How much does an Ola Mini cab earn on average per month from an investor's point of view in Mumbai?

Calculating the average earnings of an Ola Mini cab in Mumbai from an investor's perspective involves understanding several factors, including the driver's income, operational costs, and incentives. Here's a breakdown based on available data:

Income Model for Ola Drivers

1. Cash Received from Passengers: Drivers earn money from fares paid by passengers. For example, if a ride costs ₹165, the driver receives ₹124 after Ola's commission (20%) and GST (5%) are deducted3.
2. Incentives from Ola: Drivers receive incentives based on a Minimum Business Guarantee (MBG) model, which ensures a minimum daily revenue. This can significantly boost earnings if targets are met3.

Operational Costs

1. Car Loan: Assuming a new car like a Maruti Swift costs ₹580,000, with a loan of ₹555,000 over 5 years at 9.5% interest, the annual loan cost is approximately ₹142,6473.
2. Daily Running Costs: These include fuel and driver wages. Assuming fuel costs about 35% of the daily operator's bill and wages are at least ₹600 per day or 30% of the bill, whichever is higher3.
3. Insurance and Maintenance: Annual insurance and maintenance costs add up to around ₹81,815 (insurance and tax: ₹41,486, maintenance: ₹40,329)3.

Average Earnings for Ola Mini in Mumbai

While specific data for Ola Mini in Mumbai isn't available, we can estimate based on general trends:

• Average Monthly Income: Assuming an average daily income of ₹1,500 to ₹2,100 (common MBG targets), this translates to ₹45,000 to ₹63,000 per month, depending on the number of working days and incentives earned.
• Net Profit: After deducting operational costs, the net profit would be significantly lower. For instance, if the annual operational cost is around ₹534,400, the monthly cost would be approximately ₹44,533. Thus, the net profit could range from a few thousand rupees to around ₹18,467 per month, depending on the specific costs and earnings.

Conclusion

From an investor's perspective, the average monthly earnings of an Ola Mini cab in Mumbai would likely be in the range of ₹45,000 to ₹63,000 before operational costs. After deducting costs, the net profit could be significantly lower, potentially ranging from a few thousand rupees to around ₹18,467 per month, depending on the specific operational costs and incentives earned. However, these figures are estimates and can vary based on actual performance and costs.