Monday, February 29, 2016

DRIVER TIP: Never Agree to Trips Outside of Coverage Area

Uber Cebu Coverage Area
Photo credit: uber.com

Have you experienced getting a request with destination outside of Uber's coverage area? At first, you'll probably be thrilled by it. Why not? You can go to places you've never been to like Moalboal, Daan Bantayan, Argao, etc. But wait, is it really worth it driving to places outside coverage area with normal Uber Cebu's uberX rate? Let's find out.

First, let's pull out uberX's rate in Cebu:



Then let's pick a popular tourist destination outside the coverage area. I'll pick Moalboal.



Google map says its 100 km away and is 2 h 21 min without traffic. With traffic, let's assume the total travel time is 3 h 30 min, given moderate traffic condition.

Let's plug in these numbers on our calculator. Here's the formula:

Base Fare + (Time Rate * Time) (Distance Rate * Distance) Total Fare
Total Fare   40 + (3 * 210) (6.90 * 100) 
Total Fare   ₱1360

So your passenger will pay ₱1,360 for the trip. Deducting Uber's 25% cut, you'll receive ₱1,020.

Let's calculate your expenses for this trip. First, gasoline. Assuming your car's fuel efficiency in highway is 15 km/l and the cost is ₱30 per liter, that's ₱2/km. Next, food expense. Driving 7 hours straight would pretty much complete your day already. So let's assume 2 complete meals at ₱50 each for a total of ₱100. Then carwash for ₱80.

To summarize:

Total Expenses   Gasoline  +  Food  + Carwash
Total Expenses  =  400 + 100 + 80
Total Expenses  = ₱580

So, your take home is ₱440 only. That's if you own the car. What if your driving for an operator? Assuming 60/40, you'll receive ₱176. You decide if that's good enough.

Note: This calculation is based on normal rate. With surge pricing of at least 2x, you'll probably be in good hands.

Tip: For destinations outside of coverage area, try to negotiate the rate before leaving. ₱30-35/km is a good rule of thumb. So for the above example, a trip to Moalboal should be at least ₱3,000.

Let us know guys your comments by posting it below.


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