Study Finds Uber's Take Rate Has Risen Above 50% in Some Cities
A Columbia Business School analysis of three drivers' trip histories found that Uber now keeps more than 50% of ride fares in some cities, up from 15-20% a decade ago. The study examined nearly 50,000 trips across Dallas, Miami, and Tampa over nine years, showing a significant shift in how Uber's revenue is split between the company and drivers. The finding highlights growing driver concerns about earnings and raises questions about the sustainability of gig work economics.
According to a new study by Len Sherman, an executive in residence at Columbia Business School, Uber's "take rate"—the percentage of each fare the company retains—has risen above 50% in some cities as of 2025, compared to 15-20% approximately a decade ago. The analysis examined nine years of ride-hailing data from three Uber drivers in different cities who collectively completed about 50,000 trips. Sherman found that the divergence between rider fares and driver payouts became particularly pronounced in 2022 after Uber implemented upfront pricing, which sets fares and payouts individually for each trip. Uber disputed the findings in a January blog post, stating it kept an average of 21% of fares in the third quarter of 2025. The study underscores why many drivers report declining earnings and provides concrete data for regulators and riders to evaluate Uber's business model, though the research was limited to three drivers and did not compare take rates at competing ride-hailing services.
What's missing
The study's limitations include its small sample size (three drivers) and geographic scope (three cities), which may not be representative of Uber's operations nationwide or globally. Additionally, the analysis does not account for variations in trip types, surge pricing frequency, or driver acceptance rates, which could affect the take rate calculation. Comparison data from other ride-hailing companies like Lyft is absent, making it difficult to contextualize whether Uber's take rate is an industry-wide trend or company-specific.
What different sources said
- Business InsiderLeft
Uber now keeps most of the fare from your ride in some cities, according to a new driver study
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