Driver Guide 03

£ per mile vs £ per hour: which should a rideshare driver use?

The problem

Drivers often ask one question:

Should I judge a ride by £ per mile or £ per hour?

The useful answer is: they tell you different things.

A ride can be strong on time but weak on distance. Another can be strong on distance but slow enough to give a weaker hourly result.

That is why looking at both can give a clearer picture.

Why it matters

£ per hour looks at time

It helps answer:

How well is this offer paying for the time tied to it?

That is useful because a driver only has so many working hours in a day.

£ per mile looks at distance

It helps answer:

How much fare is being generated for the distance included in the analysis?

That matters because miles are not free. More distance generally means more fuel or electricity and more vehicle use.

Neither number tells the whole story on its own.

How to work it out

£ per hour

Fare ÷ analysed hours

£ per mile

Fare ÷ analysed miles

The important word is analysed.

A basic calculation may include pickup and passenger journey. FareWorth can also reflect the driver’s selected Dead Miles treatment where relevant, changing the time and distance used in its analysis.

Simple worked example

These examples are illustrative and deliberately simplified.

Offer A — stronger on time, weaker on distance

  • Fare: £12
  • Analysed time: 20 minutes
  • Analysed distance: 10 miles

£/hour:

£12 ÷ 20 × 60 = £36/hour

£/mile:

£12 ÷ 10 = £1.20/mile

This offer looks strong on time, but the distance rate is much lower than the hourly rate might make it feel.

Offer B — stronger on distance, weaker on time

  • Fare: £16
  • Analysed time: 45 minutes
  • Analysed distance: 6 miles

£/hour:

£16 ÷ 45 × 60 ≈ £21.33/hour

£/mile:

£16 ÷ 6 ≈ £2.67/mile

This offer looks much stronger on distance, but the time-based result is lower.

There is no universal rule saying Offer A or Offer B is “better”. That depends on the driver’s own targets, vehicle and working priorities.

What to watch out for

A high £/mile can still be slow

Traffic, waiting and a slow passenger journey can produce a good distance rate but a poor time rate.

A high £/hour can still mean a lot of miles

A fast long-distance job may pay well for time while putting many miles on the vehicle.

Mileage cost varies by vehicle

The same £1.50/mile can feel different in a very efficient car and a vehicle with higher fuel or energy costs.

Dead Miles can change the picture

If the driver chooses to include a return or repositioning allowance, analysed time and distance can both increase.

How FareWorth helps

FareWorth is designed to show both analysed hourly and distance rates on supported driver apps.

The driver can choose whether hourly or distance rate is the leading measure and can set their own preferred and minimum thresholds.

That means the product does not need to decide that £/mile is always more important or that £/hour is always more important.

The driver decides what matters most to them.

Practical takeaway

  • £/hour tells you about time.
  • £/mile tells you about distance.
  • A ride can look good on one and weak on the other.
  • Vehicle costs and Dead Miles can change the picture.
  • Use the measure that matters most to you, but do not ignore the other one.
Offer A£36/hour£1.20/mile · £12 · 20 min · 10 mi
Offer B£2.67/mile£21.33/hour · £16 · 45 min · 6 mi
“Offer A pays £36 per analysed hour and £1.20 per analysed mile. Offer B pays about £21.33 per analysed hour and £2.67 per analysed mile. The examples show why hourly and distance rates answer different questions.”