We don’t know if our drivers get minimum wage, admit Uber chiefs

UBER does not know how much its drivers earn as estimates suggest some take home less than the minimum wage, MPs were told yesterday.

An executive admitted that although the taxi firm pays drivers an average of £15 an hour after its fees are deducted, this does not take costs into account.

Andrew Byrne, head of public policy, conceded that the payment does not cover petrol, licensing, insurance, buying a vehicle or wear and tear.

Unions later warned that the US-based company’s 50,000 self-employed drivers could be earning less than the national minimum wage of £7.50 an hour once these costs were taken into account.

MPs on the Commons business select committee, who are looking into the so-called gig economy, heard from one who took home just £6 an hour.

During the hearing, Mr Byrne warned that fares would rise if their drivers were reclassified as employees as it would add ‘tens of millions’ to Uber’s costs.

The taxi firm is appealing against a landmark ruling last year which granted employee status to two drivers.

It also has until Friday to lodge an appeal after being stripped of its licence in the capital last month by Transport for London.

Uber was accused of being ‘belligerent and aggressive’ in response to this. Mr Byrne said: ‘The business absolutely accepts it had the wrong attitude and needs to change.

‘Hopefully we can see a path forward now with Transport for London where we can address their concerns and continue to operate.’

Uber was also branded ‘hypocritical’ for claiming TfL could put 40,000 taxi drivers out of business while the cab firm prepares to replace its own drivers with robots in the future.

After MPs expressed concern that some Uber drivers were working excessively long hours, Mr Byrne conceded that a quarter did more than 40 hours a week. But he said the average was 30 hours.

The Uber chief admitted there was no way to check if someone had completed a ten-hour shift elsewhere before working for the firm.

Mick Rix, GMB National Officer, said: ‘ Uber needs to play by the rules.’