Are Uber drivers losing out on their fare share?

Recent analysis of New York City rideshare data suggests that Uber drivers are taking home a smaller portion of each fare, even as their overall earnings have seen a slight increase.

According to the Obi Global Rideshare Report 2024, while the average earnings per ride have grown from $17.18 in 2019 to $18.54 in 2023, the percentage of each fare that ends up in drivers' pockets has declined. Uber drivers, who once earned 72.6% of a fare, now receive only 62.1%.

This reduction in share comes against a backdrop of rising costs for drivers, particularly with inflation and increasing fuel prices. Although the raw figures show a marginal increase in earnings, the larger share retained by Uber means that drivers are effectively seeing a reduced benefit from these higher fares.

In contrast, Lyft drivers have seen a slight improvement in their share, rising from 63.5% in 2019 to 64.2% in 2023. However, this change is minimal and does little to offset the broader challenges facing drivers in the industry.

The Obi report, which examines key trends in the rideshare market post-pandemic, highlights this shift as part of a wider pattern of industry changes. As competition intensifies and companies push for profitability, drivers may find themselves squeezed by the very platforms they rely on for income.

The report raises important questions about the future of driver earnings in an industry where operational costs are rising, but the share of earnings going to drivers appears to be on the decline.