Evaluation of E-hailing Driver’s Welfare: An Analysis on Driver’s Revenue and Expenses

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.