Uber will contribute 3% of a driver’s earnings into a pension pot, while drivers can choose to contribute a minimum of 5% of qualifying earnings. Eligible drivers will be able to opt-out of the pension scheme, if they choose.

Drivers will also receive back payments dating back to 1 May 2017 or the date of their first Uber trip if they joined more recently.

Uber is also pushing for rival operators such as Bolt, Addison Lee and Ola to join it and work together to create a cross-industry pension scheme. GMB Union has also called for other platform-based operators to follow Uber’s lead in providing pensions for drivers.

Jamie Heywood, regional general manager of northern and eastern Europe for Uber, said: “We want to ensure that all eligible drivers can benefit no matter who they earn with, so today I am extending an invitation to work with operators such as Bolt, Addison Lee and Ola to create a cross-industry pension scheme. The new worker rights provided to drivers who use the Uber app are and save for their futures.”

Patrick Luthi, chief executive of NOW: Pensions, said: “NOW: Pensions are proud to be selected as Uber’s pensions partner and play our part in delivering access to valuable pension benefits to their UK drivers. This is a landmark step forward for this sector and we pledge our support to develop a cross-industry pension scheme. Furthermore, we want to help other industries provide their flexible workers with access to pensions as part of our mission to create a fair pension system for all.”

The move comes six months after Uber granted workers’ rights to its drivers in the UK. In March, Uber reclassified its approximate 70,000 drivers in Britain as workers following a Supreme Court ruling.

Mick Rix, GMB national officer, said: “Uber’s pension scheme is a massive step in the right direction and will no doubt help thousands of drivers as they reach retirement age. GMB urges other platform-based operators to follow Uber’s lead.”