Uber charges more customers and pays drivers less, says study

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A study conducted by Oxford University revealed that the model of dynamic pricing of Uber It has negative impacts for both drivers and passengers. The research indicates that, after the adoption of this system, users began to pay more for the races, while the gains of drivers They diminished. At the same time, the company increased its participation in revenue.

THE survey was conducted by researchers from Department of Oxford Computer Sciencewho analyzed data from 258 UK Driverstotaling more than 1.5 million trips made between 2016 and 2024. The results show a significant change from 2023, when Uber implemented a new price algorithm.

Study by the University of Oxford demonstrates changes in Uber pricing (Image: Denphotos / Shutterstock.com)

Uber profits more, while drivers receive less

According to the study, the algorithm causes the Uber “service rate” – or commission – increases proportionally on higher value.
In practice, the more expensive the race for the passenger, smaller is the driver’s gain per minute worked.
“The higher the value of the trip, the greater the slice that Uber retains. This means that, as the customer pays more, the driver actually earns less per minute, ”he explained Reuben Binnsassociate teacher and main author of the research.
The survey shows that the schedule of drivers, adjusted by inflation, fell from over £ 22 to just over £ 19 before operating costs such as fuel and maintenance.
In addition, professionals are passing more idle time, without remuneration, awaiting new races.

Study shows that there was a drop in drivers’ income (image: Tero Vesalainen / Shutterstock.com)

Uber’s commission exceeds 50% in some cases

Another data that draws attention is the growth of Uber’s participation on each trip. Before the change in the algorithm, the commission average was about 25%. Currently, the percentage has risen to 29% and, in some specific cases, exceeds the 50% mark of the total value of the race.

For researchers, these numbers show a structural problem in the relationship between the platform, drivers and users. The study raises questions about the lack of transparency and justice in the remuneration models of the platform economyas is the case of Uber.

Passengers would also be affected by the new company’s new algorithm (Image: Diego Thomazini / Shutterstock.com)

The results will be officially presented in the ACM Conference on Fairness, Accountability, and Transparency (FACCT 2025)international event that discusses topics related to ethics and responsibility on algorithm -based systems at the end of June.

THE Digital Look contacted the Uber to request a position on the data presented in the research and awaits return. Once the company manifests itself, this article will be updated.