Technology6/19/2025The Guardian

Rough ride: how Uber quietly took more of your fare with its algorithm change

Rough ride: how Uber quietly took more of your fare with its algorithm change

The article discusses Uber's changes to its algorithm, which have resulted in the company taking a larger portion of the fares paid by passengers. Uber's "take rate" – the percentage of the fare that Uber keeps – has sometimes reached more than 50%, significantly cutting into drivers' earnings. The article highlights the case of Abdurzak Hadi, an Uber driver who was part of a group that sued the company in 2015, seeking to be recognized as employees rather than independent contractors. While the drivers won their case, confirming their entitlement to the legal minimum wage, Uber's insistence on classifying them as contractors meant the case went all the way to the Supreme Court, where the drivers eventually prevailed in 2021. The article suggests that Uber's algorithm changes and its treatment of drivers as independent contractors have allowed the company to quietly take a larger share of the fares, negatively impacting the earnings of its drivers.

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Source: The GuardianAI-generated summary
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