₦airaland Forum

Tgiirl:
Yes, only that new investors just won recoup their capital within a short period. Ehailing is not MMM

Carshopper:
wrong again

Phranex:
Hey guys,


is taxify/uber still profitable

MobilityExpress:
This is one very strange logic I found on this thread that I still don’t understand. And I find it equally surprising how many investors here have embraced it, whether grudgingly or otherwise. But the thing is, everyone has their own perspective or understanding of what works for them and it’s better for everyone to do whatever works for them. Now, in relation to your statement, let me just say share my own PERSONAL perspective and understanding that works for me:

An investor spends as much as 2.5m to buy a tokunbo car (let’s say a 2007 corolla) and put on the Uber platform. 2.5m includes money to
- pay for the tokunbo car
- pay to fix one or two things or issues that came with the car
- pay for general servicing (fluid changes like engine oil, transmission oil, coolants etc), parts changes like brake pads and/or lining, etc) in order to begin your own service history afresh because you don’t have the service history record of the last user abroad and since it’s for commercial use it’s better to do a comprehensive service before starting
- pay for comprehensive insurance
- pay for tracker
- pay for vehicle registration
- pay for Uber and Taxify registration
- pay for the logistics involved and other miscellaneous

Now the investor invested in the business to make profit, it’s not a charity organization. Now the average ROI he receives weekly is 35k, which means it will take approx about 72 weeks (1 year and 5 months) just to recover the capital invested alone, in an ideal situation where all things perfect and the 35k is paid consistently all throughout the period! But 72 weeks is not a small time and in practicality all things will not be perfect in that 72 weeks. Therefore, if we consider and make allowance for unforeseen circumstances etc, it might take 2 years just to recover his capital. So then what’s his profit? Simple, the value of the car is what every John Doe would say. But for the critical thinker, who can see outside the box, that’s not a good place to be, in fact it is a gamble where there a higher probability to lose than to win. Because the state or condition of the car in 2 years isn’t guaranteed and it is dependent mainly on the driver’s usage. So in 2 years, figuratively speaking, the car might be a dead car, a nearly dead car on life support, a car in coma, a car in average condition or a car in good condition. But the fact is, whichever the case is, the value of the car has significantly depreciated. Right now (September 2018), the average market range of a Nigerian used 2007 Corolla in pristine condition might go for around 1.5m assuming, but 2 years from now (September 2020), there is no way the car will be worth that much. A Corolla in pristine condition then might be around 700k, who knows, as the demand for Corolla might have dropped drastically. And that’s even for a personally used Corolla, now imagine if the buyer discovers the car was used for Uber for 2 years, it’s either the buyer runs away or offers you a ridiculously low price. Because he believes the car will be prone to plenty repairs due to heavy use. So to rely on the value of the car as your profit is blind gamble. You might win (if lucky) or you might lose (most likely). There’s no certainty with the outcome. The associated risks are just many and too dynamic to control. So it’s not wise for any sensible investor to depend on the car’s 3rd / 4th hand value as profit. I said 3rd / 4th hand value because this is a car that was driven for commercial purposes, not personal, so it has a faster depreciation rate and higher wear and tear. So to call it a 2nd hand car might be tantamount to an exaggeration or a subtle lie. Because of this factors, any serious investor that’s serious about making profits has to factor in his profits with the ROI generated during the cars usage. So then, we already established it might take approx 2 years to make 2.5m capital back, then depending on what the investor sees as profit, but for the sake of illustration, let’s say 2m, then it might take another approx 58 weeks (1 year, a month and half) in an ideal situation. But the situation can never be ideal. It will be real. So in reality it might take a year and half), if we factor in the realism of the business. This makes it 3 1/2 years. Let’s round it up and say 4 years. So looking at this business critically and practically, a 2.5m investment of a tokunbo car in perfect condition to run on Uber and Taxify will only be profitable with CERTAINTY if the car runs for 4 years at 35k weekly. 4 years is not a joke! That’s the time it takes to graduate from a social science course in a private Uni in Nigeria. 4 years of hard labor on a car (even though properly serviced within that 4 years) driving on our bad roads shared with many crazy road users will still take it’s toll on the car and eat its pound of flesh. So the state / value of the car at that point is almost negligible. And if it’s has average value, then you know heavy money has been invested into its upkeep.

Now if the 35k weekly is going mainly as an ROI to the investor, then someone still wants the investor to take out of the same money for vehicle maintenance, then that person is a joker. The investment will crash and then investor will ultimately never make any profits but also will eventually lose his initial investment. People need to understand that until they make their capital back, they have not even started business at all. This is the undiluted irrefutable truth. Therefore, the only feasible recovery plan and path to profitability is for the car to generate not only the investors ROI weekly but also money for maintenance. In other words, the car operates on a dynamo system, the investors job is to kickstart it (make an investment of a car in excellent condition), then the car runs itself continuously by itself without needing the investors to pump in more money endlessly like pouring water inside a leaking basket.

There’s more to say but i’m tired of typing do now. Maybe later today (or tomorrow or next week, or next month ) when I’m in the mood again and have the time, I will re-edit this post and add the other things I want to include. After I finish the investors perspective, I will also add from a driver/partners perspective. But as a further reminder, this is personal to me, this is what I believe and know will work for me, so nobody should take it as a blueprint for everybody. Do whatever makes you happy as an investor, but whatever you do, try not to lose your investment because i’m yet to meet anyone that was happy he lost his millions for nothing. And for anyone that’s not in agreement with my post or has objections or angry about it, just ignore the post, no need for endless arguments, confrontation or bitter utterances. I will not respond.

Phranex:
Hey guys,


is taxify/uber still profitable

Chuwaa:
Troll!

Tgiirl:
Yes, only that new investors just won recoup their capital within a short period. Ehailing is not MMM

Carshopper:
1. there is no short time frame to recoup
min of 1year 5months to get 75% isn't short... longest been 2years

2. if you are not interested in the transportation business don't try it.

3. ehailing isn't MMM and it's not an investment.

4. it's not an investment because drivers amongst other factors will kill the investment before it's starts.

5. Ehailing is simply ride-sharing - putting ur car to use when it's available

6. Drivers don't learn how to effectively deliver a strategy that benefits the process, so u find out that they just drive the vehicle till it goes under.

7. Owners need to deploy decreasing rental strategy and alternate work days if they want to survive

8. I don dey go

MobilityExpress:
This is one very strange logic I found on this thread that I still don’t understand. And I find it equally surprising how many investors here have embraced it, whether grudgingly or otherwise. But the thing is, everyone has their own perspective or understanding of what works for them and it’s better for everyone to do whatever works for them. Now, in relation to your statement, let me just say share my own PERSONAL perspective and understanding that works for me:

An investor spends as much as 2.5m to buy a tokunbo car (let’s say a 2007 corolla) and put on the Uber platform. 2.5m includes money to
- pay for the tokunbo car
- pay to fix one or two things or issues that came with the car
- pay for general servicing (fluid changes like engine oil, transmission oil, coolants etc), parts changes like brake pads and/or lining, etc) in order to begin your own service history afresh because you don’t have the service history record of the last user abroad and since it’s for commercial use it’s better to do a comprehensive service before starting
- pay for comprehensive insurance
- pay for tracker
- pay for vehicle registration
- pay for Uber and Taxify registration
- pay for the logistics involved and other miscellaneous

Now the investor invested in the business to make profit, it’s not a charity organization. Now the average ROI he receives weekly is 35k, which means it will take approx about 72 weeks (1 year and 5 months) just to recover the capital invested alone, in an ideal situation where all things perfect and the 35k is paid consistently all throughout the period! But 72 weeks is not a small time and in practicality all things will not be perfect in that 72 weeks. Therefore, if we consider and make allowance for unforeseen circumstances etc, it might take 2 years just to recover his capital. So then what’s his profit? Simple, the value of the car is what every John Doe would say. But for the critical thinker, who can see outside the box, that’s not a good place to be, in fact it is a gamble where there a higher probability to lose than to win. Because the state or condition of the car in 2 years isn’t guaranteed and it is dependent mainly on the driver’s usage. So in 2 years, figuratively speaking, the car might be a dead car, a nearly dead car on life support, a car in coma, a car in average condition or a car in good condition. But the fact is, whichever the case is, the value of the car has significantly depreciated. Right now (September 2018), the average market range of a Nigerian used 2007 Corolla in pristine condition might go for around 1.5m assuming, but 2 years from now (September 2020), there is no way the car will be worth that much. A Corolla in pristine condition then might be around 700k, who knows, as the demand for Corolla might have dropped drastically. And that’s even for a personally used Corolla, now imagine if the buyer discovers the car was used for Uber for 2 years, it’s either the buyer runs away or offers you a ridiculously low price. Because he believes the car will be prone to plenty repairs due to heavy use. So to rely on the value of the car as your profit is blind gamble. You might win (if lucky) or you might lose (most likely). There’s no certainty with the outcome. The associated risks are just many and too dynamic to control. So it’s not wise for any sensible investor to depend on the car’s 3rd / 4th hand value as profit. I said 3rd / 4th hand value because this is a car that was driven for commercial purposes, not personal, so it has a faster depreciation rate and higher wear and tear. So to call it a 2nd hand car might be tantamount to an exaggeration or a subtle lie. Because of this factors, any serious investor that’s serious about making profits has to factor in his profits with the ROI generated during the cars usage. So then, we already established it might take approx 2 years to make 2.5m capital back, then depending on what the investor sees as profit, but for the sake of illustration, let’s say 2m, then it might take another approx 58 weeks (1 year, a month and half) in an ideal situation. But the situation can never be ideal. It will be real. So in reality it might take a year and half), if we factor in the realism of the business. This makes it 3 1/2 years. Let’s round it up and say 4 years. So looking at this business critically and practically, a 2.5m investment of a tokunbo car in perfect condition to run on Uber and Taxify will only be profitable with CERTAINTY if the car runs for 4 years at 35k weekly. 4 years is not a joke! That’s the time it takes to graduate from a social science course in a private Uni in Nigeria. 4 years of hard labor on a car (even though properly serviced within that 4 years) driving on our bad roads shared with many crazy road users will still take it’s toll on the car and eat its pound of flesh. So the state / value of the car at that point is almost negligible. And if it’s has average value, then you know heavy money has been invested into its upkeep.

Now if the 35k weekly is going mainly as an ROI to the investor, then someone still wants the investor to take out of the same money for vehicle maintenance, then that person is a joker. The investment will crash and then investor will ultimately never make any profits but also will eventually lose his initial investment. People need to understand that until they make their capital back, they have not even started business at all. This is the undiluted irrefutable truth. Therefore, the only feasible recovery plan and path to profitability is for the car to generate not only the investors ROI weekly but also money for maintenance. In other words, the car operates on a dynamo system, the investors job is to kickstart it (make an investment of a car in excellent condition), then the car runs itself continuously by itself without needing the investors to pump in more money endlessly like pouring water inside a leaking basket.

There’s more to say but i’m tired of typing do now. Maybe later today (or tomorrow or next week, or next month ) when I’m in the mood again and have the time, I will re-edit this post and add the other things I want to include. After I finish the investors perspective, I will also add from a driver/partners perspective. But as a further reminder, this is personal to me, this is what I believe and know will work for me, so nobody should take it as a blueprint for everybody. Do whatever makes you happy as an investor, but whatever you do, try not to lose your investment because i’m yet to meet anyone that was happy he lost his millions for nothing. And for anyone that’s not in agreement with my post or has objections or angry about it, just ignore the post, no need for endless arguments, confrontation or bitter utterances. I will not respond.

Carshopper:
still wrong

ziddy:
You told the truth in the entire post. The only thing missing in this write-up is the fact that uber has sold its Nigerian 'partners' a dummy, right from the day it slashed fares by 40%.

I've been saying it on this forum for quite a while, even driver-partners are actually running at a loss because the vehicle becomes junk at the end of the day. The only reason they are getting off easy is because Nigeria lacks carfax/vehicle maintenance & usage documentation. Once you disclose the high actual mileage of a car or the fact that it has been used in a taxi-fleet, the resale value drops drastically.

Uber is ripping off its Nigerian partners with impunity. You cannot compare the state
of Nigerian roads, or the level of technical expertise available for maintenance here, with the western world. These are the factors that speak directly to your bottomline.

Uber factors only the cost of living and the market size into their business model. This is irresponsible and wrong! Already they've killed off the yellow cabs in Lagos. Private taxi is not for everyone in Nigerian society!

alstarmayo:
Because their eye dey shook for the money, but I remember vividly you were always against it, because they will over use the car

ziddy:
You told the truth in the entire post. The only thing missing in this write-up is the fact that uber has sold its Nigerian 'partners' a dummy, right from the day it slashed fares by 40%.

I've been saying it on this forum for quite a while, even driver-partners are actually running at a loss because the vehicle becomes junk at the end of the day. The only reason they are getting off easy is because Nigeria lacks carfax/vehicle maintenance & usage documentation. Once you disclose the high actual mileage of a car or the fact that it has been used in a taxi-fleet, the resale value drops drastically.

Uber is ripping off its Nigerian partners with impunity. You cannot compare the state
of Nigerian roads, or the level of technical expertise available for maintenance here, with the western world. These are the factors that speak directly to your bottomline.

Uber factors only the cost of living and the market size into their business model. This is irresponsible and wrong! Already they've killed off the yellow cabs in Lagos. Private taxi is not for everyone in Nigerian society!

Chuwaa:
This meme was for dru, but I dash you. Dru you de my radar. Still sourcing for you.

Dovehorizon:
That was a nice analysis.

Right now, the business is more like a means to an end and not really a good investment based on the fact that it would take a long time to break-even except you are driving the car yourself. Why should I invest 2.5m in a business only to get back my capital in 72weeks (72weeks is highly impossible when you factor in wear and tear, lastma, police, health related issues, theft etc) and my profit is whatever is left of the car. I would rather invest such amount in a biz that would give me 100% in less than a year...

You can invest if you are getting a sound car at a relatively cheap price but spending 2.5m to invest in uber/taxify is a no no. If you have noticed, Gazzuzz used to have more than a certain number of cars on the platform but right now be has reduced it, same as Dru and other silent investors.

E-hailing isn't a good investment for quick cash (Investor's point of view) ...

Dovehorizon:
That was a nice analysis.

Right now, the business is more like a means to an end and not really a good investment based on the fact that it would take a long time to break-even except you are driving the car yourself. Why should I invest 2.5m in a business only to get back my capital in 72weeks (72weeks is highly impossible when you factor in wear and tear, lastma, police, health related issues, theft etc) and my profit is whatever is left of the car. I would rather invest such amount in a biz that would give me 100% in less than a year...
[b[b]]You can invest if you are getting a sound car at a relatively cheap price but spending 2.5m to invest in uber/taxify is a no no.[/b] [/b]If you have noticed, Gazzuzz used to have more than a certain number of cars on the platform but right now be has reduced it, same as Dru and other silent investors.

E-hailing isn't a good investment for quick cash (Investor's point of view) ...

Tgiirl:
We need more cars on uber/Taxify and less trip cancelation

manny656:
Kindly explain please !

MoonlightDrive:
Just had my first back to back Chinko drive. Picked the first guy on uber, then the next was a lady on taxify. Chinko ti take over!

Tgiirl:
Soon, I myself will stop uber/Taxify .. Its now getting too boring and taking too long to get a request most times sorted in the car for hours.

Time is precious and I hate to waste that time. Looking for other things to do that will at the same time fetch me some money rather than sitting in a car for 15hours per to strike 7k net and most times less.

Jomandi13:
Go for forex training seminal then.

MobilityExpress:
Now if the 35k weekly is going mainly as an ROI to the investor, then someone still wants the investor to take out of the same money for vehicle maintenance, then that person is a joker. The investment will crash and then investor will ultimately never make any profits but also will eventually lose his initial investment. People need to understand that until they make their capital back, they have not even started business at all. This is the undiluted irrefutable truth. Therefore, the only feasible recovery plan and path to profitability is for the car to generate not only the investors ROI weekly but also money for maintenance. In other words, the car operates on a dynamo system, the investors job is to kickstart it (make an investment of a car in excellent condition), then the car runs itself continuously by itself without needing the investors to pump in more money endlessly like pouring water inside a leaking basket.

maybachmusic:
is this car ok for taxify