Thinking of becoming an Uber driver? Wondering how much does Uber cost to become a driver?
As with all new Money Earning Ideas, it is best to understand all the costs involved in the venture BEFORE you begin the journey…I always hate finding out the costs involved in something after I have signed up. by that time the horse has well and truly bolted, you have invested money and you probably need to continue.
Driving for Uber can be a great way to earn an additional income for yourself, the hours are flexible and the pay is good, so if you have your own suitable car you can get signed up and on the road within a few weeks.
So in this post, we will ask the question “how much does Uber cost to become a driver?” to you give an idea on the costs involved before your pursue this Money Earning Idea, either on a part-time or full-time basis.
I hoped in an Uber for a ride on Saturday to speak to a driver about his costs involved, he informed me that his weekly costs were as follows:
The driver informed that he worked on average 10 hours a day, so his petrol costs were probably a fair amount to pay whilst driving through London, but as with most UK Uber drivers, he was driving a Toyota Prius. Not sure what a Toyota Prius is? It is a hybrid car that runs on petrol and electric to save on costs, you can read more about the vehicle here.
You do not have to hire a car from Uber, this will depend on your starting capital and what your budget is, if you do have your own car that is suitable and is approved by Uber you can then use your own vehicle instead. For your car to be accepted by Uber it must be in working order and under 5 years of age, full details of the vehicles accepted by Uber can be found here.
Here in the UK, you will also then need to confirm with you local council that your car is indeed road worthy so budget for a road test which will cost approx. £240.00
In the UK, to begin your Uber driving journey, you will need to apply for a private hire licence. Costs for this type of licence vary depending on where you live but on average you should expect to pay approx £100.00
If you are based in London, you can apply for a private licence here.
This video on YouTube runs through applying for a licence in London:
How to apply for a PCO licence to become an Uber driver
Uber do not cover you for your driving, even if you are driving one of their vehicles through their car hire programme, you will need to have you own driver insurance in place. Uber will cover you in an event of an accident, BUT, they will only cover you if your own insurance company does not help out.
Your normal insurance will NOT cover you whilst driving for Uber, you must have private hire vehicle insurance in place to be able to drive for Uber.
Reading across the internet, private hire vehicle insurance is a lot more expensive than standard car insurance, for example, if you are currently paying approx £ 200 for standard car insurance, you should expect to pay anything between £1800 upwards, I have read some instances where drivers are being quoted £5000!
On average, it appears that drivers looking to have private hire vehicle insurance are paying approx £2000 per year.
The website, Go Compare, have a really useful search engine for finding the cheapest private hire vehicle insurance, you can take a look here.
YOU NEED A PHONE
You will need to have a smartphone to become a driver for Uber, you will need to install the drivers app and you will also need to use GPS Sat Nav / Google maps to make sure that you get to your destination as quickly as possible, the app and the sat nav will use up data so you will either need to have your own mobile phone contract in place or you can hire a phone from Uber at a set rate.
SIGN UP COSTS
There are zero sign up costs to sign up to become an Uber driver, you simply fill in the application forms, await for a reply, they will then run a background check on you (criminal history etc.) and then after a few more weeks, and once you have your insurance in place and a car (if not on hire) has been checked over by Uber you can get driving!
If you look about on the internet you can obtain sign-upup referral bonus (Google Uber Sign Up Bonus)
WHAT DO UBER CHARGE YOU AS A DRIVER?
Ok, so here is the crunch question…what do you Uber charge you/take out of your profits?
Uber takes 20% of the total fare from the driver for older drivers. Newer drivers get 25% taken. That percentage will get deducted from every fare that you charge a rider, so keep that in mind. You also need to keep in mind about taxes that you need to pay – you are classed as self-employed – and wear and tear on your vehicle, these costs all add up so you need to put a lot of hard work in with a lot of long hours to turn over a good side income when working for Uber.
Interested in becoming an Uber driver? We have a whole section dedicated to earning money from Uber here.