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Report reveals Uber drivers make £11 per hour, £4 less than company's claim before driver costs
Uber drivers are taking home £11 an hour, £4 less than the company's estimates before driver costs but 80p more than the London Living Wage, according to new research.
A report from Oxford University, which for the first time used internal data supplied by Uber, found drivers are making £11 an hour after costs such as fuel and licencing, while working an average of 30 hours per week. The report comes as Uber faces scrutiny over its role in the capital's growing gig economy. The income puts average drivers just above the London Living Wage of £10.20 per hour.
The findings were welcomed by Uber, which has faced calls from unions to reveal how much drivers earn and claims some fail to hit the national minimum wage due to the unpredictable nature of bookings when logged into its app.
Uber's head of public policy Andrew Byrne told MPs last year drivers made up to £15 per hour before costs. He estimated drivers could earn around £9.50 per hour after. He said he did not know how many of its 50,000 riders were failing to make the minimum wage. Uber takes a 25pc cut of most rides.
Uber UK general manager Tom Elvidge said: "It’s encouraging that drivers make more than the London Living Wage and want to keep the freedom of being their own boss, but we know there’s more to do."
Ride-hailing apps and delivery firms including Uber, Deliveroo and Addison Lee have all been embroiled in debates over workers rights and the gig economy. A series of employment tribunals have seen workers and unions calling for employee rights such as holiday pay, while the app-based companies claim their working patterns give greater flexibility.
The Oxford University report said: "The median self-reported gross weekly income (including income streams other than Uber) among drivers is £460, which is considerably lower than the £596 median gross weekly pay among London workers. Notably, almost three-quarters of Uber drivers thus earn less on a weekly basis than the median London worker.
"Yet, about half state that their incomes increased after becoming an Uber driver, which reflects that many drivers transitioned out of blue collar or service jobs with presumably low levels of pay." The report also found that Uber drivers broadly report a higher than average level of job satisfaction, but they also report higher levels of stress on the job.
Following a defeat in the employment appeals tribunal that ruled drivers should be treated as workers, Uber has introduced new measures to give holiday pay to some drivers. It has also added some maternity and sickness protections and driver-friendly features, such as an in-app tipping service.
Unions have repeatedly called for worker status for Uber drivers. GMB union national officer Mick Rix said: "This so-called independent report, apparently co-authored by Uber’s own staff, waxes lyrical about flexibility. All too often in the gig economy flexibility is a one way street and provides an excuse for exploitative employers."
The report comes as MP Frank Field prepares to oversee a new review into the gig economy. He is set to call Uber before the inquiry over workers rights.
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