Sat Jun 21 07:00:00 UTC 2025: **Uber Drivers See Earnings Slashed as App’s Algorithm Takes a Bigger Cut, Study Finds**

**London, UK** – Uber drivers in the UK are experiencing significant drops in earnings and a lack of transparency due to changes in the ride-hailing app’s pricing algorithm, according to a new report by the University of Oxford in conjunction with Worker Info Exchange (WIE). The study, based on data from 1.5 million trips by 258 UK Uber drivers, reveals that since the introduction of “dynamic pricing” in 2023, Uber’s “take rate” – the percentage of the fare taken by the company – has soared, sometimes exceeding 50%.

This shift, drivers say, has made it increasingly difficult to predict their earnings and plan their working lives. Abdurzak Hadi, a long-time Uber driver who previously sued the company for minimum wage entitlements, stated the previous system was transparent. Now, he says, the calculations are far more opaque.

The study found that Uber’s average take rate has risen to 29%, with higher-value rides seeing an even greater percentage going to the company. WIE estimates that UK Uber drivers have lost out on $1.6 billion in pay in the 12 months leading up to March 2025 due to Uber’s increased share.

Uber disputes these figures, claiming its take rate has remained “steady” at 25%. The company stated that the app uses real-time information to optimize pricing for drivers, ensuring minimal wait times and maximized earnings, and that drivers see their potential earnings before accepting a trip.

However, the report contradicts this by pointing to increased unpredictability in driver pay, stating that “any tacit knowledge drivers have built up over years about how much pay a given trip is likely to yield may no longer help them.”

Despite the criticisms, Uber maintains that drivers choose to work with them due to the flexibility and transparency they offer. A company spokesperson emphasized that UK drivers earned over £1 billion between January and March of this year and receive a weekly earnings summary with a clear breakdown of fares.

The report raises concerns about the growing power of algorithms in controlling gig workers’ livelihoods and the potential for reduced transparency and earnings in the ride-hailing industry.

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