Uber driver pay is falling as the company’s take rate rises, new research finds

Uber's "take rate," the percentage of the fare kept by the company, has risen to over 50% in the U.S., according to research by Columbia Business School professor Len Sherman. Sherman unveiled his findings, based on data from three experienced Uber drivers, at the Web Summit Rio conference. The research indicates that prior to Uber's 2019 initial public offering, driver earnings were closely aligned with rider fares, with drivers retaining 80% to 85% of the fare. However, following the pandemic and Uber's 2022 introduction of "upfront fare" pricing, driver shares have decreased to below 50%. This shift contrasts with Apple's 30% commission on many App Store transactions. Similar findings were reported by Consumer Reports, citing analysis from Princeton's Workers Algorithm Observatory, which calculated Uber's take rate at 44% and Lyft's at 52% based on ride-hail data from Oregon. The research also highlights that government intervention, such as the minimum pay rate settlement negotiated in 2024 by Massachusetts Attorney General Andrea Joy Campbell, can influence driver compensation, with GigU estimating increased per-mile earnings in such cases.