A Columbia Business School study found Uber’s upfront pricing algorithm raised rider fares and cut driver pay on billions of US trips.
The US study showed Uber’s take rate climbed from about 32% to over 42% by the end of 2024.
A University of Oxford study in the UK found dynamic pricing increased the median take rate from 25% to 29%, with some trips exceeding 50%.
The pricing changes helped Uber generate $6.9bn in cash in 2024, reversing a $303m loss in 2022.
Uber argues its pricing algorithm is transparent, not personalised, and guarantees drivers at least the national living wage.
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