UBER UPDATE
RESEARCH REVEALS UBER DRIVERS SEE EARNINGS CUT AMIDST ALGORITHM CHANGES
Uber drivers across the UK are earning “substantially less” per hour following the introduction of a “dynamic pricing” algorithm in 2023, which has also coincided with Uber taking a significantly larger share of fares, new research from the University of Oxford has found. The study, released on 19 June by Oxford academics, analysed data from 258 UK Uber drivers covering 1.5 million trips. It reveals a dramatic shift in Uber's “take rate,” from an initial fixed 20% (later rising to 25%) to an average of 29%, and in some instances, exceeding 50% of a fare. The dynamic pricing model, an evolution of Uber’s previous “surge pricing,” was implemented in 2023, variably setting both driver pay and passenger fares. However, the research
indicates that while “Uber’s passengers now pay higher
prices, but the drivers are not better off.” The findings suggest that “many aspects of Uber drivers’ jobs have become worse,” with average hourly pay stagnant and declining in real terms since the algorithm’s introduction. The report,
con-
cluded that: “Many drivers are earning substantially less per hour.” Unions have long criticised Uber’s lack of transparency regarding its algorithmic pricing. The GMB Union, welcomed the report but expressed concerns that the system primarily benefits Uber, not drivers and is seeking greater clarity on fare cal- culations, including the role of “behavioural insights.” It is also calling for negotiations on the proportion of surge pricing drivers receive and a review of “Engaged Time” calculations. One driver interviewed for the
study highlighted the opaque nature of the new system, stating, it’s only when passengers volun- teered the fare
prices in
conversations with drivers that “you discover Uber is robbing us and the customer”. Despite the research findings, Uber disputes the figures. A spokes- person said: “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 flexibility when they work and provide full trans- parency over the trips they accept.” Uber maintains that “Every driver is guaranteed to earn at least the national living wage” and that “All drivers receive a weekly summary of their earnings, which includes a clear breakdown of what Uber and the driver received from trips.”
UBER SECURES FIVE-YEAR LICENCE TO OPERATE IN YORK AFTER INITIAL 12-MONTH LICENCE
Uber has been granted a five-year PH licence to continue operating in York. The decision, made by City of York Council officers through delegated powers, follows a 12- month probationary period that began in June 2024. The council stated that Uber “met the conditions of licensing to operate in York” during this initial period, paving the way for the longer renewal. This marks a significant turn- around from 2017 when the council refused to renew Uber’s licence due to a “significant data
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breach and 155 complaints lodged against its drivers.” Matthew Freckelton, Uber’s head of cities, expressed the company’s delight, noting that expansion into other cities has taken place over the past 18 months. He highlighted Uber’s growing presence in York, now based at the Bonding Warehouse, and its commitment to recruiting local drivers. Two key conditions imposed last year remain in force: ensuring drivers know how to access the city centre through bollards for blue badge holders and guiding drivers
away from official taxi ranks. Matt Boxall, head of public protection at the council, stated: “Over that 12-month period, Uber met the conditions of licensing to operate in York.” He added that the renewal “inclusive of additional conditions approved by
the
committee at that time, including conditions relating to
the
availability of WAVs, the use of drivers and vehicles that are licensed in other areas, and the importance of providing city centre access for Blue Badge holders.”
JULY 2025 PHTM
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