Dynamic pricing helps make more trips happen, says Uber UK chief
- Perry Richardson
- 7 minutes ago
- 2 min read
Dynamic pricing helps make more trips happen and in turn creates more opportunities for drivers to earn, according to Uber’s UK General Manager Andrew Brem.
As part of a wider exclusive interview with TaxiPoint, Brem defended the platform’s pricing model amid ongoing debate within the taxi and private hire sector about the merits of flexible versus fixed fares. He said the core purpose of dynamic pricing is to increase the likelihood that a journey takes place in varying market conditions.
“At its heart, dynamic pricing helps make more trips happen and that creates more opportunities for drivers to earn,” Brem said. “With dynamic pricing, fares adjust to specific local conditions, so fares will reflect factors such as how many trips are being requested at a particular moment, the availability of drivers in the area, and where the trip starts and ends. Things like the weather and time of day make a difference.”
The model, widely used across ride-hailing platforms, allows prices to rise or fall based on real-time demand and supply. When demand outstrips driver availability, fares increase to incentivise more drivers to log on or reposition. During quieter periods, lower fares aim to stimulate rider demand. For operators, this approach is designed to balance the marketplace without manual intervention.
Andrew Brem argues flexible fares increase trip volumes and create more earning opportunities for drivers
Brem said the pricing structure is intended to work for both sides of the transaction. “Dynamic pricing is there to create the highest likelihood for a trip to happen by making pricing attractive for both riders and for drivers,” he said.
He also addressed concerns about the proportion of fares retained by the company. “Since both rider and driver fares adjust, the amount that Uber keeps from the rider fare varies from trip to trip, from virtually zero to almost half, but this quickly averages out,” Brem said. “We encourage drivers to look at their weekly summary to see how much Uber kept from their week’s fares. We often find that drivers are pleasantly surprised when they see the average amount over the week’s trips. We’re absolutely clear that the majority of fares go where they belong: in drivers’ pockets.”
The comments come as private hire drivers across the UK continue to scrutinise platform commission levels and pricing transparency, particularly during periods of high demand or adverse weather when surge-style pricing becomes more visible to passengers.
While traditional taxi tariffs are typically set by local licensing authorities and adjusted through periodic reviews, app-based private hire platforms retain discretion to vary pricing dynamically within regulatory frameworks. As the industry continues to examine the role of algorithmic pricing in transport markets, the debate over stability versus flexibility is likely to remain central to discussions between platforms, drivers and regulators.
For drivers weighing up which model best supports sustainable earnings, Brem’s position is that trip volume and marketplace balance remain key.
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