correlated to the number of hours you are on the road!

Private hire companies such as Grab and Gojek have their own system of calculating driver earnings, so you should definitely check it out first before joining any company. The more you know how to take advantage of the earning system, the more you earn!

Make use of peak hour surges

If you are savvy enough to aim for the peak hour surge charges, you’ll effectively be earning more than what you usually earn. Imagine earning $20 for a non-peak hour trip versus getting $40 for the same distance during peak hour – certainly sounds like a good deal. The only con is that roads are jammed up during the peak hours and competition will be great.

Exclusive driver perks

Being your own boss means running your own business. In this case, you have to use your personal cash for the car, petrol and even the small things that customers appreciate such as power banks, bottled water, hand sanitisers and more.

The good news is that there are driver perks available for you depending on which private hire company you go with. Check out your Grab or Gojek app once in a while. Apart from the usual promotions at petrol stations, look out for retail and even wellness discounts too!

Make your own choices

Driving private hire is not for everyone. Most importantly, there are two options. First, rent a car. Second, buy a car.

There are many car rental companies for you to choose from, with different rental rates from $80-$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!

That being said, buying and renting a car is definitely not going to be cheap. If you have set your mind on becoming a private hire driver and is short on cash on hand, check out Soon Seng’s Grab/Gojek loan!

Soon Seng provides affordable simple interest rates from 2.27% to 4% for loans, depending on the type of loan you are applying for! So, if you’re interested in getting a car lease to start your private hire journey, drop by our store or contact us at +65 6292 5693 to enquire about our rates and procedures! Alternatively, leave us a message here and we will be sure to assist you with what you are looking for!

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