How to Start Your Own Grabcar Business

Grabcar Business

I’ve been in the Grabcar business since 2017. During that time, the LTFRB doesn’t care much about TNVS industry and other ride-sharing platforms. The driver’s income was also higher because Uber and Grab are still competing with one another. As of this writing, I am still operating my business but this time I already have my franchise issued by the LTFRB which allow me to legally operate my business. This business is not easy to operate but it is very rewarding. Allow me to share with you my learning as a Grabcar peer (operator).

My First Encounter with TNVS

My first encounter with TNVS was with Uber when I became its passenger. The first thing that comes to my mind when I first used Uber is that it is very convenient but it was very expensive too! The cost of the ride from Mandaluyong to Makati was around 500 Pesos. Despite the cost, I still felt that it was worth it because it is really very convenient. I didn’t need to wait too long to get a ride. I’ve been trying to hail a taxi but they kept refusing to give me a ride. It was then that I realized that TNVS is a good business venture.

Buying a car

The first car that I bought for TNVS business was a brand new Mitsubishi Mirage G4 2017. There are 4 reasons why I chose this car and these are:

  1. It is fuel-efficient
  2. It has low monthly amortization (12,987 Pesos per month)
  3. It is affordable to repair
  4. The replacement parts are easier to find

Fuel efficiency is very important in this kind of business. As we all know, the price of gasoline in the Philippines is very expensive and it continues to go up every year. In order to increase the income of your driver, your car must be fuel-efficient. If your driver will not earn, then your driver might quit if he doesn’t find driving profitable.

Amortization Cost is your biggest expense every month. Buying a car that have higher amortization cost doesn’t make sense to me. I don’t intend to use the car personally so I didn’t consider buying a fancier car. The lower the amortization cost, the easier it is to profit from the business. PERIOD.

Repair and maintenance cost is also a regular expense that you have to shoulder every month. I make sure I regularly change the oil to keep the engine running in good condition. I also make sure that the mechanic checks all possible damages so that we can repair it immediately. Mitsubishi auto parts are cheaper that is why my repairs and maintenance cost is lower compared to other TNVS operators who are using another brand of cars (except for Toyota of course).

Replacement parts for Mitsubishi Mirage are easier to find too! Since the car will be used almost every day, wear and tear of the auto parts are inevitable. I need to be sure that I can easily find the replacement parts.

Grabcar Operating Cost

LOOK! There are many things that you need to prepare for so make sure you handle your finances effectively. When I was just starting, I used all the money that I earned and didn’t save much for emergencies. I almost lost the car when it had to be repaired due to an accident and I don’t have many funds to pay for the amortization. LESSON LEARNED. Avoid this mistake if I were you. There are also other things that you need to prepare for. Below is a list of my expenses and my operating cost for Grabcar:

  1. Amortization Cost: 13,000 Pesos per month
  2. Maintenance Cost: 2000 to 5000 Pesos per month (depends if I need to repair something)
  3. Comprehensive Insurance Cost for TNVS: 1000 Pesos per month (for 12 months)

My total monthly operating cost is from 17,000 to 20,000 Pesos per month excluding expenses for car registration with LTO and LTFRB franchise.

Grabcar Operator’s Income

For an operator collecting 1,000 Pesos per day, his gross monthly income will reach 26,000 Pesos. We assume that the operator is not collecting boundaries during coding days of the car. With a monthly expense of 17,000 to 20,000 Pesos, the net profit would be 6,000 to 9,000 Pesos. In most cases, this income is not enough for sustaining the whole family but this is good enough to cover some regular expenses like electricity, water or maybe groceries.

Gross IncomeTotal ExpensesNet Profit
26,000 Pesos17,000 to 20,000 Pesos6,000 to 9,000 Pesos

Personally, I don’t earn that much but I am happy with what I am getting. If the operational cost is high, your net profit will be low as well. If you have 3 cars, I can say that the earnings are decent enough to support some of your expenses. Having 3 cars is like having an apartment that earns 18,000 Pesos to 27,000 Pesos per month.

Your Grab Driver

Your Grab car driver is the key ingredient to the success of your business. Before you allow him to drive for Grab, secure valid government ID, proof of residency and NBI clearance for security measures. You are paying hard-earned money for your car so it is just right to make sure that you entrust your car to someone you did a background check.

Next, let driver operate his own business. What is important to you is that you get paid and that he doesn’t use your car illegally. Allow him to provide other services using your car. He is doing this so that he can feed his family and also, to pay the regular boundary. If you don’t trust him at all with your car, then don’t let him drive in the first place.

To increase your success in the business, make sure that you compensate your driver well. In my business, I make sure that my driver earns more than what I earn. After all, he does all the hard work. I also included benefits that he can use in the future. For instance, after 5 years of his commitment to me, I will give him the car. This is called boundary hulog for Grab Driver. This benefit increases the likelihood that your driver will stay with you longer and it is both beneficial to you and your driver. Lastly, your driver is your business partner – always remember that!

Secrets to Success

  • VERY IMPORTANT: Take care of your driver. Your driver is the key to success of your business. Take care of him and he’ll take care of your business in return. Treat him fair and square at all times.
  • Install a GPS. Buying a car is a huge investment especially for ordinary people like me. Having a GPS installed increases your car’s security feature.
  • Buy an insurance that covers vehicles used for TNVS. Some insurance companies does not cover vehicles used for TNVS.

Have you decided to be a Grabcar Operator? Here is the list of requirements for GrabCar

31 Comments

      • Hi sir. What happens after three years? Do you have to buy and register a new vehicle? Ibig sabihin, kung mayroon akong 5-year auto loan, hindi pa ko tapos sa loan ko pero hindi ko na puedeng gamitin for Grab yung sasakyan?

        • You can use a brand new car for 7 years (if the model of the car is 2020). So kung 2019 yung model ng car, 6 years na lang…

  1. Pano po yun if after 3 years kelangan naba magpalit ng car? It will defeat the purpose of giving the car to the driver after 5 years. Curious lang po

    • You can use a brand new car for 7 years (if the model of the car is 2020). So kung 2019 yung model ng car, 6 years na lang…

    • Sa experience ko as an operator, yung mga driver ko kumikita ng pinakababa na yung 15600 per month. 600 per day hindi pa kasama mga incentives (minsan meron minsan wala). May driver din ako na masipag hindi bumababa sa 20,000 yung kita sa isang buwan plus incentives pa.

      • Meron po ako sasakyan kaao di ko po alam pano ipasok sa grab? Pede po makakuha ng oonting tops at tulong na din… salamat

      • @juan, boss operator ka pla. Magkano boundary mo? Hati ba kyo ng driver sa gastos like sa kanya ba gas at syo ang maintenance? Bka pede ka mag compute Based on experience mo. Plan ko kasi din mag operator ng grab. Btw Ilan kotse mk naka reg sa grab. If ok kasi pede naman mag multiple kotse. Thanks in advance.

  2. Paano po pag kakabili ko lang ng sasakyan 2018 model with grab na daw siya paano ko po ito magagamit as grab car? My mga need po ba na requirements? Salamat

  3. Sir, do you recommend buying a car and applying for grab during this time of pandemic? O baka hindi po kumita at di mapunan ang monthly amortization? Thanks!

    • No. LTFRB does not accept application right now. Hindi ka makakapasok sa kahit anong TNC company without LTFRB approval.

  4. Sir, kung mag-avail po ba ako ng 2nd hand grab car na hulugan at ma-consume ko na po ang 7years maturity nito as grab sa 2023 pero hindi pa naka-transfer sa name ko dahil deed of sale lang po ang panghahawakan ko. Pwede ko po kaya mailipat sa name ko yung tnvs franchise kung mag-avail uli ako ng brand new car loan sa 2023?

  5. Gud day po sir! Ask ko lang po kung mag-avail ako ng grab ready pasalo tapos na-consume ko po sa 2023 ang 7years maturity nito sa tnvs grab car. Pwede po kaya maipalipat sa name ko mga requirements na kailangan sa ltfrb kung kukuha ako ng brand new car sa 2023?

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