Uber rejects University of Oxford study that finds drivers see drop in pay under ‘Dynamic’ pricing
- Perry Richardson
- Jun 19
- 3 min read
Updated: Jun 20
A new study from the University of Oxford and Worker Info Exchange has found that Uber’s use of dynamic pay has cut driver earnings, increased the company’s commission, and left pay levels unpredictable and unequal.
The research, based on 1.5 million journeys from 258 drivers who accessed their own data, is the first large-scale audit of algorithmic pay practices using GDPR rights. The report, Not Even Nice Work If You Can Get It, examines the shift in Uber’s pricing and pay system since it adopted AI and machine learning to set fares and allocate jobs in real time.
Gross hourly earnings have fallen from £22.20 to £19.06 since dynamic pay was introduced. Once running costs are factored in — such as insurance, vehicle hire, fuel and other expenses — many drivers are left earning less than the national minimum wage. This comes despite the 2021 Supreme Court ruling that granted Uber drivers worker rights.
The study also points to growing inequality. Over 80% of long-serving drivers now earn less than they did before the algorithmic system came in. A smaller number, mainly newer or part-time drivers, are seeing higher pay — but the benefits are not shared across the workforce.
Driver pay has also become more uncertain. The research shows that it is now much harder for drivers to predict earnings based on when and where they work. While Uber says its model gives drivers flexibility, the report suggests algorithms now control when and where work is available, reducing driver autonomy.
According to the report, Uber’s cut from fares has also grown. Before dynamic pricing, its commission was fixed at 25%. It now takes up to 50% on some trips, with little transparency. Standby hours — when drivers are logged in but not earning — have increased by more than an hour a week on average since 2022.
Worker Info Exchange has called this shift a move toward “algorithmic gamblification”, where drivers have no say or oversight on how prices are set, leaving them to gamble on when and where work will pay off. One driver quoted in the study said: “They [Uber] are robbing us and the customer.”
On a national scale, Worker Info Exchange estimates that UK Uber drivers lost $1.6 billion in pay between April 2024 and March 2025. This is based on Uber’s global rise in commission from 20% to 30% over the period.
In response to the findings, Worker Info Exchange is calling for urgent policy changes. These include a ban on dynamic pay, proper enforcement of employment rights, pay for all working time, and greater transparency of pricing algorithms for both drivers and passengers.
An Uber spokesperson rejected the report’s findings, stating:"We do not recognise the figures in this report. Uber drivers in the UK took home over £1 billion 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. 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."
James Farrar, Director of Worker Info Exchange, said: “Uber UK managers must now come clean and explain to their workers how their pay is set — and how much of each fare the company is taking. If Uber is allowed to continue getting away with the algorithmic trickery of its so-called ‘dynamic pay’ model, we should not be surprised when hyper-variability and AI-induced precarity in pay become the norm across the entire labour market.”
Reuben Binns, Associate Professor of Human Centred Computing, University of Oxford said: "Uber's dynamic pricing and pay algorithms are squeezing drivers while fleecing customers. The more customers pay, the higher Uber's cut, and the less drivers keep, meaning that drivers are worse off even as they generate more profits for Uber."
