Can You Make Money By Driving In The UK?

Many people dream of working for themselves. Being a private hire driver offers the possibility of this. Although not all drivers operate completely independently there is a certain freedom that comes with being on the road.

Even if you drive for a rideshare company, you still get to choose your hours and have a certain amount of independence. For those that love driving, this beats being behind any office desk or working in a factory.

But, is driving for hire as lucrative as it used to be? During the 2010’s there was a steady rise in the number of licensed private hire drivers. Although this has dropped somewhat recently. Now, there are around 99,162 private hire drivers in the UK. Note, these are licensed drivers, not vehicles.

What are the options for driving for reward, and what are the requirements?

Options for driving for a living

There is no doubt that you will face competition as a private driver. Rideshare companies have grown in popularity, and many are using this option for a side gig. This has led to insurance providers targeting these drivers specifically. For example, Zego’s Uber insurance is aimed at providing protection for drivers working in the rideshare sector.

But, there are several options available for jobs that involve driving. Some people want to drive trucks and enjoy distance travelling, while others want to get behind the wheel of a bus. For this article, the private hire sector will be looked at as this is where most people will find work.

Options for private hire driving include:

• Delivery driver
• Courier
• Limousine driver
• Taxi driver
• Rideshare

One of the benefits of private hire driving is that it lets people set up their own businesses. A sole driver may offer private courier or delivery services, and later expand if successful. Taxi drivers can work out of cab offices but they still work the hours they choose and have a lot of freedom.

Looking at the two most likely areas for driving for a living below you will see how to get involved, what the benefits are, and the requirements. A few potential pitfalls will be investigated also.

Rideshare and private hire driving jobs

The most popular choice for most is to become a private hire driver. You will likely need to use your own car for this. And you will be responsible for ferrying paying passengers to their chosen destination.

All private hire bookings must be made in advance. This is often done in person at a cab office, by telephone, or through a ride-hailing app. Any communication method is allowed with private hire but these drivers are unable to be hailed on the street. They also cannot use taxi ranks.

As far as ride-sharing goes, Uber has 76% of the market. The nearest competitor has a 20% share. Therefore, the likelihood is, you will end up working for either Uber or Bolt. In the UK, Uber reports that drivers in London could make up to £30 per hour.

Becoming a rideshare driver

To start as a rideshare driver you will need to apply to your chosen company and meet their criteria. Rideshare companies may ask you to take a test and supply certain documents. More on this further down the page. However, a valid private hire license will be required as well as a suitable vehicle.

Delivery driving jobs

Another way to make money by driving is to become a delivery driver. Uber also has a share of the food delivery market in the UK, and some drivers work for both areas of the company.

A benefit of becoming a delivery driver might be avoiding transporting passengers. Many people who work as drivers prefer not to carry passengers and prefer driving solo. Delivery drivers may also need different insurance requirements than taxi drivers.

Depending on how you are operating, you may need special courier insurance or a policy geared toward food delivery. If you plan on working for both areas of Uber then you will still need private hire insurance to carry passengers.

Becoming a delivery driver

These drivers may work for several companies on a gig basis. Commission for deliveries may be paid or you could choose to work full-time and receive an hourly wage. And platforms such as Deliveroo and Uber Eats, are always looking for drivers.

How to find driving jobs

It can take up to 6 months on average to find a new job in the UK. Fortunately, finding work as a driver is fairly simple though. All ride-hailing businesses have websites where drivers can apply for work.

Once you have created an account with Uber or another platform, you need to pass their application process. Then, you will be able to take bookings and passengers.

Alternatively, recruitment sites such as Indeed and Monster could be used to find driving jobs. If you wish to become a private hire taxi driver then you can approach local cab companies for work.

What requirements are there for work as a private hire driver?

There are some car essentials that every motorist needs. If private hire driving is your goal then you will need to meet certain criteria.

You will need a private hire licence. To obtain this you must be able to pass the application process.

To obtain a private hire driving licence you must have:

• A full UK driving licence
• The right to work in the UK
• Pass a DBS background check
• Proof of insurance

You may need to display sufficient knowledge of your local area too. Insurance is vital, and obtaining the proper cover is critical.

What types of insurance are needed when driving commercially?

You will need different types of insurance to your standard policy when you drive for reward. Driving for work requires specific insurance to protect passengers and goods. Usage-based insurance is becoming popular with private hire drivers as it rewards safe driving.

One of the ways to become a better driver is to use telematics-based insurance. This is often called usage-based or pay-as-you-drive. The idea being that careful drivers will see lower premiums.

Regardless of telematics or traditional insurance, you will need adequate cover:

• Private hire insurance
• Public liability insurance
• Employer’s liability insurance

Taxi and rideshare drivers need to have private hire insurance. Public liability insurance may come with your policy, or you might need to take this out also. If you decide to make a business you will need employer’s liability insurance too.

Are there any costs and pitfalls to driving for a living?

There are plenty of driving jobs available and lots of options. So, while it is clear that money can be made, there are also some other costs involved including insurance.

The pitfalls in driving for a living involve costs generally. Your car must be maintained so it keeps running. If your car breaks down it will impact your income. Private hire drivers may choose their own hours, but you won’t get paid when you stay home.

If fuel costs rise then this will affect your income too. However, smart choices about the hours you work, and which insurance provider you use, will help to mitigate some of the costs.

Summary

The easiest way to start driving is to choose private hire and either approach a taxi firm or sign up with a rideshare company. Both of these options offer guaranteed work, and you can supplement it with delivery driving too.

It is fair to say that driving for money is totally viable. However, smart decisions on insurance and careful driving will help you to keep costs down and benefit from bigger rewards.