Uber UK business model change

• In December, the UK High Court ruled that all Private Hire Vehicle (PHV) Operators in London - such as Uber, Bolt, FreeNow, Addison Lee to name a few -  are required to contract directly with passengers, rather than operating as an ‘agent’ between driver and passenger, as has historically been the case. 
• This means that drivers and riders must no longer contract directly with each other when using the Uber app - and in line with this, the rider no longer directly pays the driver, but pays Uber, who separately pays the driver. 
• The whole Private Hire Vehicle industry in London needs to ensure that their business models are compliant with the High Court ruling - which can be read in full, here. 
• For Uber, since we communicated to you in December, here, we have been working to change our business model to comply with the ruling. We will be required by our regulator in London (Transport for London) to show we have made the necessary changes.
• This ruling means that Uber will no longer act as an ‘agent’ from 14th March 2022 at 23:59, and will be a provider - or merchant - of transport services, as we would be providing transportation services directly to riders on our app, the rider and driver terms that Uber has with these users are being updated. 
• These new Terms will be visible in the app on 14th March 2022 at 23:59, and will replace your existing Driver Terms. At that time, in order to continue to use the Uber app as a driver, you will need to review and agree to the new Terms. Your Uber Pro Terms will also be updated to reflect these changes.
• You can see below how the model will change after March 14th 2022 at 23:59

• Although the High Court’s ruling directly concerned London private hire regulations, we think it’s right to make the change for our whole United Kingdom operations. We consider that the law for the rest of the UK is so similar to London, that it applies in the same way. 
• Therefore, new driver terms will be sent to all UK drivers [in England, Wales, Scotland and Northern Ireland] to review.

• The way you interact with the app will remain largely the same and you will still have full control over if, when and where you earn on the Uber app.
• But you may notice a few changes in how fares are displayed in the app in line with the High Court ruling which means that drivers and riders must no longer contract with each other directly when using the Uber app. Instead, Uber will contract with the rider directly when they book a trip through Uber’s PHV Operator licence. 
• As Uber will be the provider - or merchant - of transportation services, we will charge the rider and separately pay you as the driver. This is different to what happened previously, where Uber took a service fee from the fare which the rider paid directly to you, the driver.  
• Under the new business model, the rider will now pay Uber directly instead of paying the driver, and because of this, a service fee is no longer suitable as a mechanism to provide payment to Uber for using our app. 
• This means that we will no longer be using a service fee to calculate your net - take home - earnings, and drivers will not see any reference to service fee on the offer card in future.
• Drivers will also no longer see a service fee or the rider fare listed on individual trip earnings receipts. Instead, you as the driver, will see your upfront earnings estimates on the offer card, with your actual earnings on individual trip receipts and weekly earnings statements. 
• Uber will now charge the rider directly and will separately pay the driver a trip payment and other earnings (including their worker benefits).
• It’s important to note that these changes do not affect the worker protections that we provide to drivers on the Uber app - all drivers will continue to receive Holiday Pay, a National Living Wage guarantee plus access to a pension scheme (the first of its kind in the gig economy).

• The High Court Judgment means to comply with the law for Private Hire Vehicles in London, we have to make changes to our business and the way we contract with riders.
• Because of these contract changes - which removes the direct link between the rider and driver - Uber will handle payments in a different way.
• As Uber will be the provider - or merchant -  of transportation services, we will charge the rider directly and separately pay you as the driver. 
• This is a change to the previous model, in which a rider requesting a trip on Uber would pay fares directly to you, the driver; and Uber then charged you a service fee for bringing you together with the rider.
• Under the new business model - because the rider will now pay Uber directly instead of paying the driver - a service fee is no longer suitable as a mechanism to provide payment to Uber for using our app. 
• This means that Uber will no longer be using a service fee to calculate net - take home - earnings, and the driver will not see any reference to service fee on the offer card in future. 
• Drivers will also no longer see a service fee or the rider fare listed on the individual trip earnings receipts. Instead, drivers will see upfront earnings estimates on the offer card, with your actual earnings on individual trip receipts and weekly earnings statements. 
• Uber will now charge the rider directly and separately pay the driver a trip payment and other earnings (including their worker benefits).

• You may notice a few changes in how fares are displayed in the app in line with the High Court ruling which requires that when taking a trip booked through Uber’s PHV Operator licence, riders will no longer contract directly with you, but instead will contract directly with Uber
• As this change means there will be no direct connection between rider and driver payments, a service fee will no longer be used to calculate payments. As a result, you will no longer see a service fee or rider fare listed anywhere on the driver app (the offer card, trip earnings receipts or weekly earnings statements). Instead you’ll see your actual earnings in trip earnings receipts and weekly earnings statements. For more information on why we no longer use a service fee, please see the relevant question in this blogpost. 
• Once Uber implements our new business model you may notice that the rates appear lower than today by 25% on your earnings screens in the app. This is because the rates drivers receive under the new model don’t include the service fee that Uber charges today.
• It is important to underline that your take home rates (the base, per mile and per minute rates)  stay the same as your current take-home rates once we move to the new business model. This is outlined in the example rates comparison table below.
• The surge and dynamic adjustments will still be applied to trips automatically as they are today; you will always see your upfront price on the offer card before you decide to accept the trip.

• The way you interact with the app will remain largely the same and you will still have full control over if, when and where you earn on the Uber app.
• Under the new business model - because the rider will now pay Uber directly instead of paying the driver - a service fee is no longer suitable as a mechanism to provide payment to Uber for using our app. 
• This means that Uber will no longer be using a service fee to calculate net - or take home - earnings, and as the driver you will not see any service fee listed on the offer card.
• Drivers will also no longer see a service fee or the rider fare listed on the individual trip earnings receipts. Instead, drivers will see upfront prices on the offer card, with your actual earnings on individual trip receipts and weekly earnings statements. 
• Upfront Pricing thresholds will be lowered too - in response to driver feedback -  meaning that you will benefit from more accurate pricing when changes occur due to new routes, necessary detours or traffic. See the relevant question in this FAQ for further information.

• Upfront pricing will still be used to calculate the fare for riders and payment for drivers, but in response to your feedback, we have changed how it is determined, meaning that you will benefit from more accurate pricing when changes occur due to unexpected new routes, required detours or traffic. 
• These changes will come into effect from 14th March 2022 at 23:59. 
• For any trip that takes a detour or makes unexpected changes to the upfront route, we have lowered the thresholds at which a trip payment would be based on actual time and distance. These updated UFP thresholds will apply if:
  • the change to the upfront route is 20% further (whilst being at least 0.5 miles further) AND 15% slower (whilst being at least  2 minutes slower)
    OR 
  • the trip is 20% slower (whilst being at least 10 minutes slower)
• Previously the thresholds were set at 40% for distance (plus 20% for additive time) and 40% for single time variations in trips, but in response to driver feedback we have halved these thresholds.
• Based on the current UFP thresholds, we expect these changes to mean that the number of trips which revert to actual time and distance will increase for drivers in future.  
• You can read more about our current Upfront Pricing here

• The change to our business model will be implemented on Monday 14th March at 23:59, and the new terms for riders and drivers will come into effect.
• New Terms were shared with all drivers on 24th February 2022 via an email named “ Upcoming changes to your driver terms”. These new Terms will also be visible in the app on 14th March 2022 at 23:59, and will replace your existing driver Terms, once accepted. 
• From 14th March 2022 at 23:59 in order to continue to use the Uber app as a driver, you will need to review and agree to your new Terms. Your Uber Pro Terms will also be updated to reflect these changes, but please be assured that the eligibility requirements and rewards remain the same.
• Whilst we will make every effort to ensure the majority of significant changes to our website and app are carried out within the first 24 hours of implementation, all changes will be completed by 23.59 on Monday 21st March 2022.

• You will continue to be engaged by Uber as a worker. 
• Instead of your new driver Terms being with Uber BV, these Terms will now be with:
  • Uber London Limited for drivers licensed by TfL in London
  • Uber Britannia Limited for drivers in Wales or England (excluding London)
  • Uber Scot Limited for drivers in Scotland
  • Uber NIR Limited for drivers in Northern Ireland 
• However, you will no longer contract with the rider directly (we will do that separately to comply with the High Court judgment) 
• You retain the flexibility to log onto the Uber app if, when and where you choose.  
• Regardless of where you drive on the Uber app in the UK - and where you are licenced - your access to the app will be granted by Uber London Limited.

• If drivers require tax information to assist with their self-assessments, this information can be requested separately but we always recommend that drivers seek professional advice. 
• Following driver feedback and to make things more convenient, we will amend our yearly tax statement so it runs from April 6th to April 5th instead of January to December. The first statements will be available after the end of the current tax year. 
• As a driver you are still required to pay VAT if your annual turnover - from all business activity or earnings from the Uber app - is over £85,000.
• For further information on how to register for VAT or set up a self-assessment account, please see our ‘How-To Guide”, as well as seeking independent advice.

• Drivers will remain self-employed for tax purposes, and you should continue to complete an annual tax return. Further information on tax returns and VAT registration can be found on Uber.com but we encourage all drivers to get independent advice based on their personal circumstances.
• In addition, following driver feedback and to make things more convenient, we will amend our yearly tax statement so it runs from April 6th to April 5th instead of January to December. The first statements will be available after the end of the current tax year - this will not affect the existing tax statement from Jan 2021-Dec 2021, which will remain on your driver portal.

• The Uber Pro Terms and Conditions have been updated to reflect that Uber Pro will now be provided to you by Uber London Limited. You do not need to accept the updated Uber Pro Terms and Conditions; they will become automatically effective from [14th March 2022 at 23:59]. 
• You can find further information on Uber Pro here.

• It’s important to note that these changes do not affect the worker protections that we provide to drivers on the Uber app - you will continue to receive Holiday Pay, a National Living Wage guarantee plus access to a pension scheme.
  • National Living Wage guarantee: You are still guaranteed to earn at least the National Living Wage for the engaged time you spend on the app; from the moment you accept a trip to the moment you safely drop a rider off at their destination.
  • Holiday pay: Uber will still continue to pay you holiday pay based on 12.07% of your earnings (minus costs), paid out on a weekly basis.
  • Pension: Uber will still continue to contribute to your pension as we do today, if you are eligible and have decided to remain opted into the scheme. We will keep you updated of any further changes.

• No, these changes do not impact your Partner Protection Scheme. 
• You will continue to be covered with our third party Allianz insurance as part of our Partner Protection Scheme, for events on or off trip including injury, sickness or having a baby. 
• You can find further information on our Partner Protection Insurance here.

• No, these changes do not affect payment of tips. 
• You will still continue to receive 100% of your tips from Riders.

No, the way these are charged and treated on the driver app will stay the same.

The fee amounts will remain the same but due to the changes to the way  Uber contracts with drivers and riders, the fees will now be paid from Uber to driver (rather than rider to driver which used to be the case).

• The fee amounts will remain the same but due to the changes to the way  Uber contracts with drivers and riders, the fees will now be paid from Uber to driver (rather than rider to driver which used to be the case).
• Cancellation fees will still be included in the individual trip receipt.

• The fee amounts will remain the same but due to the changes to the way  Uber contracts with drivers and riders, the fees will now be paid from Uber to driver (rather than rider to driver which used to be the case).
• Cleaning fees will still be paid in the same way as now, via misc. payment.

• Under the new business model going live in the UK on 14th March 2022 at 23:59, because the rider will now pay Uber directly, we will no longer be using a service fee to calculate earnings, and you will only see your net “take home” earnings on your offer card, individual trip receipts and weekly earnings statements - not the rider fare or service fee.
• Uber will now charge the rider separately and then pay you a trip payment and other earnings (including your worker benefits).
• UberACCESS and UberASSIST trips previously had a lower service fee of 15%, but as service fee is no longer used with our new business model, instead you will now earn 15% more on ACCESS and ASSIST than what you would earn on an UberX trip. However, for the rider, the fare will be the same as an UberX.
• To find out more on UberACCESS and UberASSIST, please visit this link

• All of the products on the Uber app today - UberX, XL, Lux, Exec, Comfort, UberACCESS, UberASSIST, and Uber Green (in London Zone 1) - will still be available in the same way after March 14th 2022 at 23:59. 
• The only change is the rider now pays Uber, and Uber pays you the driver separately - rather than the rider paying the driver directly as happens today. 

These changes do not affect Uber Eats.

• These changes only affect the United Kingdom, and are not applicable to Uber Ireland. 
• You can always contact the Driver phone line on 003531800938325 for more information about Uber Ireland.

• As stated in the email to drivers on 24th February 2022 the Clean Air Fee will no longer be applied on trips in London from 14th March 23:59. 
• This is because, after three years of the accumulation phase of the Clean Air Plan, we are now focussing on supporting drivers to spend the accumulated funds and switch to an Electric Vehicle. 
• More detail about the change can be found here.
• Eligible drivers can still claim EV assistance funds as before and for further information on switching to an EV should visit this page.
• If you are an EV driver, from 14th March at 23:59 until the end of 2022, you will receive 15% higher rates (compared to UberX) on all Uber Green trips. In addition, in Spring 2022 we will be expanding the area that Uber Green covers to the whole of London.