Daily takings are not profit. Here is a simple way to see what each minibus, taxi or bus really earns you.
Ask a minibus or taxi owner what the business makes and most will tell you the daily takings. But takings are only half the story. What matters is what is left after every cost, for every vehicle. This guide shows a simple way to work it out, whatever your country and currency.
Start with what the driver hands over
Write down the cash each vehicle brings in each day, and the fuel and expenses paid out of it. Cash collected minus fuel and expenses is the daily contribution. Handova records this in the driver's end-of-shift report and checks the sums.
Add the costs that come monthly or yearly
Insurance, licences, permits, loan or lease repayments, the driver's wage or commission, parking and station fees, tracker fees and repairs. These do not show up every day, so they are easy to forget. Spread each one over the days it covers: a yearly insurance of 1,200 is about 3.30 a day.
Work out profit per working day
Daily contribution minus the daily share of the fixed costs is your real profit per working day. Multiply by the days the vehicle actually worked in the month. Days off, breakdowns and rain all count.
Find your break-even
Divide the monthly fixed costs by the daily contribution. That is how many working days the vehicle needs before it makes anything. If it needs 24 days and works 22, it is losing money even though it brings in cash every day.
Compare vehicles and drivers
Put every vehicle side by side: profit per day, cost per kilometre, days worked, shortages. Older vehicles with high repair costs often turn out to be the ones holding the business back. Handova's Profit page shows this for every vehicle and driver.
Grow from the numbers
Once you know which routes, vehicles and drivers make the most, you can set fair targets, replace the vehicles that lose money and add new ones where they pay back fastest.
