Recent research from Oxford University has revealed that Uber's algorithmic pricing system negatively impacts both drivers and passengers. The study, led by Associate Professor Reuben Binns from the Department of Computer Science, analyzed data from 258 UK Uber drivers over more than 1.5 million trips between 2016 and 2024.
The findings indicate a significant shift since Uber introduced a dynamic pricing algorithm in 2023. According to Binns, "The higher the value of the trip, the more of a cut Uber takes. So the more the customer pays, the less the driver actually earns per minute." This suggests that while passengers are paying more per trip, drivers' earnings have declined.
Adjusted for inflation, drivers' hourly income fell from over £22 to just over £19 before operating costs. Additionally, drivers are spending more unpaid time waiting for rides than before. Meanwhile, Uber's commission has increased from around 25% to 29%, with instances where Uber took over half of the fare's value.
The research raises questions about transparency and fairness in the gig economy by highlighting "the widening gap between what customers pay and what drivers receive," according to researchers involved in the study.
This study will be presented at the ACM Conference on Fairness, Accountability, and Transparency at the end of June 2025. It was conducted in collaboration with Worker Info Exchange, a non-profit organization dedicated to helping workers access information and gain insights from data collected during their work. Alongside Binns were DPhil student Jake Stein, Research Associate Siddartha Datta, Associate Professor Max Van Kleek, and Professor Sir Nigel Shadbolt.
The full study titled 'Not Even Nice Work If You Can Get It; A Longitudinal Study of Uber's Algorithmic Pay and Pricing' is available on arXiv.