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.
Was this supposed to be surprising? Anyone who’s been either a driver or customer with Uber over the last few years has recognized this trend. Same goes for Lyft. They opened with super-low fares to beat local cab companies and build habits. Now it’s time to go back to the few local companies that were able to hold out against the “disruption”.