“DEVASTATING IMPACT”: ADCU criticises Uber over new driver terms allowing service fees of up to 49%
- Perry Richardson
- 3 hours ago
- 2 min read
The App Drivers and Couriers’ Union (ADCU) has criticised Uber for pressing private hire drivers to accept new terms and conditions by 5 January or risk losing access to the platform.
Under the revised agreement, due to take effect in 2026, Uber drivers outside London will be subject to a variable service fee ranging from 3 percent to 49 percent. The union says the structure introduces significant uncertainty over earnings and could push many drivers’ incomes to unsustainable levels, particularly once unpaid waiting time is factored in.
The ADCU argues that the new terms entrench a two-tier contractual system that treats drivers differently depending on where they operate. In London, private hire drivers are not classed as agents and contract directly with passengers. Elsewhere in the UK, drivers are treated as agents of the platform, allowing Uber to impose contracts with variable commission rates.
The union claims this distinction stems from how Uber has responded to legal rulings on employment status, and says the agency model is being used to justify wide fluctuations in service fees. ADCU has long opposed agency status, arguing that it weakens drivers’ bargaining position and allows unilateral changes to pay structures.
Union warns variable commission model will undermine pay certainty and deepen regional inequalities among private hire drivers
Cristina Georgiana-Ioanitescu, President of ADCU, said the upper end of the service fee range would make it impossible for many drivers to earn a viable living. She said a commission that can rise to 49 percent removes any ability for drivers to predict earnings.
ADCU has repeatedly called for a 15 percent cap on commission, arguing that a fixed ceiling would provide drivers with income stability while still allowing platforms to operate profitably. The union says the level of variation permitted under Uber’s new terms undermines that certainty and shifts commercial risk almost entirely onto drivers.
The union also warned that recent legislative changes have done little to protect gig economy workers who lack formal worker status. It said drivers can be removed from the app at short notice, leaving them exposed to contractual changes, including the threat of losing access to work if the new terms are not accepted.
Uber’s terms say the service fee is used to cover operational costs, regulatory compliance, technology, worker benefits and taxes, and that the percentage applied can vary by trip and product.
Cristina Georgiana-Ioanitescu said: “This move will have a devastating impact on drivers’ ability to make a living. No one can earn a decent living with a commission that can jump to 49%.
“ADCU has long called for a 15% cap on commission so drivers can predict their earnings. This level of variation destroys that certainty and risks pushing drivers below the minimum wage once waiting time is taken into account - potentially breaching Uber’s obligations following Uber v Aslam.
“The Employment Rights Bill passed in December offered little protection for gig workers without worker status. Our members can be removed from the app at any time, leaving them especially vulnerable to coercive changes like this.”
