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Uber’s pricing algorithm is hurting both riders and drivers, Oxford study finds
- A study conducted by the University of Oxford revealed that Uber's pricing algorithm has resulted in higher costs for riders and decreased earnings for drivers.
- This research, led by Associate Professor Reuben Binns, analyzed data from 258 Uber drivers in the UK covering 1.5 million trips between 2016 and 2024.
- Following the implementation of Uber's dynamic pricing algorithm in 2023, customers are paying more for rides, while drivers are earning less per hour.
- Drivers' average hourly income dropped from over £22 to just over £19 after the algorithm change, despite increased waiting time between rides.
- Uber's commission, or “take rate,” has risen, with drivers sometimes earning less per minute even as fares increase.
- The study highlights a disparity between what riders pay and what drivers take home, with Uber taking a bigger cut from more expensive trips.
- The researchers express concerns about fairness and transparency in the gig economy, emphasizing the importance of understanding pricing algorithms that impact workers and consumers.
- These findings will be presented at the ACM Conference on Fairness, Accountability, and Transparency (FAccT 2025) later this month, aiming to address fairness issues in technology.
- The study suggests that Uber's pricing changes have not equally benefited both riders and drivers, raising questions about fairness and transparency in the gig economy.
- Drivers have experienced a decline in earnings per hour since the implementation of the new pricing algorithm, affecting their overall income.
- Uber's commission rate has increased, resulting in drivers earning less per minute, especially on higher-fare trips.
- The study by Oxford University highlights the impact of Uber's pricing system on both passengers and drivers, shedding light on the disparity in benefits between the two parties.
- Understanding the implications of pricing algorithms in the gig economy is crucial, given the significant number of individuals relying on platforms like Uber for income.
- The researchers stress the importance of addressing fairness and accountability in technology to ensure a more equitable system for all stakeholders.
- The findings of the study will be presented at the FAccT 2025 conference, aiming to drive discussions on creating a fairer tech environment for everyone.
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