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Study Reveals Change in Uber Algorithm Affecting Ride Prices, Reducing Driver Earnings and Increasing Platform Profits in the United Kingdom, with Growing Impact Since 2023.
A study conducted by the University of Oxford reveals that the update in Uber’s pricing algorithm in the United Kingdom resulted in increased ride prices for users, a decline in hourly earnings for drivers, and an increase in the company’s profit share.
The analysis covered 1.5 million rides taken between 2016 and 2024 by 258 drivers, indicating more pronounced changes starting in 2023.
Impact of Algorithm on Prices and Earnings
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The study shows that this increase is accompanied by a proportional reduction in the amount received by drivers per minute worked, a direct consequence of the rise in the so-called “service fee” — the commission retained by Uber.
According to Reuben Binns, associate professor and lead author of the research, “the higher the fare, the larger the share that Uber retains. This means that as the customer pays more, the driver effectively earns less per minute.”
Decline in Hourly Earnings for Drivers
Before the algorithm update, drivers were earning over £ 22 per hour of work, adjusted for inflation.
After the change, this average dropped to just over £ 19 — excluding costs for fuel, maintenance, and other operational inputs.
Moreover, driver downtime has increased.
With fewer high-fare rides available, many spend long periods waiting for requests, without compensation.
Uber Commission Exceeds Half the Value in Some Rides
The study found that before the update, the average Uber commission was around 25% of the total fare.
After the change, this percentage rose to about 29% and, under certain circumstances — particularly on high-value rides — can exceed 50%.
This scenario reinforces the researchers’ diagnosis of a questionable structural relationship between the platform and service providers, evidenced by the lack of transparency in fare calculations and earnings distribution.
Survey Details and Methodology
The database analyzed includes over 1.5 million trips taken by 258 drivers in the United Kingdom between 2016 and 2024.
The researchers relied on data extracted directly from the platform, analyzing variations in earnings per minute, idle time, and composition of the fare received.
The core of the analysis focuses on the changes introduced in 2023, when the new algorithm came into operation, altering remuneration relationships.
Official Response from Uber
The Uber in the United Kingdom disputes the study’s findings.
In a statement, it claimed that partner drivers received over £ 1 billion in earnings between January and March 2025 — an amount that exceeds that registered for the same period in 2024.
The company also emphasizes that it offers total scheduling flexibility, weekly reports detailing driver earnings and platform fees, and asserts that it is pleased with the growth in demand and the number of trips.
Debate on Justice and Transparency in Digital Platforms
The research will be presented during the ACM Conference on Fairness, Accountability, and Transparency (FAccT 2025), which takes place at the end of June and gathers experts in ethics and algorithmic accountability.
According to the authors, the situation described in the study highlights a structural transparency issue in app-based transportation, affecting both workers’ earnings and the cost of services for users.
International Comparisons and Situation in Brazil
Although the study focuses on the United Kingdom, other markets have experienced similar situations.
In 2022, drivers in several cities across Europe and the United States reported declines in earnings per ride and increases in platform commissions.
In Brazil, organizations like the Brazilian Association of Mobility and Technology (Amobitec) have already warned about the vulnerability of drivers to unilateral changes in platform remuneration policies.
The national jurisprudence, which may require adjustments to the algorithmic model, is still in formation.
Perspectives and Future Regulation
The presentation of findings at FAccT 2025 may pressure platforms to adopt more transparent pricing policies.
Regulators in Europe and the United Kingdom are monitoring platform algorithms to ensure a balance between demand, supply, and remuneration standards.
Experts suggest that the Oxford study may serve as a reference for public policies that demand clear disclosures on commissions and earnings, as well as the creation of independent auditing models for pricing algorithms.
Given the evidence of declining earnings for drivers while Uber increases its share, would it be feasible to enforce stricter regulations to promote greater algorithmic transparency and protect workers in the platform economy?
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