A new comparison of popular private hire vehicles in the UK has revealed the true running costs for drivers covering 50,000 miles per year — and it raises serious concerns about how sustainable Uber’s £1 per mile fare structure really is.
With drivers footing the bill for fuel, servicing, insurance, tyres, tax, and depreciation, many are left with shockingly slim margins, especially when using executive or larger vehicles often requested on the platform.
🔍 The Vehicles Tested
The analysis looked at eight common vehicles used for private hire and Uber work, assuming each is around three years old, owned outright (no finance), and used intensively at around 50,000 miles per year — a realistic benchmark for full-time drivers.
The vehicles compared include:
- MG5 EV
- Tesla Model 3 Long Range
- Toyota Corolla Estate Hybrid
- Kia Niro Hybrid
- Skoda Octavia 2.0 Diesel
- Mercedes E-Class (2.0 Diesel)
- Ford Tourneo Custom (9-seater)
- Mercedes V-Class
📊 Cost per Mile Results (Sorted Lowest to Highest)
| Vehicle | Fuel Type | Estimated Cost per Mile |
|---|---|---|
| MG5 EV | Electric | £0.21 |
| Tesla Model 3 Long Range | Electric | £0.26 |
| Kia Niro Hybrid | Hybrid | £0.28 |
| Toyota Corolla Estate Hybrid | Hybrid | £0.29 |
| Skoda Octavia 2.0 TDI | Diesel | £0.31 |
| Ford Tourneo Custom (9-seater) | Diesel | £0.34 |
| Mercedes E-Class (2.0 Diesel) | Diesel | £0.38 |
| Mercedes V-Class | Diesel | £0.50 |
The MG5 EV came out as the most cost-effective vehicle at just £0.21 per mile, thanks to its low electricity costs and cheap servicing. Meanwhile, the Mercedes V-Class — popular for executive and group bookings — topped the chart at a staggering £0.50 per mile.
Even workhorse diesels like the Skoda Octavia or Ford Tourneo hover around the £0.31–£0.34 per mile range, leaving drivers with limited take-home income once expenses are deducted.
💷 Uber’s £1 per Mile: Enough?
With Uber currently paying just £1 per mile to drivers, the figures expose a harsh truth: for every mile driven, many drivers are spending a third to half of that just to cover costs.
That means:
- A driver using a Mercedes E-Class is making just £0.62 per mile gross
- Someone in a Tesla Model 3 nets roughly £0.74 per mile
- And a V-Class driver might be making as little as £0.50 per mile before tax
When factoring in Uber’s service fees, waiting time, unpaid return mileage, insurance premiums, and tax deductions, some drivers may be operating at a near-loss — especially those in premium or larger vehicles.
⚠️ “It Doesn’t Add Up” — Drivers Speak Out
One driver operating a Mercedes V-Class said:
“I charge more for private bookings, but on Uber it just doesn’t add up. £25 for an airport run sounds good — until you realise it cost £12 to get there, £3 to park, and you’re driving back empty.”
Another driver using a hybrid Toyota added:
“Hybrids are better on fuel but Uber rates haven’t gone up in years. We’re expected to maintain high standards, clean cars, and luxury service — all on basic pay per mile.”
🛣️ What Needs to Change?
Industry experts are calling for:
- A higher per-mile rate for drivers, especially those in UberXL or Comfort tiers
- More electric vehicle incentives, such as charging support or maintenance discounts
- Greater transparency from platforms around true earning potential
As the private hire industry continues to evolve, the gap between costs and income is becoming too large for many to ignore — especially in an era of rising fuel prices, insurance hikes, and increasing vehicle wear from high-mileage use.
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