Should You Become an Uber Driver in 2025? [Your Options]
Uber has long been the face of the rideshare app market; growing in the millions—and forecasted to continue. Hand-in-hand with this virality, however, has come controversy, with mixed experiences from its workers.
When looking to become a Driver for a rideshare app, Uber is many Drivers’ first thought. It’s estimated that Uber has captured 75% of the UK’s market share. However, this share was higher a few years ago, and there have never been so many alternatives on the market as there are now.
So, with that in mind, is Uber really the only choice?
Uber: Rising costs and controversy
Uber’s launch over 15 years ago was hugely impactful. By being a first-mover that was backed by billions in funding, it quickly became the price-setter. This meant that rideshare taxi prices were most often set by Uber because they were the largest firm. And, with billions in funding, they were able to not initially turn a profit. As a result, Uber quickly managed to corner the market - and its customers.
In 2024, it was estimated that Uber had 7.7 million Drivers around the world serving 161 million customers and around 100,000 Drivers in the UK. The number of Drivers has almost doubled since 2021 when the Supreme Court ruled on a change to the Uber model. The change recognised the Drivers as workers, giving them more rights to minimum wage and holiday pay.
While this may at first appear like good news, it highlights two things that may concern those looking to become an Uber Driver. Firstly, what was the status of pay and working conditions if ensuring minimum wage boosted Driver numbers? Secondly, will this large influx of Drivers further suppress fare prices and increase competition for jobs?
Since this shift, there have been calls to boycott Uber, leaving Drivers and customers alike on the hunt for alternatives. On the one hand, the app is accessible, on the other, Uber’s relationship with its workers has continually faced its challenges.
Pay and rising Costs
Uber Drivers are estimated to be earning anywhere between £11.95 and £19.91 per hour. However, it’s difficult to judge total earnings because it ultimately depends on where the Drivers are, local competition, dynamic pricing, and more.
This market share dominance may appear lucrative for some Drivers. However, times are changing, and competition has begun ramping up…
Uber's business model vs alternatives
Uber's platform pioneered the modern ridesharing business model. However, not all rideshare apps are created equal, and there is a growing deviation from Uber’s model.
Payment structure
The core earning structure is a base fare plus trip duration (traffic) and distance (miles). Then, a commission is applied (excluding tip).
The problem with this payment structure is that the base fare is legally allowed to operate below the council’s minimum meter fare, meaning there is no price floor. It is also subject to dynamic pricing, meaning Drivers can get paid less during quiet periods because Drivers are deemed more available.
Secondly, because Uber has 100,000 Drivers, it can be impersonal. And when payment is in-app, it’s easy to not leave a tip.
There are growing alternatives to this payment structure. For example, FreeNow uses a meter, meaning that rides abide by a price floor, but they’re also more consistent. Zippe Transport is another example of more consistent fare pricing due to their school contracts, meaning a lot of the fares are periodic and repetitive.
What earnings are based on
Some operators run on commission, some operate a set price per job, and providers, such as Veezu, which runs a blended model of commission and set price. Providers such as Veezu will have a cap in certain regions, providing some protections for Drivers.
Gamified rewards
Both Uber and Bolt have a reward-based model that gives monetary bonuses to “top Drivers” and loyal workers. The issue here is that this money has to come from somewhere, and it’s not unreasonable to point out that it is coming out of the pocket of other Drivers’ pay.
This can also put pressure on Drivers not to take sick days, to avoid losing their top-rated status. Taxis have traditionally had an egalitarian approach to pay, where all Drivers operate on a level playing field, earning similar amounts per mile.
Race to the bottom
Finally, it’s important to remember that customers of Uber typically have wavering loyalty - they are using the app because it was first to market, and as a consequence of a large-scale press cycle (featuring both negative and positive perspectives) the app has become well-known, worldwide.
This loyalty is increasingly at risk, however, as evidence shows that Uber prices have begun creeping up.
In contrast, some apps are focusing on quality of service and more reliable fare pricing. For example, Zippe Transport has a Driver-first approach, providing additional training to ensure higher standards of service. This is then used to serve the local community and rates reflect that.
The rise of local alternatives and specialised services
Local transport services are emerging as compelling alternatives. It’s important to remember that while Uber has some upsides, they can come at hidden costs. For example, flexibility can come at the cost of reliability, low fares can come at the price of fair pay, and high prices during peak hours come with low prices during quiet hours.
Regional success stories
Zippe Transport, operating in the Southwest of England, is showing that it’s possible to be a successful rideshare app while balancing fair rates and dignified rides for Drivers. The company provides specialised services like Home-2-School transport, offering Drivers consistent work through the local authorities. This provides a chance for Drivers to earn a steady income, something that could be difficult in urban-centric business models like Uber.
High-end clients
Companies like Wheely are focusing on higher-end clients, such as VIPs and corporate workers. While Drivers must buy and maintain their own expensive car (some other apps provide them), the per-mile fare price is very high. This business model is centred around big cities, but it has less competition and no race to the bottom.
Partnerships and contracts
Beyond the Free School Transport scheme, which operators such as Zippe Transport are approved by, operators are working with other types of contracts also. Some firms specialise in airport drop-offs and hotel transfers, as well as directly working with large workplaces. It’s not always easy to immediately find operators that have these from a job-hunting perspective, so one approach can be to put yourself in the customer’s shoes. Drivers can assess their local environment as passengers to see if operators appear in partnerships, and this can be a sign of reliable work.
Should you become an Uber driver?
Below are some questions to ask when deciding on whether or not Uber is right for you.
Are you living in a city?
Uber has an urban-centric business model, meaning that potential earnings greatly depend on the Driver’s region. Some mid-sized towns use Uber, while the app hasn’t fully taken off yet in others. Therefore, it’s best to take an Uber as a passenger in your local town, look to see how many Drivers there are, listen out for cancellations (a low acceptance rate is an indicator that there are part-time Uber Drivers working primarily for other operators), and of course, ask the Driver about the job during the journey.
Future opportunities
Going from large losses in its early days to creeping into profit, Uber unfortunately still faces numerous legal battles, fare prices are continuously being updated, and the status of the company’s own workers has also changed. Ultimately, nobody knows exactly the future of company in five years from now.
For those wanting to ensure they will be working with a company long-term with career progression opportunities, working with an alternative operators can be recommended.
Final word
Choosing to become an Uber Driver in 2025 isn’t a straightforward decision. Ultimately, all of its upsides come with a cost, and it is up to each Driver individually to assess. Fortunately, despite Uber’s dominant market share, more alternatives are coming through, which can only be a good thing for taxi Drivers.
