How Much Does an Uber Driver Make in the UK?
If you’re thinking about becoming an Uber driver then you’ve probably got lots of questions, and with the cost of everything rising at the moment, one of the most important questions to ask is how much does an Uber driver make in the UK?
But how do you become an Uber driver? What are the costs of being an Uber driver? Is being an Uber driver a flexible job?
Let’s take a look at all these questions and more so that you can decide for yourself whether being an Uber driver is something that could work for you.
[lwptoc]What is Uber?
Uber is a transportation app that connects drivers with travellers. It allows people to hail a ride and sends out a request for an Uber driver nearby. Once the driver accepts the fare, they will pick them up and take them to their chosen destination.
The Uber app will automatically work out the best route for the driver to take as well as calculating the fare.
Do Uber have employment contracts?
There was some controversy about the way Uber were treating their drivers. Uber insisted that their drivers were all self-employed which meant that they weren’t entitled to any of the benefits that employed members of staff would be. This includes things like holiday pay, maternity leave, paternity leave and sick pay.
A government review forced Uber to make some changes and in May 2018, Uber announced that they would be making changes. From June the same year, they announced that eligible drivers would be entitled to various benefits including insurance against sickness or injury, paternity & maternity pay, holiday pay and national minimum wage for the time that they are logged into the Uber app.
This was quite a groundbreaking review from the government, but they found that Uber drivers can’t be classed strictly speaking as self-employed for the following reasons:
- Drivers don’t have complete control over which fares they take. They can be penalised it they cancel or reject a fare.
- Drivers need to maintain a customer rating of at least 4.4 or they could be investigated or removed from the platform.
- Drivers can be fined if they choose to take a route other than the one shown on the app.
- Drivers can’t set their own fees.
- Vehicles have to be inspected and approved by Uber before they can be used.
- Drivers have to use the app to pick up fares, they can’t go looking for their own work.
How much does an Uber driver make in the UK?
In February 2021, the government ruled that Uber drivers are entitled to workers’ rights. This means that they have to be paid in line with the National Living Wage for people aged 23 and over. The average wage for an Uber driver is actually £15/hour, but it’s important to point out that drivers only get paid whilst they are transporting a passenger. They don’t get paid whilst they’re waiting for a fare.
How much do Uber drivers make in London?
Uber drivers do earn different amounts depending whereabouts they are in the UK.
Depending on how many hours they work, an Uber driver in London can expect to make anything between £250 up to £800 per week.
Bear in mind though that there are more expenses for London drivers, particularly with congestion charges for those working in Central London.
Is the Uber rate different around the country?
The Uber rate does differ around the country. London is (perhaps unsurprisingly) the most expensive, with Stoke and Leicester currently coming in at the cheapest rate in the UK.
How are Uber drivers paid?
Drivers are paid weekly directly into their bank account. There is also an option to be paid daily using Flex Pay. In order to qualify, drivers must have been active on the app for at least two weeks and have completed twenty five journeys.
How many hours do Uber drivers work a week?
As it’s technically a self-employed position, drivers can work as many or as few hours as they wish. There are even some Uber drivers who only log into the app during their commute to their regular place of work and get paid to take other people with them. Full-time Uber drivers may work 40+ hours.
Do Uber drivers get paid tips?
Uber drivers can be paid tips. Passengers can easily tip drivers through the app after each trip. Drivers keep 100% of their tips for themselves with no deducation taken by Uber.
Do Uber drivers get holiday pay?
Uber drivers do now get holiday pay. This is paid automatically each week on top of the driver’s earnings and is currently calculated at 12.07% of a driver’s earnings.
Drivers don’t need to put in holiday requests, they can just take time off as and when they need to which makes this a really flexible job.
How to earn more as an Uber driver
There are a few ways that drivers can boost their income:
- Schedule your work hours to fit in with surge pricing – this is when rates increase due to a large demand for taxis, it could be due to large events, inner city rush hour and other peak times or even poor weather.
- Reduce your expenses – switch to an electric vehicle to save money on fuel and to benefit from Uber Green (an initiative by Uber to be 100% in London by 2025).
- Go the extra mile for your customers – be courteous and polite and boost your rating on the Uber app.
- Work for other companies too. As well as Uber, you could also sign up to work for similar companies such as Bolt and OLA.
Is being a driver for Uber worth it?
As with most jobs, you get out of it what you’re prepared to put in. But the beauty of this work is that you can do as much or as little as you like, so if you know you need to bring in extra money one month, you can work additional hours.
However, there are lots of expenses and additional costs involved, so it’s important to weigh that up against the benefits.
How much does Uber take?
Uber automatically deduct their service fee before paying you. They take a cut of 25% of each total journey fee. So, if a journey came to a total cost of £10, Uber would deduct a fee of £2.50 and pay you the remaining £7.50.
How do I become an Uber driver?
If you’ve decided that this could be the job for you, then there are a few things you need to do in order to become an Uber driver.
- Head over to the Uber website and sign up. You will need to download the Uber app on your phone and register with a valid email address.
- Get a private hire licence from your local council. Note that you need to check that Uber is licensed with the council before you apply, as you’ll only be able to work in areas where Uber has a license to operate.
- Upload your paperwork. You will need to be at least 21 years of age and provide the following: A valid UK driver’s licence, Private Hire Insurance certificate, a bank statement for the account you wish to receive payments, a photograph for your driver profile.
- You will need to show that you have a vehicle that meets Uber’s standards.
- Complete an onboarding course to learn how to use the app, this is called the Edume Course.
- Book an appointment at an Uber Greenlight Hub where your Uber account will be activated.
What insurance do you need as an Uber driver?
You will need two different types of insurance.
- Private Hire Insurance
- Public Liability Insurance
What are the expenses of an Uber driver?
If you decide to go ahead and start work as an Uber driver, then you need to treat it as a business. You will be responsible for paying various fees yourself as well as declaring your income to HMRC each year and paying any tax due.
As a driver, you will have a few expenses to keep on top of.
Uber Service Fee
As mentioned earlier, Uber charge a 25% service fee for every journey you make. They deduct this automatically before making payment to you, so you don’t need to worry about making any payments, but you do need to factor it in when you’re working out your potential earnings.
Fuel
Fuel costs are one of the big considerations you need to make. Obviously the amount you spend on fuel will vary depending on the type of vehicle you drive and where you buy your fuel from. There are apps you can download to check out fuel prices near you, and you can save quite a lot of money by shopping around.
Maintenance
You will be responsible for maintaining your vehicle. This includes annual servicing, MOT and any other repairs your vehicle needs. It’s a good idea to put money aside each week towards maintenance so you’re not hit with a bill you can’t pay which leads to your vehicle being off the road leaving you unable to earn a living.
Insurance
Private Hire Insurance can be expensive so make sure you shop around and do your research before buying.
Taxes
All self-employed business owners in the UK need to declare their income each year and pay tax and National Insurance. It is possible to do this yourself, but many people choose to use an accountant to make sure this is done properly.
ULEZ and Congestion Charge
The ULEZ (Ultra Low Emission Zone) and Congestion Charge will only impact you if you’re operating in London, but they can make a huge dent in your profits, so make sure you know how much these are if you are planning on working in the capital.
So, there you have it, a full guide into what it’s like to work as an Uber driver. So, if you’ve been considering the role and wondering how much does an Uber driver make in the UK, then hopefully this has helped you to decide whether it’s worth it for you or not.
