Posted: 23rd June 2025

A new study from department researchers has found that Uber’s use of dynamic pricing has led to higher fares for passengers and lower earnings for drivers, whilst increasing Uber’s share of revenue.  

The research also found that Uber concentrates its higher ‘take rate’, or commission, on higher-fare trips: 

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 Lead author Associate Professor Reuben Binns 

Researchers analysed data from 258 UK Uber drivers over more than 1.5 million trips between 2016 and 2024. The study reveals 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 per cent to 29 per cent and in some cases, Uber took over half the value of the fare. 

The 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 researchers will present their findings at the ACM Conference on Fairness, Accountability, and Transparency at the end of June, 2025.