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Thread: Is giving cars to careem a good business?

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    Default Is giving cars to careem a good business?

    Supposing you buy 5 cars and give them to careem along with a driver and they run for 16 hours atleast per day then they'd be bringing atleast 130,000 per month (based on what I've read and heard). Deducting 20-30k for the driver would leave you with atleast 1 lac per month per car.

    Getting such an amount per car is a very good investment. Supposing you got the car for 15 Lacs then that's pretty good return on investment too. Along with that if the car runs in Lahore or karachi as compared to islamabad would even bring in more money.

    What are your thoughts?

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    Quote Originally Posted by Carn View Post
    I did the numbers for this for a friend a while ago, here was what we concluded with (financial statement styled), for Careem only:

    You can earn around 100,000-110,000 by meeting the minimum targets on Careem, average 105,000rs for 10 rides daily, 30 days a month. That's your revenue.

    Revenue: 105,000
    Tax: 3050
    Tax is deductible here because this is your income, all further expenses etc. come at your own behest. I'm not sure if Careem cuts taxes on the payments made, this is worth looking into.

    Gross income: 101,950
    Costs
    - Driver: 25,000
    - Fuel: 33,000 (6000km monthly, 500ltr at 12km/ltr average)
    - Maintenance: 4,000 (oil, tuning, filters etc.)
    - Depreciation of asset: 6,500 (based on the price difference of getting a new City ~16lac vs a 5-year old city ~12lac over 60 months)
    - Insurance: 5,000

    Net Profit: 28,450

    Which is to say, you'll be earning 27-30k per month that you can spend anywhere. The depreciation money is assumed to be reinvested after 5 years in selling the old car and getting a new one.

    If you have the spare money to buy and manage some cars, 2-3 cars can net you almost 100k extra per month. This doesn't include the headache of maintaining the cars and managing your drivers.

    If you however have a full time job and want to consider driving Careem instead, I don't think these numbers will please you, the same way my friend decided it wasn't really worth it.
    I agree for most part besides revenue and depreciation

    Nobody should buy a Honda for this purpose. Rolla is the right option since it doesn't deprecate in value even after 3-5 years and even if it does its not more than 1-2 lacs so I don't think corollas would give one a big headache because of depreciation.

    And apart from that if your cars are only for this purpose then you can easily run them for 15 hours a day and in that period they should be able to get more than 10 rides a day very easily.. I think for a car which runs for this purpose only throughout the day the gross revenue should be at least 150k

    May I know when did you do this calculation?

    These guys have really picked up their pace in the last month or so and their popularity is increasing by the day with more and more people opting for these kind of services.

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    We did it back in August, when my friend bought a new City and Careem didn't have economy class. I know times have changed now but here are some of the observations we had when punching these numbers:

    - You will have days when your drivers are sick/away and can't meet the daily quota
    - You might have accidents etc. that may prevent the car from being on the road for a week or so
    - Your drivers may quit altogether and it might be a few weeks until you can find a replacement etc
    - Uber/A-Taxi and more competition will always be there to take a cut in your pie
    - PTI dharnas can and will affect mobility some days

    So the lowest average we measured was based on assuming all of the above affect your annual income, with some months being over 50k and others barely hitting 20k.

    Also note that no driver is going to work 15 hours a day for you indefinitely, you will need two drivers for that, or have a fresh supply of new drivers every 3-6 months, which will affect your profitability and costs.

    Lastly, as far as rolla goes, yes the depreciation is barely 2 lac at most, but rolla rolls out a new model every 5-6 years, compare the prices of a 2011 GLi (13-14 lac) to a 2016 GLi (19-20 lac), the gap gets even wider. If/When the new city comes out in 2018/19, it'll be jacked up to 17/18 lac basic as well, and the cost to upgrade a 2014 to 2019 will still be 4-5 lac.

    This can be avoided however if you plan to run the car for 10 years, which I think Careem now allows but then you'll need 6-10 lac to upgrade your car. All things considered however, your average monthly pocket won't exceed 50k in my opinion in a very optimistic scenario.

    Edit: Afterthought, take depreciation as inflation adjustment as well as depreciation, which makes more sense. The math remains the same.

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    So this piqued my curiosity again and I made an excel to extrapolate what the most profitable combination of rides is for Careem. Here's the graph:

    Is giving cars to careem a good business? -1718151

    If anyone's interested, I can share the excel where you can change fuel average, insurance, depreciation, ride time and driver working hours etc. to see how much it'll cost.

    Edit: cancer quality image replaced
    Attached Images Attached Images  

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    Yestrday i took a ride using uber and asked all these questions from the driver who was also the owner.. as per him till now he is unable to get daily bonus of 2500 coz uber pays 2500 per day if u manage 11+ customers in 12 hours but he said max he managed in 12 hours was 9 trips.. same is the case with Careem i guess.
    But still he was making 60k income after deducting all the expenses by driving 12 hours daily






    Sent from my SM-J710F using PW Forums mobile app

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    its like a restaurant business, the more the customers , the more the expenses. If you run the car more , it will ask more for maintenance and oil changes and tires and accidents and all that, so if it brings in more cash, it eats most of it too, @Carn is right on the spot.

    Uber seems better and anyone with a new car can just subscribe for the app and use it for that extra buck daily as and when required, but again the computer modeling of these geniuses is not driver friendly and almost no one gets the bonuses and treats. They are simply not achievable, and subject to change without notice.

    The cars in pakistan are damn expensive and the revenues peanuts due to cut throat competition. Just my two cents
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    Quote Originally Posted by Carn View Post
    We did it back in August, when my friend bought a new City and Careem didn't have economy class. I know times have changed now but here are some of the observations we had when punching these numbers:

    - You will have days when your drivers are sick/away and can't meet the daily quota
    - You might have accidents etc. that may prevent the car from being on the road for a week or so
    - Your drivers may quit altogether and it might be a few weeks until you can find a replacement etc
    - Uber/A-Taxi and more competition will always be there to take a cut in your pie
    - PTI dharnas can and will affect mobility some days

    So the lowest average we measured was based on assuming all of the above affect your annual income, with some months being over 50k and others barely hitting 20k.

    Also note that no driver is going to work 15 hours a day for you indefinitely, you will need two drivers for that, or have a fresh supply of new drivers every 3-6 months, which will affect your profitability and costs.

    Lastly, as far as rolla goes, yes the depreciation is barely 2 lac at most, but rolla rolls out a new model every 5-6 years, compare the prices of a 2011 GLi (13-14 lac) to a 2016 GLi (19-20 lac), the gap gets even wider. If/When the new city comes out in 2018/19, it'll be jacked up to 17/18 lac basic as well, and the cost to upgrade a 2014 to 2019 will still be 4-5 lac.

    This can be avoided however if you plan to run the car for 10 years, which I think Careem now allows but then you'll need 6-10 lac to upgrade your car. All things considered however, your average monthly pocket won't exceed 50k in my opinion in a very optimistic scenario.

    Edit: Afterthought, take depreciation as inflation adjustment as well as depreciation, which makes more sense. The math remains the same.
    Brilliant analysis. And yes please share the spreadsheet too..

    I wasn't planning to do this myself. I suggested it to a family member who was of the view to invest 20 mil + on a home and renting it which gives very very return on investment (0.3-0.8 %) so I thought of this as a more suitable option since the returns are much much better even though it's a little riskier.

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    Quote Originally Posted by moizadil View Post
    Brilliant analysis. And yes please share the spreadsheet too..

    I wasn't planning to do this myself. I suggested it to a family member who was of the view to invest 20 mil + on a home and renting it which gives very very return on investment (0.3-0.8 %) so I thought of this as a more suitable option since the returns are much much better even though it's a little riskier.
    Agreed, but the value of home increases a lot by passage of time, their is no depreciation involved.

    Sent from my HTC D628h using Tapatalk
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    @Carn Could you please share the spreadsheet?

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    Here's the spreadsheet:

    https://www.dropbox.com/s/2q8e67hzcd...ator.xlsx?dl=0

    It's based on two assumption that may very well be false by now:

    1. You can manage 10 daily rides at least, and those 10 rides can get you 3500 daily. I gather things have changed since then, now with Careem's economy class allowing 10 year old cars and billing as low as 11/km.

    2. Careem holds multiple cars under you as the same account, i.e. you don't need to meet 10 rides on each car - this needs confirmation from Careem.

    If someone has numbers on minimum earned and/or earnings per KM and the info from Careem, I can update the file to make it more accurate and up to date. We can also add Uber numbers for comparative analyses i.e. how much driving on which service is more profitable etc. As it is right now, I'm a little too lazy to research all these numbers.

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    Quote Originally Posted by Carn View Post
    So this piqued my curiosity again and I made an excel to extrapolate what the most profitable combination of rides is for Careem. Here's the graph:

    Is giving cars to careem a good business? -1718151

    If anyone's interested, I can share the excel where you can change fuel average, insurance, depreciation, ride time and driver working hours etc. to see how much it'll cost.

    Edit: cancer quality image replaced
    AOA, Sir can you please share the excel file with me at (****)

    Edit: no need sir, just saw the link you have posted in below post.

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    Quote Originally Posted by Carn View Post
    Here's the spreadsheet:

    https://www.dropbox.com/s/2q8e67hzcd...ator.xlsx?dl=0

    It's based on two assumption that may very well be false by now:

    1. You can manage 10 daily rides at least, and those 10 rides can get you 3500 daily. I gather things have changed since then, now with Careem's economy class allowing 10 year old cars and billing as low as 11/km.

    2. Careem holds multiple cars under you as the same account, i.e. you don't need to meet 10 rides on each car - this needs confirmation from Careem.

    If someone has numbers on minimum earned and/or earnings per KM and the info from Careem, I can update the file to make it more accurate and up to date. We can also add Uber numbers for comparative analyses i.e. how much driving on which service is more profitable etc. As it is right now, I'm a little too lazy to research all these numbers.
    This may be what you're looking for: https://www.dropbox.com/s/fx2u9ie87k...-FAQs.pdf?dl=0

    This is the latest one.

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    Quote Originally Posted by Carn View Post
    I did the numbers for this for a friend a while ago, here was what we concluded with (financial statement styled), for Careem only:

    You can earn around 100,000-110,000 by meeting the minimum targets on Careem, average 105,000rs for 10 rides daily, 30 days a month. That's your revenue.

    Revenue: 105,000
    Tax: 3050
    Tax is deductible here because this is your income, all further expenses etc. come at your own behest. I'm not sure if Careem cuts taxes on the payments made, this is worth looking into.

    Gross income: 101,950
    Costs
    - Driver: 25,000
    - Fuel: 33,000 (6000km monthly, 500ltr at 12km/ltr average)
    - Maintenance: 4,000 (oil, tuning, filters etc.)
    - Depreciation of asset: 6,500 (based on the price difference of getting a new City ~16lac vs a 5-year old city ~12lac over 60 months)
    - Insurance: 5,000

    Net Profit: 28,450

    Which is to say, you'll be earning 27-30k per month that you can spend anywhere. The depreciation money is assumed to be reinvested after 5 years in selling the old car and getting a new one.

    If you have the spare money to buy and manage some cars, 2-3 cars can net you almost 100k extra per month. This doesn't include the headache of maintaining the cars and managing your drivers.

    If you however have a full time job and want to consider driving Careem instead, I don't think these numbers will please you, the same way my friend decided it wasn't really worth it.

    Is this net profit for 1 car? (28,450)
    And which car is it for example? Corolla? City? Which year? Estimated price of it?

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    Quote Originally Posted by waleedr8 View Post
    Is this net profit for 1 car? (28,450)
    And which car is it for example? Corolla? City? Which year? Estimated price of it?
    Yes it is estimated profit without adding the upfront cost element of the car (only depreciation counted)

    To start this business one need to have the car or capital to buy yhe car.

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    I am also planning to join a uber partner or careem captain, but I have alot of questions in my mind regarding the earnings. I have tried searching on internet but couldn't find any details regarding payouts. All I know is they will tak 20% of your total earnings or something like that.
    It would be really appreciated and great help for me if you could explain either here or through pm that what is the earning in joining as the both platforms as a uber partner or careem captain. How much they will pay you for hourly basis.
    I have heard in other thread on pakwheels.. that they only pay you the trip fares from which they take their share.. after some calculation I have found that it would be impossible for a owner to maintain a car with that low payouts.. there must be some other benefits/perks involved like hourly basis etc. etc.
    Once again, please help in confirming as I have to take this big decision till Oct end..

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    Quote Originally Posted by aay-aar View Post
    I am also planning to join a uber partner or careem captain, but I have alot of questions in my mind regarding the earnings. I have tried searching on internet but couldn't find any details regarding payouts. All I know is they will tak 20% of your total earnings or something like that.
    It would be really appreciated and great help for me if you could explain either here or through pm that what is the earning in joining as the both platforms as a uber partner or careem captain. How much they will pay you for hourly basis.
    I have heard in other thread on pakwheels.. that they only pay you the trip fares from which they take their share.. after some calculation I have found that it would be impossible for a owner to maintain a car with that low payouts.. there must be some other benefits/perks involved like hourly basis etc. etc.
    Once again, please help in confirming as I have to take this big decision till Oct end..

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    Here you go: https://www.dropbox.com/s/fx2u9ie87k...-FAQs.pdf?dl=0

    Note: the fares have been adjusted to take out Careem's 20% cut - they are what the captain earns. The bonus structure is mentioned too.

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    Quote Originally Posted by v9sDEF View Post
    Here you go: https://www.dropbox.com/s/fx2u9ie87k...-FAQs.pdf?dl=0

    Note: the fares have been adjusted to take out Careem's 20% cut - they are what the captain earns. The bonus structure is mentioned too.
    Prepare to bookmark this post, as people will now continue to ask for same link again and again...

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    Default Corolla tf?

    Guys why would you buy a corolla when a cultus or mehran can get the job done...People prefer Go not economy so the best thing would be to get a 2012 cultus in a good condition and you can drive it on go and economy too.....my neighbour has 5 careem vehicles he drives corolla himself but his other 4 drivers...3 of them drive cultus2012 (yes all 3 of them are of same model because you can drive it on economy and on go aswell) and one drives vitz 2008 and he says ever since careem has introduced GO people only use economy when they cant find a GO So all the karachi folks out there if you're thinking of making an investment go for a cultus and get a driver who's actually above 40 and pay him at least 24k per month bc you can get driver in 18k too but trust me he will **** up your car by driving carelessly. You pay him 24k and obv he'll complete his 10 rides and 11hours(he has to complete both even if he gets his 10 rides in 8 hours he has to drive another 3 hours to get 12k bonus per month) each car gives you around 38000 profit per month and im only talking about karachi here I have no idea about other cities. So this is what its all about
    1. get an alto mehran or cultus which could be driven on both go or on economy. Because everyone prefers go and mostly economy drivers just sit in their car for an hour or two waiting for someone to book(not on weekends). Which gets the driver pissed and when he's pissed remember its not his car he's supposed to drive that car carelessly.
    2. Pay your driver at least 22000 to 24000
    3. If he drives for 11 hours and completes his 10rides or more daily for a month he gets another 12k from careem which has nothing to do with the owners.

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    Hey i want to do that but inform what process that its my cntct and whatsup no 03442118609

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    Plsss cntct me i want to know more about that 03442118609

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    In all honesty, this 28,450Rs net income with ability to reinvest a separate amount after 5 years after selling current car is not bad actually, suppose one doesn't opt for 1300cc and goes for 1000cc I think it's a pretty good investment.
    What are your thoughts on ambulance services? Give it a thought on black and white it will be lovely to see it through, thanks for the info.

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