How to start a lucrative Uber Business in Nigeria

Uber is a technologically-driven taxi company which helps customers hail comfortable taxis from anywhere, using just a smartphone application. The customer downloads the Uber app on his/her phone and when a taxi is required, just pushes a button to request one. Using a special algorithm, the app then matches the customer to the nearest pre-verified taxi and provides a fare estimate. The app also automatically charges the customers registered card and the driver also gets paid directly into his bank account weekly, so no cash ever needs to be exchanged. After the ride, the customer receives a fare breakdown by e-mail.

How do I register as an Uber driver in Lagos?

1. Bank Details

You will also need to update your bank information with: Your name as it appears on the account/Account number/ Swift code of your bank branch. (If you don’t know your swift code, just ask the next time you’re at the branch)

2. Driver Details

Drivers Licence: this can be obtained from the FRSC.

Lagos state drivers institute ID card: this can be obtained from the Lagos State Drivers Institute.

Background check: this is carried out after the driver has been accepted and has completed the training. It costs ₦20,000 but can be paid in 5 installments of ₦4,000 each. It is a check Uber carries out with the police, which demonstrates that you have no criminal convictions or charges against your name, and is for the safety of passengers.

If the driver is not the vehicle owner, you will also need a contract agreement between the driver and the owner.

3. Vehicle Details

Vehicle Licence

Certificate of roadworthiness (You can get this from the FRSC)

Tint permit if your windows are tinted.

Proof of ownership

Comprehensive Insurance. Uber has partnered with First Bank Insurance, Mansard Insurance, CompareInsurance and Myautogenius.com so these will know exactly what you are talking about. As a rough guide to insurance costs, a search on myautogenius.com for fully comprehensive insurance for a 2008 vehicle costing ₦1.5m returns insurance costs of about ₦60,000 a year with Aiico. This covers you in the event of loss of personal effects, fire, flood, 3rd party damage, accidental damage, theft, towing etc. It is also a good idea to check with your bank to see if they provide comprehensive insurance for vehicles as you might get a good deal through them.

 Others

Certificate of Incorporation. You are self-employed and not an employee of Uber, so you will need to register a company for this purpose.

You will need to be comfortable using a smart phone with GPS in addition to your local knowledge of Lagos. You can either bring your own smartphone (iPhone 4s or newer/Samsng S3 or newer) or Uber provides you with a Samsung Galaxy S5 mini for a ₦50,000 deposit (or 5 instalments of ₦10,000). Uber will also deduct ₦1500 per week for data on the Etisalat network.

Payments are made weekly: Uber pays weekly with the business week ending at 4am on Monday. On Tuesday, you’ll get a report showing your activities for the week and how much you’re due. Thursdays are paydays, and that’s when the credit alert from your bank will come in.

As for cash rides, you’re basically a cash collector, so you’re to submit all cash accrued to your corresponding Partner. Uber never asks for cash. They take their percentage from whatever card transactions you might have gathered over the week, so don’t worry about owing Uber – it almost never happens.

 Partners make as much as N100,000 in a week

If you are also a Partner, you can make between N40,000 – N100,000 a week as a partner.  this amount can be more if you have time to drive yourself and you use your own car.

Building your business to work without incentives is important:  if you want to last long in this business, you have to create a model that is not reliant on incentives. Uber has some great incentives (for instance, you get a bonus of N40,000 after 20 trips for every Partner or Driver you invite, but if that’s the only thing you chase, you might as well be working a pyramid scheme.

Have a good fuel efficient car: This one here is a no-brainer. You’re going to be driving around a lot, so a fuel-efficient car is needed if you don’t want to spend all your money on fuel.  Hyundai Accent, Toyota Corolla or Kia Rio  are some of the best Uber X cars”

Sorting out your insurance: While it’s compulsory for all cars to have comprehensive insurance, Uber is not particular about the insurance provider. The main thing is to get insurance that covers you in the event of an accident. Get a Broker who’ll get you the best insurance rates available.

You can pay for a N3m car in 6 months: There are people who buy cars to be used solely for Uber purposes. If you’re thinking about making this move,  you can get your money back (for a N3m car) in 6 months – if you’ll be driving yourself – or 18 months, if you’ll be using a driver.

Uber provides just the software to connect drivers with riders, and so the company doesn’t own any vehicles. This is where partnership comes in. People make money on the Uber platform by driving their cars themselves and picking up Uber customers, or putting a fleet of cars on the Uber network and hiring drivers to drive them. Even if you do not have a car, you can purchase a Nigerian used car (to save cost) and list it on Uber.

Get our training package video on how to be a successful Uber Business in Nigeria. The body of this work is formed from consulting experienced and relevant people running the Uber Business, to get first-hand information about the success secrets and marketing strategies deployed to achieve business success.

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