Government maintains hands-off stance on ride-hailing commission fees amid transparency concerns
- Perry Richardson
- Apr 21
- 2 min read
The UK Government has confirmed it is not directly intervening in the commission structures used by ride-hailing platforms, stating such arrangements remain a matter of contract between drivers and operators.
In a written parliamentary response, Kate Dearden MP, minister for Department for Business and Trade, said the department continues to monitor employment practices in the sector but has not outlined specific measures targeting commission variability.
The response followed a question from Liz Jarvis, Liberal Democrat MP for Eastleigh, who asked what assessment had been made of the structure and variability of fees charged by ride-hailing platforms and what action was being taken to ensure fairness and transparency for drivers.
Dearden reiterated that commission arrangements are governed by contractual agreements between drivers and their employer or platform. She added that where drivers are classified as workers or employees, companies must comply with existing employment law, including obligations to pay at least the National Minimum Wage and provide paid holiday entitlement.
Ministers say platform-driver fee structures remain contractual as scrutiny over fairness and earnings continues
The Government’s position signals a continuation of its current regulatory approach, which places responsibility on existing employment frameworks rather than introducing sector-specific controls on commission rates. This is likely to be closely watched by private hire drivers and taxi industry stakeholders, many of whom have raised concerns about fluctuating commission levels and a lack of clarity over how fares are split.
The department said it continues to review published research and stakeholder correspondence relating to working conditions in the gig economy. However, no formal assessment or benchmark on acceptable commission levels has been disclosed.
Minister Dearden said: “The Department recognises the importance of ride-hailing platforms to the UK transport industry and continues to monitor published research and correspondence on employment practices in the sector.
“Commission arrangements are a contractual arrangement between the driver and employer. Where a driver is classified as a worker or employee, the employer must comply with employment law, ensuring that drivers receive at least the National Minimum Wage and paid holiday.
“The Government encourages platforms to operate fairly and is taking steps through its Plan to Make Work Pay, including a consultation on employment status and the establishment of the Fair Work Agency.”
