EV vs PHEV: which is best for you as an Uber driver in London?

November 28, 2024

As London’s private hire vehicle (PHV) market continues its transition towards eco-friendly solutions, choosing the right car has become more complex. For Uber drivers, the decision often comes down to two main options: fully electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). All EVs and selected PHEVs comply with Transport for London (TfL)’s strict emissions standards and offer financial incentives, but each comes with distinct benefits and challenges.

Here, we evaluate EVs and plug-in hybrid options using examples popular among Public Carriage Office (PCO)-licensed drivers in 2024. We’ll explore key considerations such as cost, range, convenience and Ayan Capital's value-driven financing model.

The case for EVs

Electric vehicles have emerged as the gold standard for Uber drivers aiming to minimise environmental impact while reducing operating costs. Fully electric models such as the Tesla Model 3 and Volkswagen ID.5 have become increasingly popular among PCO drivers due to their superior range, smooth driving experience and access to various grants.

Why choose an EV:

  1. Low operating costs: EVs are significantly cheaper to run than traditional hybrids or petrol cars. The Mercedes-Benz EQE, for example, offers up to 429 miles of range on a single charge, with electricity costs far lower than fuel expenses.
  2. Compliance with regulations: With London's ULEZ (Ultra Low Emission Zone) expanding, fully electric vehicles are exempt from daily charges - something not all PHEVs can claim. Additionally, Uber offers grants of up to £5,000 to drivers adopting EVs.
  3. Driver experience: EVs like the Tesla Model X provide cutting-edge technology, a quiet cabin and advanced autopilot systems, enhancing long shifts on London’s roads.

Why an EV may not be right for you:

  • Higher upfront costs: While prices for EVs are dropping, models like the Volkswagen ID.5 still command a premium. At Ayan Capital, our rent-to-buy model, which requires a low deposit and includes insurance savings, makes these vehicles more accessible.
  • Charging times: Charging an EV takes longer than refuelling a PHEV. Although rapid chargers are widespread, drivers may need to plan their schedules around charging.

The case for PHEVs

Plug-in hybrids, such as the Mercedes-Benz E300de and Kia Niro, offer a middle ground between full electrification and traditional combustion engines. These vehicles provide electric range for urban driving while retaining petrol engines for longer trips.

Why choose a PHEV:

  1. Flexibility: Plug-in hybrids can switch seamlessly between electric and petrol modes. For instance, the Kia Sorento, a favourite of many Uber drivers, offers seven-seat practicality combined with an all-electric range of up to 35 miles.
  2. Lower upfront cost: PHEVs are generally more affordable than EVs. The Mercedes-Benz E300de, for example, combines luxury with functionality at a lower initial price compared to EV counterparts. This added prestige also makes the model ideal for executive - and thus, better paid - jobs. 
  3. No range anxiety: For drivers covering long distances or working in areas with less charging infrastructure, plug-in hybrids eliminate concerns about running out of charge.
  4. Fuel efficiency: By using electricity for short trips and petrol for motorways, PHEVs can significantly reduce fuel consumption. This hybrid strategy is ideal for navigating London's mixed traffic patterns.

Why a PHEV may not be right for you:

  • Reduced boot capacity: The positioning of the battery in plug-in hybrid vehicles is often in the rear of the vehicle. As a result, luggage capacity is often reduced in comparison to traditional petrol or diesel models. 
  • Maintenance costs: Featuring both electric and combustion engine components, PHEVs may incur higher maintenance costs compared to fully electric cars.

Smart financing made easy with Ayan Capital

At Ayan Capital, we simplify the decision for Uber drivers by offering flexible, Sharia-compliant financing tailored to your needs. Rental vehicles are affordable - starting at just £129 per week - and we also provide comprehensive insurance via one of our business partners, available as an optional extra. Key benefits include:

  • No mileage limits: Unlike traditional leases, our rent-to-buy model allows you to maximise your income without restrictions.
  • Low deposits: Initial deposits can be as low as 5%, making premium models like the Mercedes-Benz EQE or Hyundai Santa Fe more accessible.
  • Halal financing: Payments are structured as rentals, ensuring compliance with Islamic finance principles.

Additionally, at Ayan Capital, we provide guidance on selecting the right vehicle and enable drivers to adjust payment terms during slower months.

Which option is best for me?

The choice between EVs and PHEVs depends largely on your priorities as a driver. Here’s a breakdown to help you decide:

  1. Choose an EV if:some text
    • You work primarily within London and have access to reliable charging.
    • You want to minimise operating costs and emissions.
    • You qualify for grants like Uber’s £5,000 EV incentive.

Example: A driver choosing the Tesla Model Y can benefit from its 331-mile range (Long Range variants) and low electricity costs, maximising earnings during peak hours.

  1. Choose a PHEV if:some text
    • You drive long distances regularly or venture outside the city.
    • You want the flexibility of a petrol engine while transitioning to electric driving.
    • You’re looking for a lower upfront cost compared to premium EVs.

Example: A driver selecting the Mercedes-Benz E300de gains the best of both worlds with luxury features and a hybrid system optimised for varied driving conditions.

Future-proofing your investment

By 2030, the UK plans to ban sales of new petrol and diesel cars, making EVs a more future-proof option. However, PHEVs will remain viable for several years, offering a transitional solution for drivers hesitant to commit to full electrification.

In conclusion

For Uber drivers in London, choosing between EVs and PHEVs involves weighing upfront costs, range, convenience and environmental impact. With Ayan Capital’s innovative financing options, you can make informed decisions that align with both your budget and values. Whether you opt for an EV or PHEV, the goal remains the same: maximising earnings while driving towards a greener future.

Get in touch

Contact us today to explore financing options – let us help you embark on your journey to sustainable driving and building a profitable enterprise.