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Rough ride: how Uber quietly took more of your fare with its algorithm change
- Abdurzak Hadi, a former Uber driver involved in a legal battle, still faces challenges driving for the company.
- A recent study by the University of Oxford and Worker Info Exchange revealed insights into Uber's pricing algorithm.
- The study found that Uber drivers have seen a decrease in earnings since the introduction of a dynamic pricing algorithm in 2023.
- Uber's algorithm adjusts trip prices based on factors like time, distance, available drivers, demand, traffic, and weather.
- The new algorithm resulted in Uber taking a higher cut of fares, reducing drivers' control over earnings.
- Uber's take rate averaged 29% of a fare, rising to over 50% in certain cases, as per the study.
- The data contradicts Uber's claim of a steady 25% take rate and suggests drivers may experience earnings reduction.
- According to the study, drivers face unpredictability in pay post-dynamic pricing, impacting their livelihoods.
- Drivers expressed concerns over the lack of transparency and the changing predictability of pay.
- Uber stated that drivers in the UK earned over £1bn in the first quarter of this year and emphasized flexibility and transparency in earnings.
- Uber remains confident in its pricing model, but drivers feel less certain about their trip earnings.
- The study highlights how Uber's algorithmic changes have affected driver earnings and control over their work.
- Despite Uber's stance, drivers continue to face challenges in predicting trip earnings and maintaining control over their work.
- The findings raise questions about the fairness and transparency of Uber's pricing system.
- The ongoing debate between Uber and drivers underscores the complexities of gig economy work.
- Overall, the study sheds light on the impact of algorithmic changes on Uber drivers' pay and working conditions.
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