How much do Uber drivers earn in London?

Considering becoming an Uber driver in London? Your earnings will vary based on your hours and schedule, but drivers in the capital typically earn more due to higher demand. In this guide, we’ll cover potential earnings, expenses, and tips to help you maximize your income as a London Uber driver.

Taking advantage of flexible working hours

In 2022, 8.8m riders in the UK used Uber to commute to work and 13.5 million riders used Uber to visit friends of family, showing how access to shared rides connects communities.

One of the biggest draws of driving for Uber is the flexibility it offers. You can choose when and where to work, making it an ideal job for those looking to balance it with other work or personal commitments. Whether you prefer to work during the day, at night, or only on weekends, Uber allows you to set your own schedule and log in and out whenever you please.

A typical hour earnings as an Uber driver in London

On average, Uber drivers in London earn between £15 to £22 per hour (after paying the Uber service fee of 25%), before expenses. This range represents a 27-63% increase on the National Living Wage and means that if you work 40 hours a week, you could potentially make between £600 and £880 per week. It's important to note that earnings can vary based on several factors, including the time of day, location, and demand.

Uber also pays all its UK drivers an additional 12.07% of their total earnings every two weeks to recognise their right to paid holidays.

The Uber driver’s hourly wage in London is higher than the National Living Wage, which is currently £11.44. The current NLW rate has been in place since April 2024 and is reviewed every April. This amounts to £457 for a 40-hour workweek, so it’s fair to say that a full-time Uber driver could earn considerably more than that. 

Uber pay structure

Uber's pay structure is dynamic and flexible and can vary from day to day

An Uber ride’s final price consists of:  

•  Base fare - The minimum rate for a ride, based only on distance and estimated time. This can differ for each Uber ride type.

•  Booking fee - A standard fee that covers Uber’s operational and administrative costs.

• Surge charge - For high demand in unusual traffic conditions (bad weather, busy area, special events, etc) the cost per ride will increase.

• Tolls - Highway tolls and airport fees are also the passenger’s responsibility to pay, such as Luton, Gatwick, Stansted and Heathrow drop-off charge.

•  Cancellation fee - If the ride is cancelled while you’re on your way to pick up the customer, you’ll receive a cancellation fee.

• Waiting fee - Passengers are required to pay an extra fee per minute if they’re not ready for pick-up at your arrival time. This fee begins to accrue two minutes after you arrive at the pickup point.

• Customer tips - In recognition of a pleasant experience, passengers can offer you tips at the end of the journey. Uber only takes a percentage of the fare itself, so drivers get to keep 100% of their tips.

Understanding costs in detail

Driving for Uber isn't without its costs. Here are some common expenses to consider:

•  Uber’s service fee: Uber collects 25% of every fare you accept and complete.

• Vehicle maintenance: The costs involved in regular servicing, replacement tyres, and other part replacements, and managing general wear and tear, can quickly add up when your vehicle is used heavily.

• Insurance: You'll need private hire insurance (also known as PHV insurance), which is a legal requirement for all Uber drivers in London, and is usually significantly more expensive than regular car insurance. This is because heavier use of your vehicle increases the risk of being involved in an accident. Here’s some advice on how to reduce your risks as an Uber driver to keep you and your passengers safer.

• Congestion charges and ULEZ: Driving in London often means dealing with congestion charges and the Ultra Low Emission Zone (ULEZ) fees, which can eat into your earnings. EVs (electric vehicles) are currently exempt from congestion charges, with EV drivers paying an annual fee of £10 to avoid the daily £15 charge. However, Transport for London has announced that this exemption will end on December 25, 2025, and EVs will also be liable for the daily £15 charge. A very Merry Christmas to you too TfL!

• Charging costs for EVs: If you're driving an EV, charging costs will be a factor. However, these are typically lower than fuel costs. Here, we offer advice on how to reduce your EV charging costs.

With Splend’s Flexi Own package, maintenance, servicing and insurance costs are all included in a single weekly fee, making it much more simple and cost-effective to keep your Uber vehicle on the road safely, and keep earning!

Taxes

Even though currently rideshare drivers in the UK are considered Uber workers (an Uber Eats delivery driver is still considered self-employed), HMRC can’t deduct your Income Tax and National Insurance directly from your salary, and you need to file a Self-Assessment every year. You can read more about this in our Self-Assessment Guide.

The deductions from your total earnings will make the difference between gross vs net income. There are two main taxes to consider as an Uber driver — Income Tax and National Insurance.

Did you know? You earn up to £12,570 in a tax year before you must pay Income Tax.

If your earnings exceed this amount, you will have to pay 20% tax on your profits. 

However, you still have to pay the National Insurance tax if you earn over £1,000 in a tax year, which enables you to claim some state-provided benefits. There are two types of National Insurance of specific relevance to Uber drivers: 

• Class 2 (for profits over £12,570/tax year) – you pay £179 in a year

• Class 4 (for profits between £12,570 and £50,270/tax year) – you pay 6% of your profits, and 2% on profits over £50,270/tax year.

Tips for maximising earnings

To make the most out of your Uber driving experience, consider these strategies:

• Drive during peak hours: Peak times, such as Friday and Saturday nights, or during rush hour, often come with higher demand and surge pricing, which can significantly boost your earnings.

• Use efficient routes: Familiarise yourself with London’s roads and traffic patterns to minimise time spent in traffic and maximise the number of trips you can complete per hour.

• Focus on high-demand areas: Popular areas, especially during events or on weekends, can provide an opportunity to secure more rides and achieve higher earnings. For instance, driving during peak times can increase your hourly rate by 20 to 30% - a significant boost to your overall income. A good idea is to keep a calendar of things such as major sporting events and concerts so you can be in the right place at the right time to capitalise on those occasions. Planning for such events maximises your time on the road, which in turn improves your profitability.

• Consider using your car for parcel and food delivery: Parcel delivery apps, such as Amazon Flex, and food delivery apps, such as Uber Eats, provide further options to increase your income. Learn how to become an Uber Eats driver in London.

Is Uber driving worth it?

With the potential to earn a decent income and the flexibility to set your own hours, Uber driving can be a viable job option for many. While there are expenses to consider, many drivers find that the benefits outweigh the costs, especially if you strategize to maximise your earnings by following some of the tips listed above.

Steps to becoming an Uber driver 

If you're keen to get going, here are the steps you'll need to take to make it happen:

1. Obtain a Private Hire License: You'll need a private hire driver's license (PHV) from Transport for London (TfL).

2. Meet vehicle requirements: Your car must meet Uber’s vehicle requirements, which include your vehicle being no more than 10 years old and passing an MOT check.

3. Complete a background check: Uber will conduct a background check on you as part of the application process.

4. Create an Uber account: Once your documents are approved, set up your Uber driver’s account and you’ll be ready to go.

To be an Uber driver in the UK you must also:

• Be at least 21 years old

• Have at least 3 years of driving experience

• Have a valid UK driver’s licence (EU/foreign licences must be converted before onboarding)

• Have an approved smartphone or tablet. iPhones and iPads running iOS 9.3 or later or single-sim devices running Android 6.0 and up with a minimum of 2 GB of RAM, an 8-core processor and a screen size of at least 4.7"

• Have an eligible car

• Have a Private Hire Driver Licence (PCO Licence)

Full details on how to become an Uber driver in London can be found here.

At Splend, we’re here to help you every step of the way 

Not only do we provide you with everything you need to start your own business, every Splend customer also has a dedicated Customer Specialist, a professional ridesharing coach whose job is to ensure you’re the most profitable Uber driver you can be. As well as guiding you through the process of becoming an Uber driver, they will also take care of your car, and regularly check in to see how you’re going and help you optimise and maximise your income as a driver. 

Key takeaways:

• Potential weekly Income: £600 to £880.

• Consider expenses: Vehicle maintenance, insurance, and London-specific charges.

• Maximise earnings: Focus on peak hours and high-demand areas. Consider becoming a food and/or parcel delivery driver as an additional revenue stream.

About Splend

At Splend, we believe in drivers. We know their vehicles need to work harder than most; that they drive more miles than most; that their insurance is hefty; their maintenance costs high and that they can face unreasonable finance rates – which is a heavy load to carry on their own.

That’s why at Splend, we exist to support rideshare drivers with a new model, that takes all those car ownership costs, and provides them for less, with lower purchase prices, better rates, lower servicing and insurance costs – all for one weekly repayment, all in one place.

Frequently Asked Questions

• How much do Uber drivers make per hour? On average, £15 to £22 per hour.

• How much do Uber drivers make in a weekend? Earnings can vary, but working peak times over the weekend can significantly boost your income.

• How much do Uber drivers make after expenses? After accounting for expenses, such as insurance, fuel, and maintenance, the take-home pay typically ranges between £10 and £17 per hour.

• Is it worth becoming an Uber driver? For those seeking flexible work and a decent income, Uber driving can be a good option, especially in a busy, highly populated city like London.