By now, you’ve probably heard how one driver earned $6,000 a month on average thanks to Grab. Good for her! I don’t think anyone should be questioning how much a private-hire car driver can make if they’re willing to do the work. But the fact is, most of us are probably not going to give up the relative security of our day jobs to drive for 9 hours a day just to earn as much.
Yeah, I’m not planning to do the whole private-hire driver thing full-time
But here’s the thing, despite Singapore’s small size and world-class public transport (except on days when buses break down, trains are delayed, you know… at the times when you actually NEED transport), the fact is that nothing beats the convenience of having a car and getting from Point A to B in as short a time as possible.
This is especially so when your vehicle needs are limited to a short period of time. We all probably know someone who needed to oversee some renovation work on their new home in Punggol and needed to drop by regularly with extra furnishing over a short period of time. It’s one thing to travel to the North-East, it’s another to make multiple trips with kitchen and lighting appliances. In such a situation, getting a rental car is the perfect solution.
But rental cars can be so expensive in Singapore!
Only in Singapore could your car cost almost its weight in gold, so don’t be surprised that rental cars aren’t dirt cheap either. Renting a typical car in Singapore can set you back between $58 to $78 a day. Not surprisingly, the longer you rent the car, the less you pay.
But what if I told you your rental car could not only be cheaper, but you could essentially get it for free? All you need to do is drive just 3 hours a day with Grab, and you’ve literally got a free car to make the rest of your life more convenient.
Not convinced? Let’s do the math.
The model of the car you rent from Grab determines the initial cost you must make up for. If you’re hoping for one of the new models you would be looking at $60 a day at least. But if you’re willing to drive around town with an older sedan, that would drop the rental cost to about $45 to $50. A difference of $10 to $15 may seem inconsequential now, but it quickly adds up. We’ll get back to these values later.
How much does a typical Grab driver earn an hour?
For purposes of our calculations, let’s look at what a typical driver would be earning. Based on fares alone, we assume the average Grab driver earns $22 an hour during peak periods and $17 an hour during off-peak periods.
After deducting Grab’s 20% commission, that’s about $17.60 per hour during peak periods, and $13.60 per hour during off-peak periods. Now, remember that we should match our rental cost of $60 a day.
Assuming you drive a minimum of 2 hours during peak periods and 1 hour during off-peak periods – that’s $35.20 + $13.60 = $48.80 that you can earn a day. – which is easily done in 2 hours – (as of this writing). That comes up to an extra $11.40 a day, bringing your total earnings to $60.20 a day, just for 3 hours of driving.
But it’s unreasonable to ask me to drive during peak periods… I have to work!
No one is saying that this scenario fits every person’s timetable, but here’s how we see it – there are a lot of jobs that don’t start at 9am on the dot. Starting your day 2 hours earlier with Grab ferrying people to work during the morning peak period could be all you need to hit the minimum number of trips to achieve the incentive.
On the other hand, you could leave work on time and take advantage of the evening peak periods to do all 3 hours of driving before you call it a night. There are many ways to make this work.
But if I’m only making just enough to pay for the rental fee, then what’s the point?
The point is you now have a car for as long as you need it! Take your family out on the weekends to visit places like the Marina Barrage, which are inconvenient to reach via public transport. Bring your date to a romantic, ulu location like Riders Café or Coastal Settlement. The only person limiting the use of the car is you.
What’s more, as a Grab Driver, you are also eligible for a multitude of benefits such as the unique Driver for Driver benefits. These can not only reduce your driving costs, but may also net you discounts and savings on a variety of products and services.
Interested in being a Grab Driver? Sign up here.
This article is brought to you in collaboration with Grab.