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

Core Insights - A study from the University of Oxford reveals that Uber's dynamic pricing strategy has resulted in increased fares for passengers while simultaneously decreasing earnings for drivers, thereby enhancing Uber's revenue share [3][4]. Summary by Categories Pricing and Earnings - The research indicates that Uber's commission, or "take rate," has increased from approximately 25% to 29%, with some instances where Uber takes over half of the fare value [4]. - Drivers' hourly income, adjusted for inflation, has decreased from over £22 to just over £19 before operating costs, indicating a decline in driver earnings despite higher passenger fares [4]. Driver Experience - The study highlights that drivers are now spending more unpaid time waiting for rides compared to previous periods, which further impacts their overall earnings [4]. Research Findings and Implications - The findings underscore a growing disparity between what customers pay and what drivers receive, raising concerns about transparency and fairness within the gig economy [5]. - This research will be presented at the ACM Conference on Fairness, Accountability, and Transparency (FAccT 2025) [5].