Abstract
This study estimates the economics of e-hailing drivers by analysing the results from a survey conducted on 254 drivers focused on their revenue and also expenses. Revenue includes basic fares and tips they collected while driving, while expenses can be further dived into operational expenses, taxes and social security packages (socso, epf, insurance). Results estimated that drivers averages 120 trips per week and average yearly revenue can up to MYR 59,184 inclusive of tips. However, factoring the operational expenses, their net profit per year can drop to MYR 10,107 - 13,983 subject to taxes, insurance and social security commitments. The net profit of driver is way less than the Malaysia minimum wage policy. Social securities were perceived as secondary for most drivers when it comes to welfare concerns. Policy implication were discussed with concerns of over-regulations will diminish the e-hailing industry and the welfare of drivers indirectly.
Highlights
This study found out that driving e-hailing services in long run might be not sustainable, as the revenue is offset by the costs
By substituting mileage claim as the costs of maintenance and fuel, the yearly earnings of drivers can drop to RM13,983
In scenario 2, the yearly earnings can further dropped to RM10,177
Summary
1. This study provides evidence on the economics of e-hailing drivers by focusing on their revenue and expenses. 2. This study found out that driving e-hailing services in long run might be not sustainable, as the revenue is offset by the costs. 3. Driving e-hailing service full-time will be challenging, perhaps it is more suitable for parttime drivers. The objective of this study is to analyse and understand the welfare status of e-hailing drivers in Malaysia.
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