How much do Uber drivers make in London after car hire, charging and fees?

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If you start to do some research on how much you can earn as a private hire driver in London, you’ll likely come across a massive range of figures. Some of these are offputtingly low, while others are unbelievably high, making it difficult to figure out where you’ll stand. 

Below, we break down a few of the main things to be aware of, from the factors that will impact how much you can earn to recent legal changes that set a legal minimum rate. 

Basic figures

A recent study by the University of Oxford found that, before operating costs, Uber drivers earn an average of around £19 per hour. Based on a 40-hour work week, that adds up to £760 a week, or £39,520 a year. However, costs very rapidly make net earnings a lot less attractive. 

Costs

Common running costs include:

  • Uber’s commission (25%)
  • Vehicle hire from services like Westgate Hire
  • Fuel or charging
  • Congestion charge
  • TFL licensing and insurance

These costs all add up, and can quickly bring your end figure down. However, as we’ll see, they won’t bring them down too much, thanks to recent changes. 

Recent changes to the lower minimum

While in the past, it could become quite stressful trying to calculate whether you’d even break even after all the costs incurred, recent legal changes have had a positive impact on the financial protections afforded to Uber drivers. 

In 2021, a UK Supreme Court ruling found that Uber drivers should be classified as workers, rather than independent contractors. What this means in practice is that Uber drivers are now eligible for core workers’ rights, including the National Living Wage, pension contributions, and holiday pay. 

How this works in practice

Under the new system, drivers are entitled to at least the National Living Wage (£12.71 as of mid 2026) during the engaged time they are working. The engaged time includes the time from when you accept a trip, to the time when that trip is completed. 

It doesn’t include time waiting for a trip to be offered to you, which means that there is no requirement to accept trips immediately, allowing drivers to retain flexibility in terms of time management. 

Top-ups & reimbursement

The National Living Wage is also calculated including HMRC’s rate for running costs, set at 55p per mile for the first 10,000 miles driven, then 25p per mile after. It also includes 12.5% on top of the £12.71 per hour, to account for holiday pay. 

If your figure dips below this amount, then Uber will make sure they top you up. If you earn over that figure, you are entitled to keep the extra as your own earnings.

How much you actually earn as an Uber driver will be highly dependent on how you structure your driving hours, and how effectively you are able to keep running costs down. However, no matter how this works out, you will be entitled to at least the National Living Wage, providing some much-needed protections in the current economic climate.

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