Driver Payroll Processing - Hisaab
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Different Revenue Models
Everest utilises online cab service aggregators such as Uber and Ola for its car operations,
with approximately 85% of its presence being on Uber's platform. Under the agreement with
Uber, Everest incurs a charge of 30% of the revenue generated. The remaining revenue is
distributed between Everest and the drivers through various models, primarily the Leasing
Model, where drivers pay a daily rental fee, the Revenue Share Model, where revenue is
divided between Everest and the driver (40:60 (where 40% is for Everest and 60% for the
drivers) and 45:55 (45% is for Everest and 55% for the drivers)) and Electric Vehicles (EVs)
(38:62 revenue model(38% is for driver) and 45:55(45% is for driver) revenue model
based on the performance of the driver.Additionally, Everest is exploring the integration of
1.Employee Transport Service (ETS)
- Cars used by corporate customers for their employee mobility.
- Additionally the drivers can run under Uber/ Ola
2.Intercity
- Designated for commuting between cities.
- Driver is paid 700 per day.
3. Drive-to-Own
- Driver will own the car after 2 years of service.
- Higher Security Deposit (50k)
- For these 2 years, he can drive under LEASING/REV-SHARE
4. Refrigerated Vehicles
- Driver(18000 fixed per month) and Attendant (13000 fixed per month)
Why there was a transition from Rev-Share Model to Leasing Model
Before the COVID-19 pandemic, most of our cars operated under a revenue-sharing (Rev-
share) model. In this arrangement, the revenue generated depended directly on the distance
the driver covered; the more kilometres driven, the higher the revenue. However, this model
had significant drawbacks. If a driver was not working—whether due to taking leave, being
physically unwell, or for any other reason—both our company and the driver would incur
losses because the car would remain idle and unproductive.
Recognizing the inefficiencies of the Rev-share model, especially during periods when
drivers were not actively driving, we saw a compelling need to transition our drivers to a
leasing model. Under the leasing model, drivers would lease the vehicles for a fixed daily
rate. This shift offered several advantages. For the company, it guaranteed a consistent daily
revenue stream, regardless of the distance driven or the driver's working hours. For the
drivers, it presented the opportunity to potentially increase their earnings, particularly if they
were able to extend their working hours or drive more frequently.
Overall, the leasing model provided a more stable and predictable financial arrangement for
both parties. It minimised the risks associated with idle vehicles and ensured that our assets
were continually generating income, thereby creating a win-win situation for both the
company and the drivers.
About Hisaab
Financial transactions, referred to as "Hisaab," including calculation and collection, are done
on a weekly basis. Drivers have the option to settle their dues either by visiting designated
hub centres or through online payment methods.
The components of the Hisaab mainly include -
1. Weekly rental amount / share of revenue
2. Outstanding balances from last week
3. Vehicle insurance Cover for the week
4. Driver incentives based on performance
5. Penalty incurred by driver
6. Adjustments for half-day shift
7. RTO(Regional Transport Office) fines
8. Repair/ Maintenance adjustments
9. Kuber (Daily deduction for a week and Paid after)
Everest has developed a dedicated portal, named Hawkeye, to oversee and manage
Hisaab. This platform enables the tracking of driver performance throughout the week and
facilitates the identification of drivers with outstanding balances, referred to as Bad-debt
drivers, who have failed to settle their dues from the previous week's Hisaab.
How has the Hisaab system evolved over the years?
Evolution of Hisaab has been pivotal as it ensures transparency and accountability between
the drivers and us. It also creates a sense of responsibility for us towards our drivers. In
addition to this, we can track down the payment status on a weekly basis.
For rev-share,
The broad components are -
1. Adjustments (Last week adjustments and pending bonuses if not paid)
Earlier the adjustments were settled over whatsapp group.
RM/DM/SDM would raise the issue, the hisaab team would take individual issues
and resolve them.
At times, there would be double approvals , drivers would get double the amount.
Now, in the Hawkeye platform-
ABM/BM can raise the request by filling a form. If that gets approved by DM , then
only then the driver is eligible for adjustment.
2. Penalty based on performance
3. Amount Paid
4. Uber Data
Uber provides us data on a daily basis of 4 different sheets
1. Payment Driver (Cash collected, Tip, Toll etc)
2. Trip Activity ( total kms, total trips etc)
3. Driver Quality (Acceptance Rates, Cancellation rates, Ratings etc)
4. Driver Activity ( Hours online, trip hours etc.
5. RTO fines
We had a vendor named ………. who used to supply us vendor files every thursday.
The team would manually enter the details in g-sheets (Time consuming process).
Later on,
We registered 1 SIM Card with 250 vehicles and received all the updates for the
vehicles , entered the details over the portal.
6. Outstanding Amount
For Leasing ……..
For EV ……..
Initiatives Taken over the years in Payroll
Lifetime Initiative
Top 3 performer of the month would get 3% of the additional amount of what he earns for
lifetime.
Royal Rewards(??)
If the driver completes 3 months, he would get 3500
If the driver completes 6 months, he would get 7000
If the driver completes 12 months, he would get 10000
Joining Bonuses on Performance
If the driver has acceptance rate > 65% and cancellation rate < 35% ,
1. Security Deposit Return : amount was refunded in 3 installments
Pros:
Cons:
2. SD kept with us, we are paying 300 per month for 3 months after he joins
Pros:
Cons:
Kuber Initiative
In this scheme,
Driver pays : A daily nominal amount of 35 for 90 days,
What he gets back : 1.5X amount for 72 days and 1X amount for rest 18 days.
