Choosing an operator: app firms vs smaller firms

Drivers often ask whether it is better to work through a big app such as Uber or Bolt or through a smaller firm, or even run their own operation. We cannot answer that for you. The handbook does not name any company, and we have no verified figures on pay, fees or demand. What we can do is set out what the handbook says every operator must do, and give you questions to ask. Nothing here recommends one company over another.

What every operator has in common

The handbook is the same for app firms and small firms. The rules that apply:

• Licensed bookings only. You can only carry out bookings you have received from a licensed London PHV operator, in a London licensed PHV with licence discs displayed (unless exempt).
• Check the register. TfL's website has a licence checker with the details of all licensed private hire drivers, vehicles and operators. Anyone can use it. Never accept a booking from an unlicensed operator, and if in doubt, ask for the operator licence number and check it.
• Booking records. Before each journey the operator must record the booking date, passenger name, pick-up time and place, main destination, fare or estimate, and your name and vehicle.
• Copies of your documents. Operators must keep copies of your PHV driver's licence and driving licence.
• Fares. TfL has no power to set or control fares. The operator must agree a fare with the passenger or give an accurate estimate before the journey starts.
• Complaints and lost property. Operators must keep details of all complaints, report possible crimes to the police, and keep a record of lost property.
• Ridesharing. All ridesharing journeys must be booked via a licensed operator, which should also provide training for drivers.
• Cancellations. If you refuse a booking for a good reason, the operator is responsible for finding another driver or telling the passenger it is cancelled.

What the handbook does not compare

Version 1.0 does not mention app firms or traditional firms as categories, does not name Uber, Bolt or any other company, and gives no information on:

• Commission or fees the operator charges drivers.
• How much work is available, or how jobs are allocated.
• Vehicle rental, insurance, or other costs the operator may offer.
• How and when drivers are paid.
• Your employment or self-employment status. The glossary says only that "self-employed" means working for yourself and being responsible for your own tax payments, and section 1 notes that some visa holders cannot be self-employed.

Anyone who quotes you exact earnings or percentages for a particular company without a source is guessing. Ask the operator for its terms in writing, and ask a qualified adviser about tax and status.

Questions to ask any operator

1. What is your TfL operator licence number? (Then check it on the TfL register.)
2. What are the fees or deductions, in writing, and when are they taken?
3. How are drivers paid, and how often?
4. What insurance covers me and the vehicle when I am working, and is hire or reward cover included or my responsibility?
5. How do you handle a passenger who disagrees with the fare or cannot pay, and how do you give receipts?
6. What support is there if a passenger is aggressive? Do you offer lone worker devices?
7. How do I report incidents, complaints and lost property?
8. If you offer ridesharing, what training do you provide?
9. How do you handle complaints about me, and will I get a chance to respond?
10. What happens if I want to stop working for you?

Several of these come straight from handbook advice: check what to do about disputed fares, check the receipt arrangements, discuss protection with your operator, and ask about ridesharing training.

Working for more than one operator

The handbook refers to "PHV operator(s)" in the plural and says to give a copy of your licence to any licensed operators you work with. So working with several is anticipated. Each one needs its own booking, and each must be licensed. Rules from your vehicle's insurer or the operators themselves may restrict it, and the handbook does not cover that. Check your own paperwork.

If you are thinking of becoming an operator

Running an operator business is a separate licensing matter. The handbook covers driver licensing and says TfL licenses operators too, but gives no details on how. Use TfL's website and take independent legal advice.

Keep your own comparison

When you have an offer or are trying two firms, track the things you can measure yourself: hours worked, jobs done, what you were paid and what you spent. Our earnings calculator can help, before tax. See also the first-week checklist for questions to ask on day three.

Facts only from the TfL handbook. This is not financial, tax or legal advice, and we are not affiliated with any operator.