UK (Parliament Politics Magazine) – Oxford research reveals UK Uber drivers earn less post-2023 as secret fare algorithms raise prices but cut drivers’ share to as low as 50%.
As reported by The Guardian, an Oxford University study found that UK Uber drivers are earning substantially less hourly pay after the 2023 pricing changes.
How did Uber’s 2023 pricing algorithm impact UK drivers?
A study published Thursday by Oxford researchers revealed data from 258 UK Uber drivers who completed 1.5 million trips.
Uber initially took a 20% cut from UK fares, later raised it to 25%, before unveiling dynamic pricing in 2023 to adjust driver pay and passenger charges. The system is a newer version of Uber’s “surge pricing,” which increased fares during periods of high demand.
What did Oxford research reveal about Uber’s pay cuts?
The Oxford research stated,
“Post-dynamic pricing, Uber’s passengers now pay higher prices, but the drivers are not better off.”
In partnership with Worker Info Exchange, the paper concluded that,
“Our findings suggest that post-dynamic pricing, many aspects of Uber drivers’ jobs have gotten worse. Average pay per hour on the app is stagnant, and is lower in real terms in the year following the introduction of dynamic pricing.”
It said,
“Uber’s median take rate per driver has increased from 25% to 29%, and on some trips the take rate is over 50%. Furthermore, the higher take rates are concentrated among higher-fare trips, which explains how Uber can extract an additional 38% [income] from its drivers’ labour on average … Many drivers are earning substantially less per hour.”
The findings came after years of scandals for the tech giant. In 2021, the UK Supreme Court ruled Uber drivers were entitled to minimum wage and paid holidays. Then, in 2022, the Uber Files leak exposed the company’s secret efforts to deceive regulators and influence policymakers.
According to the findings, drivers earned £29.46 per hour using Uber’s method. However, when waiting time was included, earnings dropped to £15.98, excluding costs like fuel, insurance, and maintenance.
Jill Hazelbaker’s views on Uber’s past actions
Following the release of the Uber files, Jill Hazelbaker, Uber’s senior vice-president of public affairs, stated,
“We have not and will not make excuses for past behaviour that is clearly not in line with our present values. Instead, we ask the public to judge us by what we’ve done over the last five years and what we will do in the years to come.”
What did Uber say about UK driver earnings in 2025?
An Uber spokesperson stated,
“Uber drivers in the UK took home over £1bn in earnings between January and March of this year, which is up on the year before. Drivers choose to drive with Uber because we offer total flexibility on when they work and provide full transparency over the trips they accept.”
They added,
“All drivers receive a weekly summary of their earnings, which includes a clear breakdown of what Uber and the driver received from trips. 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.”
Key statistics about Uber in the UK
Market presence & growth
- The UK ride-sharing market was worth $3.73 billion in 2024.
- It’s expected to grow to $14.62 billion by 2033.
- Uber added £5 billion to the UK economy in 2022, up from £3.2 billion in 2019.
Driver & vehicle statistics
- In 2024, there were 381,092 private hire drivers in England.
- 69% hold PHV-only licences, mostly working with Uber.
- PHVs, including Uber, make up 82% of licensed vehicles.
- More than 10,000 electric cars run on Uber’s UK platform.