What’s The Best Car For Uber Drivers In 2025, EVs Or PHEVs?

The eternal debate of our time—EVs (electric vehicles) versus PHEVs (plug-in hybrid electric vehicles). For Uber drivers in 2025, the choice between the two isn’t just about saving the planet (though, that’s a nice bonus); it’s about maximizing profits while avoiding range anxiety-induced panic attacks. So, what’s the best option for a rideshare warrior? Let’s break it down with some hard-hitting facts.

EVs: The Silent, Smooth, and Subsidized Kings

Pros:

• Fuel Costs? Never Heard of Them – Electricity is arguably cheaper than gas, meaning more of your hard-earned Uber fares stay in your pocket.
• Instant Torque = Instant Fun – That 5-star rating is easier to get when you can impress passengers with a smooth, spaceship-like ride.
• Low Maintenance – No oil changes, fewer moving parts, and no timing belts to worry about. Your car spends more time making money and less time in the shop.
• Tax benefits - Businesses that use company-owned electric vehicles can fully deduct the car's cost from their pre-tax profits. However, as of April 2021, this regulation was updated to apply only to fully electric vehicles, meaning hybrid cars no longer qualify for the 100% capital allowance—Just pure EVs ;)
• No More Deli Belly – You’ll be charging at home or at a fast charger, eliminating the temptation to buy an overpriced bossman sausage roll at the petrol station that’s been on the heat tray since 2019.

Cons:

• Charging Time – A gas fill-up takes 5 minutes; a full charge can take anywhere from 20 minutes (fast charging) to overnight (home charging). If you’re on the road constantly, this could be an issue.
• Charging Infrastructure – Yes, there are more chargers than ever, but if your city’s network is unreliable or perpetually occupied, you might be playing a game of "Find the Charger" rather than "Find the Passenger."
• Range Anxiety Is Real – There’s nothing more awkward than having to explain to a customer that you need to stop mid-trip to juice up🤦‍♂️.

PHEVs: The Best Of Both Worlds, or Just A Compromise?

Pros:

• Gas AND Electric? Yes, Please! – You get the best of both worlds. If you’re in a rush and don’t have time to charge, no problem! You have a gas backup. If you don’t want to spend the extra money on gas for the week, no problem! You have a battery backup.
• No Range Anxiety – Unlike EV drivers who live in fear of a dead battery, you can just switch to gas when needed. You’ll never have to nervously watch the percentage drop while stuck in traffic.
• Ideal for Long-Distance Driving – If your Uber routes include highway trips or out-of-town rides, a PHEV gives you the flexibility to go the distance without worrying about charging stops.

Cons:

• More Moving Parts = More Maintenance – You still have an engine, transmission, and all the joys of traditional car ownership (like oil changes and exhaust systems).
• Less Electric Range – Most PHEVs only offer 20-50 miles of electric range before switching to gas. That’s enough for some Uber trips but not for a full day of emission-free driving.
• You’re Still Buying Gas – Sure, less gas than a regular car, but those savings aren’t as massive as a full EV’s potential fuel savings.

Cost Savings: EV vs. PHEV

When it comes to maximizing earnings as an Uber driver, costs matter. Here’s a quick breakdown of how EVs and PHEVs compare in key areas:

Fuel/Energy Costs

• EV: Charging at home costs around £0.10–£0.15 per kWh, meaning a full charge could be as little as £5–£10, depending on battery size. Fast charging is more expensive but still cheaper than gas.

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• PHEV: Electricity for short trips is cheap, but once the battery depletes, gas costs kick in. With gas prices averaging £1.4 per litre, you’ll still be spending significantly more than an EV driver.

Maintenance Costs

• EV: With fewer moving parts, EVs require less maintenance—no oil changes, no transmission issues, and fewer brake replacements thanks to regenerative braking.

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• PHEV: While PHEVs have an electric motor, they still have an internal combustion engine, meaning oil changes, spark plugs, and transmission servicing are still necessary.

Total Cost of Ownership

• EV: Higher upfront costs, but lower fuel and maintenance expenses make them more cost-effective over time. Uber incentives, tax benefits and lower depreciation rates further add to the value.

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• PHEV: Lower initial cost compared to EVs, but higher long-term fuel and maintenance expenses may balance out the savings.

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Here's a more concise and streamlined matrix table comparing EVs and PHEVs:

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So, What’s The Verdict?

If you’re an Uber driver who works mostly in a city with great charging infrastructure and doesn’t mind planning charging breaks, an EV is the clear winner. Low operating costs, fewer breakdowns, and that sweet instant torque make it the best long-term option.

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However, if you do a mix of city and highway driving, or your area’s charging network is sketchy at best, a PHEV offers flexibility without completely tying you down to the grid.

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Either way, you’ll be making money while helping the environment—just don’t forget to keep your car clean and offer your passengers some top-tier playlist choices (nobody wants to hear your "Best of Yodeling 2024" collection). 

And as always, whether you want an EV, PHEV or a spaceship, Ayan can finance any car from any dealership, so be sure to fill out an application and get approved when you need to get your next Uber car! Drive Safe!