Uber. How I play it. Part 4 cont.


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3. Forget surge pricing, go for incentives

My online time equals to my hourly guarantee. So, on a Sunday ($30/hour), if I stay online for 7hours that means I`ll get $210 ($168 after deduction)

How do we optimize this to our advantage ? Ideally, I like to driving in multiple of 3 hours. Either I drive 3, 6 or 9 hours. Why ? Because if the TPH is 1.65 for peak hour, for every 3 hours I only need to pick up 5 riders. 5 riders in 3 hours is 1.67 TPH. Why the funny multiple of 3 hour u may ask ? This is because if I drive let say 4hours, in order to hit the TPH of at least 1.65, I need to pick up at least 7 riders. To illustrate, if I take TPH 1.65 multiply by 4hour is 6.6 riders to be picked up. As we cannot pick up 0.6 riders, the only way is to pick up 7 riders to make the TPH 1.75 which meets the requirement of at least 1.65. Therefore, the optimum hours is in multiple of 3, anything more than that , u pick up more riders, u use more petrol and energy.

As mentioned, the ideal scenario is 5 riders in 3 hours. But how is it possible to pick up exactly 5 riders in 3 hours ?! I cannot promise you that u achieve that figure but I can guide you to achieve that as close as possible in the later section under blind spots . Looking on a weekly basis, if I drive 45hours, my optimal number of riders is 75 riders. Take minute and absorb this magical number first and I shall do my best to share how to achieve this as close as possible. In the reality and with proper planning you are looking at 80-82 trips and that is a good number. Anyway.the Key is to pick up 75 riders and try not to exceed that amount by too much. Why ? Because, if I only drive for 3 hours (TPH 1.65), whether I pick up 5 or 6 or 10 riders, my hourly is still $30-$35. Dialogue time!

Me : pick up 5 riders and try not to exceed this number to optimize the hourly guarantee
Ah Beng : Eh wait! But if I pick up more I earn more what!
Me : You pick up more, you drive more, you shag more
Ah Beng : But I can earn more leh
Me : Uber`s fare is low, for you to hit $105 in 3 hours, you really need to work very hard and frantically driving to locations to get close to riders (again, waste petrol and energy). Even if you hit $120 in 3 hours, is it worth it ? U earn extra $15 but u also spend more on Petrol and your energy.
Ah beng : Morning got surge also leh, U go attend the briefing or not ? Can surge up to 4.1x leh!!
Me: How many surge rides can you take in 3 hours? The only profitable surge riders is a cool surge of 1.7-2.0 and it covers long distance. 1.2x and 1.4x are measly and even if you manage to get a decent 1.5x surge from Clementi to Shenton way in the morning. Once u are in Shenton way in the morning, there`s no surge in the area already. Also, by that time a lot of people have already reached their workplace, even if you get out to pick riders, high surge is no longer there.

Me cont.. : Therefore, u should just focus on hourly guarantee. Because whether there is a surge or not, once u pick up 5 riders, you $105 is in your pocket.

Ah beng : Talk cock la! So Gut meh ? You confirm work for Uber and LCR one lor, you is their inside man is it ? You is advertisement for Uber or LCR and they pays you how many money ? You is confirm one of the conspiracy people one.

Me : Sighhhhhhhhhhhhh

Conclusion : Go for hourly guarantee!

To be contiuned..exceed word count