Canadian Uber drivers face the monumental challenge of providing top-notch service with skyrocketing fuel prices.
It is challenging to focus on delivering an excellent passenger experience when you are worried about whether you are making enough to cover the cost of gas, which is over $2 per litre, and climbing daily.
Even if you are driving a hybrid, the cost of gas is eating into your margin and could force you out of a job unless you make some critical changes, namely switching from a gas-powered to an all-electric vehicle.
The automobile industry in Canada is at a crossroad
We all knew a day would come when gas-powered vehicles would no longer be an option; oil is finite; eventually, we will run out of it; the world has reached a point where we need to reduce the amount of carbon we are releasing due to transportation.
The Government of Canada has imposed carbon taxes which is making gasoline too expensive, so drivers are forced to switch to an EV, whether they want to or not.
Carmakers are retooling their plants to produce all-electric vehicles instead of gas-powered ones, but they require a capital injection from Ottawa to help with this massive transition.
Once carmakers have the new infrastructure in place, they will be able to produce a larger number of EVs, leading to an economy of scale.
As the number of EVs coming off the assembly line increases, the cost per unit is going to come down.
Reasons why you should use an EV for your Uber business
Your fuel costs are going to be predictable; electricity rates are not prone to wild pricing shifts like what we see with gasoline.
The cost to recharge your EV is pennies, and you can plan out your schedule so you are charging your car during non-peak periods, so you are fully charged to take advantage of surge pricing and not have to worry about getting fuel.
Since the EV requires less maintenance, you can spend more time ferrying customers instead of having your car in the shop for oil changes, radiator coolant flushes, etc… more time on the road means more cash in your pocket.
There are rebates available from the Government which can help offset the initial cost of the EV.
Since you are running a business, you might consider leasing the vehicle instead of buying it.
There are distinct tax advantages that come with leasing a vehicle for business purposes, but you need to check with your tax advisor for clarification.
Getting the best deal on an EV
Since you are considered self-employed, you will need to work with a car dealership in your area that has experience helping self-employed buyers.
Lenders want to make sure your credit score is high. You have sufficient income to meet the loan underwriting requirements, and the dealership credit experts will help with structuring the deal so you qualify for the most competitive terms.
Still, you need to head over to the dealership and get the ball rolling. The longer you delay making the switch to an EV, the more it will cost you to keep your gas-powered car on the road.
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