Loans for Grab drivers: How to manage the costs of ride-sharing
The explosive rise of ride-sharing services hasn’t just been a game-changer for consumers. Singaporeans looking for a career change or a side hustle have flocked to brands like Grab in droves, snatching up the opportunity to earn some cash in a rapidly evolving industry. But what are the benefits and associated costs of driving for Grab, and how can you make it worth your while?
The benefits of becoming a Grab driver
The nature of ride-sharing apps has completely transformed how drivers operate, making it far easier for private citizens to sign up quickly and work flexible hours. These low barriers for entry contrast with traditional taxi services, effectively allowing drivers to be their own boss by choosing when and for how long they work.
While some enjoy driving full time, Grab is equally suitable for those seeking a side hustle that brings in some extra cash to supplement their main job. Drivers can choose to take passengers, deliver food or do both, and can take advantage of perks like fuel rebates. As long as you meet the eligibility requirements for driving or delivering, you can get started in no time at all.
Driving with Grab: Costs to account for
Before you race to file your application and warm up the engine for your first shift, it’s important to calculate your costs to make sure you get the most out of driving with Grab. Assuming you already own or rent a car that meets the company’s minimum standards, there are some important expenses that are often overlooked by new drivers:
You’ve probably thought about fuel already, but do you actually know how much you’ll need to spend? Whip out the calculator and make some estimates so you don’t underestimate your fuel costs, and be sure to take advantage of any suitable rebate schemes.
Vehicles need ongoing care to run smoothly, especially when you’re using them frequently to earn fares with Grab. Try to calculate how long you plan to drive per week, or how many kilometres, to help budget for ongoing maintenance.
Keeping your car neat and tidy isn’t the only part of your obligations as a Grab driver: it’s an easy way to keep you and your customers happy. Even if you skip the car wash and clean it yourself, you’ll need to invest in cleaning products and dedicate your own time to the task.
Even a well-maintained car will break down from time to time. Now that it’s part of your business, it’s important to have enough money set aside for new tires, roadside assistance and emergency repair costs required to get you back on the road and earning money.
Grab’s coverage for drivers and passengers is limited, so you’ll want to consider adding insurance that covers damage to your vehicle. Most standard policies don’t cover commercial use, so make sure you choose one that specifically includes your time on the clock.
It’s easy to forget about the cost of food while driving for Grab, but you’ll quickly realise how expensive it can get if you don’t think ahead. The longer your shift, the more likely it is you’ll get hungry on the road – potentially a long way from home. Budget for takeaway meals or plan your trips carefully to allow time to slip home for a quick bite to eat.
Are there loans for Grab drivers?
Taking out a Grab financial loan from a licensed moneylender can be a great way to cope with the fluctuating costs of being a driver in Singapore, though it’s important to assess whether it suits your individual circumstances.
Grab has its own in-house lending arm for drivers and other borrowers, though you can explore fixed-rate financing offers by third parties as well. You can get started by comparing Grab loans online to find a deal with the most affordable repayments and competitive terms as per your unique needs. An instant quote through CompareSing gives you rapid insight into the loans available and how they weigh up against the competition.