In the United Kingdom, Uber drivers are reportedly earning approximately £1 per mile after Uber’s commission. However, this article is not a definitive fact, as various operational expenses can significantly impact the actual net income drivers retain.
Operational Costs Per Mile:
Drivers incur several expenses that reduce their net earnings:
- Fuel: With fuel prices averaging around £1.46 per litre and a vehicle fuel efficiency of 50 miles per gallon (approximately 4.54 litres), the fuel cost is about £0.13 per mile.
- Maintenance and Repairs: Regular servicing, tyre replacements, and unexpected repairs can average around £0.10 per mile.
- Insurance: Private hire vehicle insurance premiums vary, but a reasonable estimate is £0.05 per mile.
- Depreciation: The reduction in the vehicle’s value over time might account for about £0.10 per mile.
Summing these estimates, the total operational cost is approximately £0.38 per mile.
Net Earnings Per Mile:
Subtracting the operational costs (£0.38) from the gross earnings per mile (£1) leaves drivers with an estimated net profit of £0.62 per mile. However, this is a simplified estimation. Actual figures can vary based on factors such as vehicle models, driving habits, regional fuel prices, and unforeseen expenses.
Considerations:
- Vehicle Choice: Opting for fuel-efficient or electric vehicles can reduce per-mile costs.
- Driving Patterns: Operating during peak hours or in high-demand areas can increase earnings.
- Maintenance: Regular upkeep can prevent costly repairs and extend vehicle lifespan.
Drivers should track their specific expenses and earnings to determine their actual per-mile net income.
Using the above calculation and going by this article Uber Drivers Average 1,000 Miles Per Week, Uber drivers earn around £620 per 1000 miles driven before tax and deductions.
