Sun, 29 Jun 2025

Sun, 29 Jun 2025 Uber's dynamic pricing means higher fares and lower earnings for drivers, study finds

A University of Oxford study says Uber's dynamic pricing algorithm has seen drivers income decrease.
A University of Oxford study has found that Uber's dynamic pricing algorithm, introduced in 2023, has led to higher fares for passengers and lower earnings for drivers. The analysis of data from over 1.5 million trips taken by 258 UK-based Uber drivers between 2016 and 2024 suggests that the company's commission has increased from around 25% to 29%, resulting in a decline in drivers' hourly income from £22 to just over £19. The study also found that drivers are spending more time waiting for rides without earning anything, highlighting the "widening gap between what customers pay and what drivers receive". According to the researchers, Uber takes a higher cut of the fare when passengers are willing to pay more, resulting in lower earnings per minute for drivers.
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