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.

  • chaosCruiser@futurology.todayEnglish
    28·
    2 days ago

    has led to higher fares for passengers and lower earnings for drivers, while increasing Uber’s share of revenue

    Sounds like the steps 2 and 3 on the path of enshittification.