Taxi Insurance Guide
How Much Do Uber Drivers Make In The UK?
Uber’s growth, much like many ride-hailing apps, owes largely to the flexible working patterns it affords to both its customers and drivers.
Uber drivers have the advantage of deciding when and how they work. Whether it is a supplementary income source or a primary job, deciding how many hours to dedicate is entirely yours.
Yet, given such flexibility, what might you potentially earn as an Uber driver?
In the UK, Uber drivers reportedly pocket an average of £7.88 per ride. If we consider two rides per hour, that results in an hourly rate of £15.76. Therefore, driving for 30 hours a week could equate to earnings of around £472.
How much do Uber drivers typically make?
A full-time Uber driver in the UK could anticipate monthly earnings between £1,260 and £2840.
Let’s delve into the figures…
In 2021, the average cost of an Uber ride in the UK fluctuated between £9 and £12 (excluding tips), varying by location. Taking the average, we can estimate a national rate of about £10.50 per trip.
After Uber’s 25% cut, drivers are left with an approximate £7.88 per ride. As mentioned earlier, accounting for two rides per hour gives hourly earnings (after Uber’s fees) of £15.76.
Bear in mind, actual earnings can vary. Factors like vehicle type, driving hours, duration, and location significantly affect your take-home pay.
Operating a taxi service with your own vehicle brings operating costs such as fuel, maintenance fees, and vehicle taxes, which eat into your earnings.
Private Hire insurance is a necessity, different from regular motor insurance, as it covers you for commercial use of your car. This needs to be considered before you start driving with Uber.
What do London Uber drivers make?
London Uber drivers can make anywhere between £250 and £800 a week, contingent on the hours worked. If operating in central London, Uber drivers may have to consider congestion charges, potentially up to £15 a day.
Frequently driving in central congestion zones could lead to additional yearly costs of over £2,000!
Does Uber’s rate vary nationwide?
Uber’s rates can differ based on the city or region of operation.
Uber determines trip fares by estimating duration and distance, then applies specific rates to calculate the basic fare. These rates differ based on location.
Additional charges like tolls and airport parking fees might apply depending on your location.
How many hours do Uber drivers work weekly?
Part-time Uber drivers typically work around 20 hours weekly, while full-time drivers can work over 45 hours.
Uber has stated the average working hours of UK Uber drivers to be around 30, with about 16% working less than 10 hours weekly. Uber introduced a driver hours policy in 2018, requiring a 6-hour rest after 10 hours of driving to ensure safety.
Do Uber drivers receive tips?
Uber drivers receive and keep all their tips. Considering the average customer tips 10-20% of the ride cost, tips can significantly boost your earnings.
Uber customers can rate drivers and add a tip after each ride through the app.
Do Uber drivers receive holiday pay?
Uber pays its drivers a weekly holiday pay calculated at 12.07% of earnings.
Additionally, Uber offers a National Living Wage payment to ensure drivers earn the UK Government’s minimum wage.
As an Uber driver, you don’t need to request holidays. You can work or take time off as you like. Your holiday payment will be automatically added to your Uber account.
Does Uber cover petrol costs?
Uber doesn’t cover petrol costs. It’s something to consider if you’re thinking of becoming a driver.
If you’re driving extensively, consider an electric car. It’s environmentally friendly and cheaper to run, and you can benefit from EV-specific promotions on Uber. Another option is to use a fuel-efficient diesel car to cut down on fuel expenses.
How can I increase my earnings as an Uber driver?
Use faster and more efficient routes to maximise earnings, steering clear of congested areas where possible.
Not only does this benefit you and your customers, but it also lowers your emissions and fuel expenditure.
Here are some tips to earn more as an Uber driver:
Drive during peak times
When demand is high, prices increase, which Uber refers to as surge pricing. This could be during rush hours in city centres or near sports venues during major events. Choose your timings wisely and you could earn more.
Switch to an electric vehicle to save money
Switching to an electric vehicle can save money on fuel and emission charges. You can also earn more per hour through Uber Green and special EV promotions.
Consider working for multiple companies
While Uber is a significant player in the ride-sharing industry, other companies offer bonuses and promotions to new drivers. Look into companies like Ola and Bolt operating in your area.
Is driving for Uber a good job?
Despite the emergence of other ride-hailing services, being an Uber driver remains a popular job choice for people seeking flexible work. A recent survey found that 74% of gig workers are satisfied with their employment situation.
Recent changes mean that Uber drivers are now entitled to holiday pay and National Living Wage Pay, guaranteeing a minimum wage for your working hours. You can also boost your income through tips and Uber promotions.
Is it worthwhile driving for Uber?
Being an Uber driver can be worthwhile considering the flexibility to choose your own working hours and earning potential.
Potential drawbacks include fuel costs, vehicle maintenance costs, and working during evenings and weekends.
However, with the right balance and taking advantage of promotions like surge pricing and Uber Green, you can earn a decent income at your convenience.
Which city pays the most to Uber drivers?
Uber drivers tend to earn the most in London due to high ride demand, which translates to higher rates and earning potential.
But other cities like Manchester, Birmingham, and Bristol also provide good opportunities for Uber drivers, especially during busy times or large events.
How much do Uber Eats drivers make?
On average, Uber Eats drivers in the UK earn between £7 and £14 an hour. So, if you worked 30 hours weekly, you could earn from £210 to £420.
Your earnings can vary based on factors such as your driving location, time of day, and the demand for deliveries.
As an Uber Eats driver, your fee comprises three elements:
- Pick-up fee — Each time you collect from a new restaurant.
- Drop-off fee — For each separate order you deliver.
- Per-mile rate — For the total distance from pick-up to drop-off.
You can also boost your earnings through tips and Uber’s Boost function, which increases fares in specific areas during peak times.
However, as with any courier gig, costs like fuel, vehicle maintenance, and food delivery insurance need to be covered by you. It’s crucial to take these into account when calculating your earnings.
How much does Uber charge?
Uber takes a 25% cut from the total fee for each ride. So, if a ride costs £10, Uber takes £2.50, and you keep £7.50.
Uber’s cut is deducted before any earnings are deposited into your bank account.
How can I become an Uber driver?
Becoming an Uber driver involves these steps:
- Sign up online
- Obtain a private hire licence from your local council.
- Upload required documents.
- Choose a vehicle that meets Uber’s UK standards.
- Complete an online onboarding course.
- Activate your account and start driving.
What insurance do I need to drive for Uber?
You’ll need private hire insurance, which covers you for carrying passengers for payment and includes public liability cover in case of an incident.
Uber only accepts insurance policies from certain Instadoc-approved providers.
You can request a quote for private hire insurance quickly, and it’s fully integrated with the Uber platform, simplifying the process.
Get an Uber insurance quote today. It takes only a minute.