New research reveals Uber's algorithmic pricing leaves drivers and passengers worse off
New research reveals Uber's algorithmic pricing leaves drivers and passengers worse off
A new study from researchers in the University of Oxford's Department of Computer Science has found that Uber's use of dynamic pricing has led to higher fares for passengers and lower earnings for drivers, while increasing Uber's share of revenue.
The study analyzed data from 258 UK Uber drivers over more than 1.5 million trips between 2016 and 2024. This revealed a significant shift when Uber introduced a dynamic pricing algorithm in 2023. Passengers now pay more per trip, but drivers' earnings have declined. Adjusted for inflation, drivers' hourly income fell from over £22 to just over £19 before operating costs, and drivers are spending more unpaid time waiting for rides than before. Uber's commission has risen from around 25% to 29% and in some cases, Uber took over half the value of the fare.
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Why would it work any differently? If there’s a way for the company to make more money off both and there’s no punishment for doing so, what’s the incentive for anything else?
Yeah, my first thought was this isn't news. This is literally reporting that someone is doing their job.
It sucks that the goal in capitalism is just more money. Unions are how labor gets stuff in capitalism. Even if they aren't perfect, dont hate the player, hate the game.
dont hate the player, hate the game.
Awful expression. If you're playing an abusive game on purpose, you're still being abusive. I'll hate both, thankyouverymuch.
Most people's pension funds invest in all the awful companies they like to complain about.
You can despise capitalism, but ultimately we still need to exist in a capitalist society.
Most people's pension funds invest in all the awful companies they like to complain about
Which is also bad for everyone who's not already rich, compared to old fashioned pensions NOT dependent on what is basically a casino with socialized losses and private gains for the already obscenely rich.
You can despise capitalism
Thanks for the permission, kind sir/madam/other 🫡
we still need to exist in a capitalist society.
Short term, yes. Probably medium term too. But long term, we CAN change the system into something much better than the global pyramid scheme we have going on now.
Capitalism isn't a law of nature. It's a choice, and an awful one at that.
More hippie than viking I see
Yeah, I'm viking by birth (born, raised, umpteenth generation Scandinavian) but am a far left anticapitalist and anti-authoritarian pacifist 😁
I hope you are able to convince the elders that dragons are our friends
You better believe it!
Thanks, I love it! ❤️
You can always drive for lyft
But are your customers on Lyft? It's no good getting 10% more per journey if you're doing half as many of them.
I assume most taxi drivers are on as many services as they can cram onto their phones anyway, hoping to cherry-pick any decent jobs.
When I drove Lyft in my area it was enough to be busy, but I wouldn't know now