Minimum wage is rising but how does it affect the Uber drivers

Minimum wage is rising but how does it affect the Uber drivers

The minimum wage is rising, but how does it affect Uber drivers? In April 2025, it will increase to £12.21, so what does that mean for Uber drivers? In 2024, Uber introduced dynamic pricing, which means that Uber pricing can go up and down. When it’s quiet and the demand for an Uber is quite low, Uber charges the customer less and pays the drivers less. Now the minimum wage is rising and Uber driver’s pay is decreasing it means it’s harder for an Uber driver to earn more than minimum wage after their expenses going into 2025.

Typically, an Uber driver’s expenses work out at an average of 40%, so for a driver to hit around the £12 an hour mark, they have to earn approximately £20 an hour on average over the week to be able to hit the national minimum wage. Many drivers believe especially in the north of England that it is difficult on a full-time basis to average £20 an hour.

How can this be resolved? Many drivers believe that Uber has to either increase the amount they charge the customer or take less commission from their drivers. Rising costs of expenses are making it more difficult to earn a decent income from Uber in 2024 and hopefully, things may change for the positive going forward in 2025.