The Real Cost of Becoming an Uber Driver in London

Are you planning on becoming an Uber driver in London and trying to figure out the most affordable way to get started?

We talk to prospective drivers every week, and almost everyone asks: 'What is the cheapest way to do this?'

It's a smart question. But here's what we've learned from supporting PCO drivers since 2016: the option with the lowest day-one cost often ends up costing you more by month six through surprise repairs, higher running costs, or limited access to better-paying ride categories.

This guide shows you the real total costs for every option - buying used outright, traditional rental, traditional car finance, and Splend's rent-to-buy model.

Not just the initial purchase price or weekly fees, but everything including the hidden costs most guides ignore.

Reading time: 6 minutes

What It Actually Costs to Become an Uber Driver

When comparing your options, look at three cost categories:

1. Startup costs: Initial payment, licensing, insurance setup, first month expenses

2. Running costs: Fuel/charging, insurance, maintenance, repairs, vehicle payments

3. Hidden costs: Lost income during repairs, limited earning categories, time managing issues

Most guides only show you the start-up costs. But numbers two and three will often determine whether you're making money (or not).

Option 1: Buying a Used Car - What You'll Pay

Upfront costs:

• A used Toyota Prius on AutoTrader with over 80,000 miles can cost upwards of £8,000

• PHV vehicle licence: £252

• First month insurance: £300-400

• Minor repairs for PHV inspection: £200-500

• Estimated startup: £8,852

Monthly running costs:

• Fuel: £400-480

• Insurance: £250-350

• Maintenance: £80-150

• MOT & admin: £40-60

• Total monthly: £770-£1,040

6-Month Total: £8,670-£13,190

This works if:

• You have £7,000-£8,000 cash available

• You're handy with cars or have cheap mechanic access

• You're testing PCO work for 3-6 months

• You're comfortable with financial uncertainty

This gets expensive when:

• Something major breaks (£800-£1,200 repairs)

• You need 3-5 days for repairs (lost income: £400-600)

• Your insurance increases after claims

What drivers tell us: "I bought a £3,500 Prius thinking I'd save money. Three months in, the hybrid battery died causing a £1,200 repair. I was off the road for a week and couldn't afford the fix right away."

Key consideration: PHV insurance for new drivers costs £250-350/month much higher than standard car insurance. Learn more about why PCO insurance is so expensive.

Option 2: Traditional Car Finance (HP or PCP)

What You'll Pay

Upfront costs:

• A brand new EV Volkswagen ID.7 deposit is: £4,607.56

• Monthly payment: £632.80

• Insurance setup: £300-400

• Admin fees: £100-200

• Total startup: £5,632-£5,840

Monthly costs:

• Monthly finance payment: £632.80

• Charging: £400

• Insurance: £350-£450

• Total monthly: £1,382-£1,482

6-Month Total: £7,000~

This works if:

• You have stable income for 4-5 years

• You have strong credit rating (required for approval)

• You're committed to PCO long-term

• You can afford surprise maintenance

Watch out for balloon payments: Most deals include £4,000-£6,000 final payment. If you can't pay it, you either refinance (more interest), return the car (lose equity), or trade in (often for less than owed).

Option 3: Splend All-inclusive Flexi Own Model

Our all-inclusive subscription model covering everything in one weekly payment using our Toyota bZ4X Motion as an example.

What You'll Pay

Upfront costs:

• Setup fee: £499

• First weekly payment: £239

• Total startup: £738

Weekly/Monthly costs:

• Flexi Own: £239/week = £1035/month

What's included: Vehicle, PHV insurance, all servicing, tyre replacements, MOT, 24/7 roadside assistance, courtesy vehicle during repairs, PHV vehicle licence.

Additional costs: Charging £120-180/month (vs £400-480 fuel

Total monthly: £1,155-£1,205

Flexi-Own 6-Month Total:

Flexi Own: £6,930-£7,230

Why Splend is the Cheaper Alternative

Traditional finance (£632/month) gives you vehicle and basic maintenance (potentially). You pay separately for insurance (£250-350), tyres (£15-25), MOT/licensing (£40-60), roadside assistance (£10-15) then your PHV licence (£16)

You're actually paying: £1,098/month total—similar to Splend but without courtesy cars, admin coordination, or multi-category access.

Compare our Flexi Own vs traditional finance deals →

The Multi-Category Advantage

Unlike some vehicles available from traditional finance retailers all Splend EVs qualify for UberX, Uber Green, and Uber Comfort.

Typical weekly earnings (40 hours):

• Petrol car (UberX only): £640 gross

• Splend EV (multi-category): £750-780 gross

Difference: £110-140 more per week

This isn't guaranteed—it depends on your area, hours, and local demand. But most London drivers report earning £300-400 more monthly with multi-category access.

Learn about do's and don't of charging →

How Splend Makes Sense

Works best if:

• You're driving 25-40+ hours weekly

• You want predictable weekly costs (no surprise bills)

• You value the service provided

• You want multi-category access from day one

Key insight

Splend costs less monthly than traditional finance (£1,155-£1,215 vs £1,383-£1,483) while including everything.

Over 6 months, you save £6,870-£7,170 compared to finance and £6,982-£7,482 compared to buying used.

Hidden Costs Most Guides Don't Mention

These apply to buying used and traditional finance—but not to Splend.

1. Lost Income During Repairs

Used cars (6+ years old): 2-4 incidents yearly needing 2-5 days each Lost income: 3 days × £150/day = £450 per incident (£450-900 annually) With Splend: £0 lost (replacement vehicle provided at the earliest opportunity)

2. Time Cost

Managing your own vehicle requires 40+ hours annually:

• Finding mechanics for repairs

• Waiting at garage during servicing

• Sourcing independent and more expensive insurance

• Dealing with insurance claims

• Coordinating MOT and licensing

• Shopping for tyres and parts

Time cost: £300-450 in opportunity cost With Splend: We handle everything

3. Category Limitation Cost

Most used petrol cars only qualify for UberX—missing Green and Comfort premiums.

Realistic impact: £60-100 less weekly = £3,120-5,200 annually

This is often the biggest hidden cost and why many drivers who start with used cars switch to EVs within 6-12 months.

Should I buy or finance a car for Uber?

Neither is cheaper than Splend over 6-12 months. Buying used requires £8,000-£9,000 upfront and costs £14,650+ for 6 months.

Finance requires strong credit history and is often rejected and costs £14,538+ for 6 months.

Splend costs £7,668 for 6 months with no credit check required and includes everything.

How much money do I need to start with Splend?

Just £738 (£499 setup + £239 first week) for a Toyota bZ4X Motion. Compare to £5,740 for finance. Plus you need operating buffer: Splend requires noting to start safely vs for buying or £8,000-£9,000 for finance.

Can I afford this with bad credit?

Yes, with Splend. Traditional finance requires strong credit checks. Splend's Flexi Own doesn't require credit checks-eligibility is based on your ability to earn. Learn about everything you need to know here for flexible electric PCO vehicle ownership →

What's the best car to start with as a new Uber driver?

An electric vehicle that qualifies for multiple categories. Splend's Toyota bZ4X (£239/week) qualifies for UberX, Green, and Comfort, costs 60-70% less to run than petrol, and has 317-mile range. Compare all available EVs for PCO work →