UBER drivers face losing their jobs after being told to accept between 3 and 49 per cent variable service fees, the App Drivers and Couriers Union (ADCU) said today.

The warning came after the US ride-hailing company announced a tie-up with Chinese firm Baidu to deploy self-driving technology in London next year.

Uber drivers outside the capital will be required to accept the fees under “deeply unfair” new terms and conditions due to apply from next year, creating “huge uncertainty over pay and pushing many drivers’ earnings to unsustainable levels,” said the union.

ADCU accused Uber of exploiting a Supreme Court judgment which has enabled a two-tier contract system. Drivers have until January 5 to accept the new agreement.

Drivers outside the capital are classed as agents, allowing Uber to impose contracts with variable commission rates. In London, they contract directly with passengers. 

ADCU president Cristina Georgiana-Ioanitescu said: “This will have a devastating impact on drivers’ ability to make a living. No-one can earn a decent living with a commission that can jump to 49 per cent.

“ADCU has long called for a 15 per cent cap on commission so drivers can predict their earnings.

“This level of variation destroys that certainty and risks pushing drivers below the minimum wage once waiting time is taken into account — potentially breaching Uber’s obligations following Uber v Aslam.

“The Employment Rights Bill passed in December offered little protection for gig workers without worker status. Our members can be removed from the app at any time, leaving them especially vulnerable to coercive changes like this.”

Uber was contacted for comment.