What happened

Uber introduced its AI-powered dynamic pricing system in the UK in 2023 to set the pay of its drivers and their assign work in real time.

University of Oxford researchers analysed deployed data subject access requests (DSARs) at scale to evaluate the impact of algorithmic pricing on the livelihoods of 258 Uber drivers in the UK, drawing on data from 1.5 million rides from 2016 to 2024.

The researchers discovered that passenger fares increased, but driver earnings per hour dropped from over GBP 22 to just above GBP 19 before operating costs. The study also noted that drivers spend more unpaid time waiting for rides.

Meantime, Uber’s commission rose to 29 percent, sometimes taking over half the fare value. Prior to dynamic pricing, Uber’s commission had been fixed at 25 percent. 

The research highlights growing disparity and reduced predictability in driver pay and questions the fairness of Uber's algorithmic management approach

It also notes broader social and environmental harms from excess drivers and congestion.

Uber responded by saying it did "not recognise the figures in this report." 

Why it happened

Uber likely introduced its AI dynamic pricing system to increase its revenue and margins in an increasingly competitive marketplace.

The company concealed the mechanics and impacts of the system and refused access to its customers, drivers and third parties.