A new study from researchers in the University of Oxford's Department of Computer Science has found that Uber's use of dynamic pricing has led to higher fares for passengers and lower earnings for drivers, while increasing Uber's share of revenue.

The study analyzed data from 258 UK Uber drivers over more than 1.5 million trips between 2016 and 2024. This revealed a significant shift when Uber introduced a dynamic pricing algorithm in 2023. Passengers now pay more per trip, but drivers’ earnings have declined. Adjusted for inflation, drivers’ hourly income fell from over £22 to just over £19 before operating costs, and drivers are spending more unpaid time waiting for rides than before. Uber’s commission has risen from around 25% to 29% and in some cases, Uber took over half the value of the fare.

  • AlecSadler@lemmy.blahaj.zone
    4·
    1 year ago

    This is why on the rare occasion I even use these services, I get their contact info and just pay them directly in the future.

    Look, sometimes I need a driver. Maybe I drank too much at a bar, maybe I’m coming back from the airport, I don’t know. But I’ll gladly pay extra to an individual knowing that they don’t have to pay a corporation.