Regular readers of the Insurance Business forum
will know all about how controversial the issue of Uber and insurance is, with Sadiq Khan, the Mayor of London, recently defending the government’s tougher new insurance rules for private hire drivers (see article
However, there is no denying that Uber is big business in the UK – with The Telegraph
revealing the taxi technology’s drivers billed more than £100 million in UK fares last year, helping its parent company to double its profits.
According to the report, Uber London recorded a pre-tax profit of £1.83 million – up 105% compared to the previous year, thanks to revenue almost doubling. Accounts filed at Companies House showed sales of £23.3 million in the year to December 2015 – up from £11.34 million. This reflects only Uber’s share of fares for trips booked via its app – and while the exact revenue split is not known, it is believed Uber gives approximately 80% of any fare to a driver meaning its driver network did something in the region of £115 million of business in the UK over the year. According to The Telegraph
, the final figure is actually likely to be higher than that because of the complicated nature of Uber’s accounts.
The business is enjoying growth at a rapid rate – it now has £5.6 million on its balance sheet and employed 105 people as of the end of 2015, at its head office. Its average salary was £68,000.
In addition, it is recorded that Uber set aside £615,614 in bonuses – the equivalent of £6,000 per staff member.
It has been suggested, however, that drivers earn significantly less with the GMB trade union estimating drivers earn as little as £5.68 an hour in London – well below minimum wage – after costs and commission.
Where do you stand on the great Uber debate? Leave a comment below with your thoughts.
London Mayor responds to Uber on insurance feud
Uber loses legal fight over Transport for London insurance rules