(qlmbusinessnews.com . Mon 30th Jun, 2025) London, UK —
New Research Uncovers Uber’s Rising Commissions and Falling Driver Pay Rates in the UK
A University of Oxford investigation has brought to light the ramifications of Uber's adoption of dynamic pricing, indicating a spike in fares for customers, reduced earnings for drivers, and an uptick in the company's revenue share. This comprehensive study, leveraging data from over 1.5 million journeys by 258 Uber drivers in the UK between 2016 and 2024, reveals a marked downturn in driver incomes since the introduction of dynamic pricing in 2023.
Critics of the study have emerged, with Uber challenging the accuracy of the findings and underscoring that drivers are informed of their potential earnings prior to accepting a trip. Despite these rebuttals, the research, conducted by the University’s Computer Science faculty, underscores a surge in Uber’s commission from roughly 25% to 29% following the dynamic pricing policy's rollout.
Simultaneously, the earnings of drivers dipped from an hourly rate of over £22 to just above £19, compounded by increased periods of unpaid wait times between fares. This development occurs amidst Uber's recent launch in Oxford, met with scepticism from local taxi operators about the platform's feasibility in the city.
The study's principal researcher, Professor Reuben Binns, stressed the growing disparity between customer charges and driver compensations, noting, “The higher the trip value, the greater the proportion Uber retains. Consequently, the more passengers pay, the lesser drivers make per minute.”
Commissioned by the Workers Information Exchange under the leadership of ex-Uber driver James Farrar—a staunch advocate for the reclassification of Uber drivers from independent contractors to workers—the study aims to shed light on the evolving economic dynamics between Uber, its drivers, and passengers.
In counterargument, an Uber representative disputed the study's findings, particularly highlighting that UK drivers collectively earned in excess of £1 billion in the first quarter of the current year alone. Uber also prides itself on offering drivers a detailed weekly earnings summary, which reportedly reveals a consistently stable commission rate over several years, albeit subject to variations.
Uber remains optimistic about its future, attributing the continued influx of drivers to its platform to the growing demand for rides, “We are proud that thousands of drivers continue to make the positive choice to work on Uber as passenger demand and trips continue to grow,” said the Uber spokesperson, amidst the ongoing debate over the platform's pricing strategy and its impact on driver welfare.
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