Financial Analysis of an Indian Auto Rickshaw Driver.

Hello Friends ,

When was the last time you travelled in an auto rickshaw? Have you ever wondered how much an average rickshaw driver earns ?

I am an Mba finance aspirant. After Mba our job is to Analyse company finance etc. So i thought why not lets start now. Generally auto drivers don't talk much about their income nor do we ever ask. But one day when i was heading to home from workplace i started asking him of the same.

Q. How much you drive a day ?

A. He told me that he works for 12 hours in a day and is married having 2 children.

Q. How much you get in fares a day ?

A. I get Rs 500 per day as revenue from fares.(Assuming he earns Rs 11 for every 15 mins drive.That makes it 500 for 12 hours.So i agree he is telling true figures.)

Q. What are your various expenditures ?

A. He said the vehicle wasn't his and has to pay daily rent to a person which is Rs.150. Now more Rs.100 goes into LPG a day.

Q. Any other Expenditure ?

A. He spends Rs.25 on daily Chai(Tea) and paan.

Q. What happens if the vehicle gets some damage in incidents/accident ?

A. Then i will have to pay it.The owner of vehicle wont pay for the same.

Q. Do you like the Job?

A. No, But i have no other good option. I work for 12 hours but get next to nothing.

Conclusion :-

The driver has revenue of Rs.500 a day but spends Rs.275 which leads to daily earning of Rs.225.Thus the driver earns Rs.6750 a month. The problem for him is not about current earning but no scope for increments unlike other jobs. Increment generally acts as a motive to perform better but for him thats not the case. So usually we see drivers having careless attitudes. May be they are not entirely to be blamed. Analysis Complete.