UK Uber Dynamic Pricing Cuts Driver Pay Raises Fares

A series of studies from Oxford University reveal that Uber's 2023 introduction of a dynamic pricing algorithm in the UK has increased fares for customers while reducing pay and autonomy for drivers. Analysis of 1.5 million trips from 258 drivers indicates that average driver pay per hour fell from £22.20 to £19.06 after dynamic pricing, with many drivers earning less than the national minimum wage once expenses are accounted for. Meanwhile, Uber's commission rose from a fixed 25% to as high as 50% on some trips, with higher take rates concentrated among more expensive fares, boosting Uber's income significantly. The new system also increased driver wait times and made earnings less predictable, reducing driver control over work schedules, which critics have termed "algorithmic gamblification." Unions and gig worker organizations have called for urgent policy changes due to the lack of transparency and worsening working conditions, arguing that Uber benefits at the expense of both drivers and passengers. Uber has rejected these findings, but the research highlights growing inequality among drivers, with newer or part-time drivers sometimes benefiting while the majority of long-serving drivers see decreased earnings.