New research reveals Uber’s algorithmic pricing leaves drivers and passengers worse off

A new study from researchers in the University of Oxford’s Department of Computer Science has found that Uber’s use of dynamic pricing has led to higher fares for passengers and lower earnings for drivers, while increasing Uber’s share of revenue.

The research also found that Uber concentrates its higher “take rate,” or commission, on higher-fare trips. The work is published on the arXiv preprint server.

Lead author Associate Professor Reuben Binns (Department of Computer Science) said, “The higher the value of the trip, the more of a cut Uber takes. So the more the customer pays, the less the driver actually earns per minute.”

The study analyzed data from 258 UK Uber drivers over more than 1.5 million trips between 2016 and 2024. This revealed a significant shift when Uber introduced a dynamic pricing algorithm in 2023. Passengers now pay more per trip, but drivers’ earnings have declined. Adjusted for inflation, drivers’ hourly income fell from over £22 to just over £19 before operating costs, and drivers are spending more unpaid time waiting for rides than before. Uber’s commission has risen from around 25% to 29% and in some cases, Uber took over half the value of the fare.

According to the researchers, this research highlights the widening gap between what customers pay and what drivers receive and raises questions about transparency and fairness in the gig economy.

The findings will be presented at the ACM Conference on Fairness, Accountability, and Transparency (FAccT 2025) at the end of June.