Being a Private Hire Vehicle (PHV) driver in Singapore isn’t as glamorous or profitable as social media might suggest. While some drivers claim they can earn up to $10,000 a month, the reality is far more complex. The road ahead is becoming more challenging, with more drivers entering the market, lower base fares, and the introduction of CPF contributions which squeeze your take-home income.
Becoming a private hire driver may sound easy, but it’s definitely not as simple as it seems. Whether you’re driving for Grab, Gojek, or another platform, the industry is evolving, and the competition is fierce. If you’ve been on the road for a few years but are still struggling, know that you’re not alone.
There are driver communities where experienced drivers are ready to share tips, strategies, and guidance to help you work smarter, not harder. Building a support system of like-minded drivers is crucial for success – driving alone often leads to burnout and frustration. With the right approach, you can stay motivated, learn quickly, and build a sustainable income in this trade.
The $10,000/month Myth – A Realistic Breakdown
Some drivers say they take home $10,000/month, but here’s what that really involves:
To nett $10,000/month, your gross earnings must be about $14,000. That’s because average monthly expenses look like this:
- Car Rental: $2,300/month (Based on $75/day for a hybrid vehicle)
- Fuel: $1,200/month
- Total Expenses: $3,500/month
To hit this gross target
You need to earn $467/day, every day for 30 days.
With an average income of $30/hour, that’s about 15.5 hours of driving daily.
Add 1.5 hours for meals and toilet breaks = 17 hours/day on the road.
That leaves only 7 hours for sleep, and no time for rest, social life, or family.
This is not sustainable long-term, especially if you’re older or have family commitments. Most average PHV drivers in Singapore realistically earn between $3,000 to $5,000/month, depending on effort, KPIs, and vehicle costs.
Who Can Be a PHV Driver in Singapore?
To legally drive a PHV here, you’ll need:
- Singapore citizenship
- Valid Class 3/3A licence (at least 2 years’ experience)
- Minimum age: 20 years (for most rental companies)
- Private Hire Car Driver’s Vocational Licence (PDVL) or Taxi Driver’s Vocational Licence (TDVL)
- Safe driving record (less than 16 demerit points)
Popular PHV Car Types in Singapore
- Hatchback: Small, fuel-efficient cars perfect for city driving – e.g. Honda Fit, Toyota Prius.
- Sedan: Comfortable and practical with good boot space – e.g. Toyota Corolla Altis, Mazda 3.
- SUV: Spacious and versatile for passengers and luggage – e.g. Honda Vezel, Hyundai Kona, Toyota C-HR.
- MPV: Ideal for families or groups needing extra seats – e.g. Toyota Sienta, Toyota Prius Plus.
- Hybrid & Electric: Eco-friendly and cost-saving options – e.g. BYD Atto 3, Toyota Prius, Honda Vezel Hybrid.
You can go for a fuel-efficient car like the Toyota Prius and avoid big MPVs unless you’re driving full-time – they’re expensive and tiring to handle for short shifts. Here’s why:
- Excellent fuel economy – One full tank (~$85) can last up to 1,000km, helping you earn up to ~$900.
- Strong performance – It’s a 1.8cc car with great power for city driving.
- Rental is manageable – An older Prius costs around $85/day, or $595/week.
- Add fuel costs (~$170/week), and your total expenses are around $765/week, which is reasonable if you’re earning $2,000 or more.
Higher rental is fine if you’re putting in the hours — the car pays for itself and earns you a decent profit.
What to Look for in a PHV Rental Company
Before you sign anything, ask:
- Are the cars well-maintained?
- What are the rental terms and mileage limits?
- What happens in an accident?
- Can you drive to Malaysia?
- What’s the deposit policy?
- Can someone else drive the car?
- Does the rental cover personal use?
Also, decide if you’re driving full-time or part-time. It affects your car choice, rental duration, and budget.
KPIs, Algorithms & Incentives – How Apps Reward Drivers
Consistency matters in this trade. The longer you stay active on an app, the more the system learns to recognise you.
To increase your job flow and earnings
- Acceptance Rate (AR): Accept as many jobs as possible.
- Cancellation Rate (CR): Cancel only when truly necessary.
- Driver Rating (DR): Maintain a high rating through polite, efficient service.
- Trip Count: Higher number of completed trips = more bonuses.
Higher-tier drivers (like “Warrior” or “Elite” level on Grab) often enjoy
- Faster pings
- Better-paying jobs
- Exclusive incentives
Income Strategies and Maximizing Earnings
How to maximize earnings through promotions, incentives, and bonuses
- Surge pricing: Understanding peak times (like rush hours, weekends, public holidays, and events).
- Platform-specific incentives: Grab, Gojek, etc., may have different incentive structures and bonuses for new drivers, hitting target rides or working during high-demand times.
- Multi-platform driving: Working on multiple platforms (Grab, Gojek, Ryde, etc.) to increase ride requests and avoid slow periods on one app.
Know the Hot Zones – Where the Riders Are
Familiarity with tourist hotspots and event venues can boost earnings through more frequent bookings and higher surge fares. Share this knowledge with tourists – you may get tipped!
Top Tourist Hotspots
- Gardens by the Bay
- Marina Bay Sands SkyPark
- Sentosa (Universal Studios, Siloso Beach)
- Singapore Flyer
- Merlion Park
- Botanic Gardens
- Chinatown
- Little India / Mustafa
- Orchard Road
- Jewel Changi Airport
- Clarke Quay
- Singapore Zoo & Bird Paradise
- Event/Activity Hotspots:
- National Stadium & Indoor Stadium (sports & concerts)
- Bugis Street
- Lau Pa Sat (famous satay zone)
- Dempsey Hill (dining and nightlife)
Caution Before You Commit Long-Term
Before you sign a long-term rental contract or take on a car loan, take a step back and consider the current economic uncertainties that could affect your PHV income.
- New Drivers: Stick to short-term rentals (1–3 months) to test the waters
- Experienced Drivers: Consider mid-term contracts (3–6 months)
- Veterans: Only take up long-term contracts if you are financially and mentally prepared
And no matter how tempting it may be, avoid committing to a car loan unless absolutely necessary. Even if you have the cash – save it for emergencies. In unpredictable times, flexibility and liquidity are your greatest assets. Driving full-time can be a reliable source of income, but only if you plan ahead and stay adaptable.
The Hidden Costs of PHV Driving
The financial pressures for PHV drivers are substantial and often overlooked. While it may seem like you’re earning a lot, you lose out on many of the benefits that come with traditional employment:
- No medical leave: PHV drivers don’t get paid for sick leave or hospitalization leave.
- No annual leave: There’s no paid vacation or leave, meaning you must work continuously to earn.
- No employer CPF contribution: Unlike salaried employees, PHV drivers have to contribute to CPF on their own and also top up their Medisave.
- No 13th month or performance bonuses: PHV drivers miss out on these standard benefits that employees in other industries enjoy.
Additionally, when you calculate your earnings, you often realize how little you make after all the deductions. For example:
- Low fares: For a 5km ride, you may need to drive an extra 2km just to reach the passenger. After completing the ride, you end up with only $3.60 after the 20% platform commission is taken off.
- Car expenses: Even if you’re renting the car, you still need to consider the wear and tear, tyre replacements, fuel, and general maintenance costs. If you own the car, you’re fully responsible for all these costs.
The Reality of Struggling Drivers
The financial struggle is real for many drivers. After all the costs are accounted for, a typical PHV driver might only take home around $2,000 in a month, especially after working long hours and sacrificing family time. For those with families to feed and bills to pay, this can be a difficult reality to accept.
Before making the switch to full-time PHV driving, it’s crucial to carefully calculate the potential costs and risks. Once you commit to the role, it can be hard to get out of, as many drivers find themselves trapped in a cycle of low earnings and long hours.
A New Opportunity: PHV Drivers Wanted for Part-Time Financial Advisory Work
At InsuranceJobs.sg, we’re seeking PHV drivers interested in working part-time in the financial advisory industry while continuing their work as a PHV driver.
This isn’t just another side hustle. We’ve developed a proven methodology designed to help PHV drivers grow their financial advisory business with comprehensive training, mentorship, and flexible hours.
If you’re already spending long hours on the road, why not invest some of that time into building a second, more sustainable income – one that offers awesome recurring revenue?
Requirements to Be a Financial Advisor in Singapore
- At least 21 years old
- Singapore Citizen or PR
- Minimum qualification: GCE ‘A’ Levels with 3 H2 passes, Diploma, or Degree (local or recognised)
- Clean financial and legal record
- You must be committed to passing the CMFAS Examinations. We will sponsor the exam fees, assist with booking the exams, and provide mock papers (all multiple-choice) to help you breeze through the exams with ease.
Why This Matters for PHV Drivers
You already meet people daily – you understand service, reliability, and people management.
You can scale your hours gradually while still driving.
It’s a path toward long-term career security with potential for growth and flexibility.
PHV driving is not a get-rich-quick scheme. The reality involves long hours, rising costs, and competition from both new drivers and evolving platforms. With upcoming shifts in the market (like GrabTaxi absorbing more demand), now is the time to plan ahead.
If you’re already a driver and want to future-proof your income, consider exploring financial advisory with InsuranceJobs.sg. Whether you’re aiming to earn more, spend less time on the road, or build a career that supports your family and health, this could be the right next step. Message us to find out how PHV drivers like you can start a meaningful part-time career in financial services.
Drive smart. Plan smarter. Your future doesn’t end with the next ping.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
