A new study has revealed a concerning disconnect in the gig economy: Uber fares have increased for riders, yet driver earnings have continued to decline.

The research, conducted by an independent labor economics group, analyzed trip data across major cities including New York, London, and Mumbai. It found that while passengers are paying more per ride compared to pre-pandemic levels, a larger share of the fare is being absorbed by Uber’s platform fees and other overhead costs, leaving drivers with a smaller cut.

In some cities, drivers now earn 15–25% less per mile than they did three years ago, despite inflation and rising fuel costs. The report warns that this trend is unsustainable for long-term driver retention.

“Drivers are doing more work for less pay, while the cost to consumers continues to climb,” said Dr. Laila Monroe, one of the study’s authors. “It raises questions about platform accountability and the future of gig work.”

Uber has defended its pricing model, stating that fare adjustments are based on dynamic market factors and that it continues to invest in driver incentives and support. However, advocacy groups are calling for greater transparency in fare breakdowns and regulatory oversight to ensure fair compensation.

As cities and governments grapple with how to regulate the gig economy, this study adds fuel to the growing debate over worker protections and equitable pay structures.