Uber drivers across the UK are earning significantly less per hour following the introduction of a new “dynamic pricing” algorithm, according to a new study by researchers at the University of Oxford.
The report, published on 19 June in collaboration with Worker Info Exchange (WIE), analysed data from 258 Uber drivers across 1.5 million trips. It reveals a substantial shift in Uber’s “take rate” — the percentage of a fare Uber retains — rising from a fixed 20–25% to an average of 29%, with some instances showing Uber taking more than 50%.
The algorithm, rolled out in 2023, replaced the traditional “surge pricing” model and now dynamically sets both the driver’s pay and the passenger’s fare. However, researchers found that while passengers are often paying more, drivers are not benefiting from those increases. Instead, their hourly pay has stagnated or declined in real terms since the new system was introduced.
“Many aspects of Uber drivers’ jobs have become worse,” the study concludes, adding that “many drivers are earning substantially less per hour.” The research has reignited calls from unions for greater transparency in Uber’s pricing systems and driver pay.
The GMB Union, which has been pushing for stronger rights for gig economy workers, welcomed the report and reiterated its concerns over how Uber uses algorithmic pricing. The union is demanding clearer information on how fares are calculated, especially around the role of so-called “behavioural insights,” which may influence pricing in opaque ways.
A key point of contention is how much of the “surge pricing” benefit actually reaches drivers. GMB also wants a review of how “Engaged Time” — the period during which a driver is considered to be working — is calculated.
One driver cited in the report said it was only when passengers disclosed the amount they had paid for a journey that drivers realised the scale of Uber’s cut: “You discover they [Uber] are robbing us and the customer.”
In response, Uber strongly disputed the findings. A spokesperson said: “Uber drivers in the UK took home over £1 billion in earnings between January and March of this year, which is up on the year before. Drivers choose to drive with Uber because we offer total flexibility on when they work and provide full transparency over the trips they accept.”
The company insists that all drivers earn at least the national living wage and receive a weekly breakdown showing how much of each fare went to Uber versus the driver.
Despite Uber’s assurances, pressure is growing for regulatory oversight and fairer distribution of earnings — especially as the platform continues to raise prices for passengers without a corresponding uplift in driver income.
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