News Summary

A recent study by the University of Oxford has revealed that UK Uber drivers are earning substantially less per hour since the introduction of a dynamic pricing algorithm in 2023. This algorithm, which adjusts both driver pay and passenger fares, has led to Uber taking a higher share of fares—rising from a 20% to a 29% cut, and in some cases over 50%. Despite passengers paying higher prices, drivers have not seen an improvement in their earnings. The report highlights that Uber’s take rate is higher on trips with greater fares, extracting an additional 38% from drivers’ labor on average. This has sparked criticism from unions and a broader conversation about the transparency and fairness of gig economy practices. Uber, however, maintains that drivers still earn above the national living wage and benefit from the flexibility of their work.