Sat Jun 21 07:00:00 UTC 2025: ## Uber Drivers’ Earnings Squeezed by Algorithm Change, Study Finds

**London, UK** – Uber drivers across the UK are facing diminished hourly earnings following the introduction of a dynamic pricing algorithm in 2023, according to a new study by the University of Oxford. The research, released on June 19th and conducted in partnership with Worker Info Exchange (WIE), analyzed data from 258 drivers and 1.5 million trips, revealing a significant increase in Uber’s “take rate” – the portion of each fare retained by the company.

The study found that Uber’s share has risen from a fixed 20-25% to an average of 29%, and in some instances exceeding 50% of a fare. This shift coincides with the implementation of the new dynamic pricing model, which sets both driver pay and passenger fares based on fluctuating demand. Researchers found that passengers now pay higher prices, drivers are not better off.

“Many drivers are earning substantially less per hour,” the report concluded, showing stagnant or declining real earnings since the algorithm’s introduction.

Unions have long voiced concerns regarding the transparency of Uber’s algorithmic pricing. The GMB Union, reacting to the report, echoed worries that the system disproportionately benefits Uber, not its drivers. They are advocating for greater clarity in fare calculations, including the impact of behavioral insights, and demanding negotiations on surge pricing splits and a review of “Engaged Time” calculations.

One driver interviewed in the study described the system as opaque, stating, “you discover they [Uber] are robbing us and the customer” upon comparing fares with passengers.

While Uber maintains that its drivers in the UK earned over £1 billion between January and March of this year, the company has disputed the study’s findings. A spokesperson stated, “Drivers choose to drive with Uber because we offer total flexibility on when they work and provide full transparency over the trips they accept.” Uber asserts that all drivers are guaranteed to earn at least the national living wage and receive weekly earnings summaries detailing the breakdown of earnings.

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