Thanks @gbenro for highlighting the key determinants in deciding the model that works.
Hi @Lordbanks, Its cool, Thanks for the Question.
It kinda depends, It appears to be a gender thing, Most female riders sit at the back automatically. I know its also a Safety issue. I personally also like to ride shotgun, Most Male Riders= Shotgun. Truth is I don’t care, whatever makes you comfortable, for the duration of the ride its your car.
There is however a component of cultural sensitivity, some drivers see you sitting in the “owners” corner and have an issue. When I ride, I try to be sensitive. I am 6’3 and large ‘boned’ so when I have a female driver I always ask where you would prefer I sit
Hi @gbenro, on the average, how many rides does one of your cars take pe week and what’s the average fare?
Sir @gbenro, one more thing… Do you estimate Uber as a phenomenon will remain for another 5 years? As in, can a guy safely bet that this 40k to 100k per week will remain for some time and invest aggressively towards it?
Hi @Chinyere, thanks for your questions, lets see if I can answer.
Best Car, is subjective but something comfortable, with good legroom and excellent gas mileage, the global symbol for Uber X is the Toyota Prius, 2007 and above, these are however scarce in Nigeria and kinda expensive to buy and maintain.
Corrollas, Rios, Accents, are kinda the Nigerian staples.
You have to Decide, if someone manages the car for you, you pay a percentage. eg 10% of After expenses. If you manage the drivers you will decide if you want to pay them a monthly salary, wages based on Hours worked or even just a commission on weekly totals.
all things being Equal, after all payments I do about 50k profit per car per week. Most Partners however forget to factor in Depreciation. You need to.
Hi @azanor Thank you for your questions.
I have an agreement that spells out a Cash target and an Hours Target for my Drivers, so in the case you dont make the cash you have to hit the hours, in most cases my drivers work beyond what I mandate them to. Eg. One of my drivers prefers to work at night. So I dont get hung up when I dont see him online at 7 am.
Uber kills cars, Okay thats harsh but your car depreciates a lot faster on Uber. I work with a 2 year period for tokunbo/used cars and 5 years for new ones. Once your car goes in start planning for a new one.
Regret, not starting earlier, Uber weans you from the Bonuses pretty harshly so you suddenly go from 200k a week to 100k. its disorienting but thats life. Advice, GET GOOD INSURANCE.
Hi @daviruz Thanks for the Question, I can honestly tell you I dont know. But I plan to put in a car in Port Harcourt when the Service starts, rumour has it before the end of the year though. The Folks @techcabal always have Uber gist before anyone else.
Sadly Yes. I know its a lot, but it is what it is.
I have mentioned a couple, one that really messed with my head was a young lady who actually told me she was going to complain to Uber that I was too professional and a stickler for being on time. I was like go ahead and she did.
Hi @gbenro, I hear that Uber in Nigeria allows cash payments. What percentage of rides in a week pay with card as opposed to cash? Also, does giving change become an issue?
Hi @seyitaylor I dont have complete info here, 1 is the car owner driving himself? If yes you can pay for a 2 Million Naira car in 6 months, If however its a driver, then management is the determinant. In most cases though using a 2 million naira baseline 1 year to 18 months should work as a return period.
Hi @Tomiloba_07 Thanks for the Question.
Depending on the Car type, engine size and number of trips. In a Toyota Camry about 25-35k NGN.
I have a Geely aka Godzilla cause it Guzzles, that car hits 40-45k a week.
Hi @opeadeoye Thanks for the question.
About 100 to 120 trips a week the Average in Abuja seems to be about 800 NGN (in my Experience) we get really low fares of about 250 naira but thats the average.
Hi @opeadeoye I see what you did there with the Steve Jobs One more thing now hitting me with the harder question, I personally think Uber or Something Uberesque will be with us going forward. There are however too many variables for me to say a definite Yes or No. My Advise though is that unlike other businesses, your only Huge investment is an asset(pls lets not argue). So a good Car can always be resold for significant if not full Value.
So yes Invest. But cautiously and get ready to manage like never before.
Keke on the Run 2 (Beta) Reviews Wanted
Hi @muyiscoi Thanks for the question.
No be small thing o.
Its kind of one of the risk prone areas in the whole thing.
I have very trustworthy drivers now so its not an issue but about 50% of the rides in Nigeria are cash rides. Yes Change is a Major issue. My guys keep 1000 naira change every week to handle surprises but the fact remains you can do a solid ride, and then get 1 star because you dont have change and the rider is annoyed from leaving 50 naira or 150.
Hi Pastor @gbenro,
Thanks for doing this AMA. A recent discussion on Radar informs these two questions:
- What is the most common demographic that use Uber? It’ll be good if you can give us a distribution by gender and age range.
- What is the most common drop off / pick up point? Airport, Hotel, Office building, Residential?
The top ten places Nigerians (Lagosians) are Ubering to
Hi @techscorpion Thanks for the Question,
The issue of Common Demographic, I had a discussion about this just 2 days ago. I dont drive as much as my drivers but I think its a pretty even spread.
I see more female riders mainly, I see a lot of expats (i like them cos its card transactions), Interestingly I also see a lot of ‘Hijabbed’ Ladies. So lets say 70% Female to 30% male in My experience.
Uber probably has more data on Drop Off and Pick up points but I find, Hotels on Weekends, Clubs on Fridays, Work Early on Weekdays, and Church on Sundays mainly.
You can see some of the Demand Points in Abuja here http://www.ubernigeria.com/abujademand/
The top ten places Nigerians (Lagosians) are Ubering to
Thanks for the excellent reply.
Uber’s stats show a lot of concentration around Maitama, Wuse 2, and Asokoro but I fear it is too coarse-grained to settle our discussion.
I do have one follow-up and one new question:
- Is it fair to say hotels are the most popular drop off points?
- Someone posted recently that VIO officers in Lagos have started impounding Uber cars. What’s your view on it and is it occuring in Abuja as well?
Hi Again @techscorpion Well yes you are right, I get rides from everywhere, if however I dont get a ride in a few minutes, I drive to those areas. Almost immediately I get a ping. Yes i am tempted to agree with the Hotels.
There are 2 sides to the VIO and other Security Services victimization stories, one is that ocassionally you meet a difficult person, that person is not representative of the whole force. So while I agree there have been incidents I dont see it as some sort of calculated targetting as portrayed in the story. You can see there was a specific issue and that has been resolved.
Second side is a lot of Drivers see Uber as a cloak of invisibility and that once they say they are Uber Drivers that means they are exempt from the laws of the Land. My Drivers get stopped a lot, one of the things I ensure and Uber requires actually is up to date papers and permits. EG you get a hackney permit which allows you have goods and persons on board. Essentially get all your documents if you want to do this seriously.