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Study Finds Uber Dynamic Pricing Cuts Drivers’ Pay Despite Higher Fares

Uber calls its take rate stable; University of Oxford researchers say the dynamic algorithm has cut drivers’ real pay by £3.14 an hour.

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Overview

  • The study analysed 1.5 million trips by 258 UK Uber drivers and found average pay per hour fell from £22.20 to £19.06 after dynamic pricing launched in March 2023.
  • Uber’s commission has risen from a fixed 25% to an average 29% of each fare, with some trips seeing the company take over half the passenger payment.
  • Passenger fares per driver hour increased from £32.82 to £43.50 under the new system, but drivers now spend an extra 23 minutes daily waiting for trip requests.
  • Drivers report the algorithm’s opacity has made earnings unpredictable and erased transparency on how much Uber deducts per trip.
  • Uber disputes the report’s figures, maintains its commission rate has remained stable, and says all UK drivers earn at least the national living wage.