UBER’S “dynamic pricing” system has slashed driver wages while boosting the company’s cut, according to new research released today.

A new independent study, published by researchers from the University of Oxford in partnership with Worker Info Exchange (WIE), analysed 1.5 million trips by 258 Uber drivers taken between 2016 and 2024.

It found that the average pay per hour, adjusted for inflation, fell from £22.20 to £19.06 — before considering operating costs such as vehicle rent, maintenance, fuel and insurance. 

Meanwhile, Uber’s commission, which was previously fixed at 25 per cent, has become less transparent, the study says, resulting in higher cuts of up to 50 per cent or more on certain trips. 

In a separate analysis, Worker Info Exchange looked at the percentage of fare revenue retained by Uber, its global “take rate,” which had increased from 20 per cent in 2021 to 30 per cent in 2024, following the introduction of dynamic pricing. 

It is estimated that drivers in Britain lost out on $1.6 billion (£1.19bn) in the 12 months to March 31 2025, as a result of Uber increasing its share of the fare.

Worker Info Exchange director James Farrar said: “Uber UK managers must now come clean and explain to their workers how their pay is set — and how much of each fare the company is taking. 

“If Uber is allowed to continue getting away with the algorithmic trickery of its so-called ‘dynamic pay’ model, we should not be surprised when hyper-variability and AI-induced precarity in pay become the norm across the entire labour market.”

Uber was contacted for comment.