Uber’s take – A new analysis using nine years of Uber ride data suggests Uber’s “take rate” has climbed above 50% in some cities—more than double what the company took a decade ago. Uber says the study overstates its share and points to a much lower average take rate in the
More than half of a ride fare is going to Uber in some cities, according to an analysis of Uber’s own data—an outcome that drivers say helps explain why it’s become harder to make money from gig work.
The study says Uber’s “take rate. ” the percentage of each fare the company keeps. has risen above 50% this year in certain cities. The estimate comes from Len Sherman. an executive in residence and adjunct professor at Columbia Business School. who is explicit about why the numbers matter for driver earnings and the broader debate over how Uber prices trips.
Sherman found Uber’s share of each fare was far smaller about a decade ago, when Uber took about 15% to 20% of each fare. Uber does not regularly report its take rate.
Sherman’s analysis drew on nine years of ride-hailing data collected for three Uber drivers operating in three different markets: Dallas. Miami. and Tampa. Together, the drivers completed about 50,000 Uber trips over that period. The drivers requested and received the information from Uber. and all used the earnings analysis app GigU. which connected them to Sherman.
The study’s central claim is that the relationship between what riders pay and what drivers receive has changed. About 10 years ago. Sherman wrote. Uber took no more than 20% of each fare. and payouts to drivers moved in lockstep with passenger fares. That link began to diverge in 2019, when Uber cut driver payouts. The decoupling became especially pronounced in 2022. after Uber began using upfront pricing—an approach that sets fares and payouts individually for each trip rather than charging a set amount based on time or distance.
In his report, Sherman also argues Uber’s take rate is higher than that of other digital marketplaces. Secondhand marketplaces such as eBay and Etsy say they keep between 10% and 15% of each sale. The study does not examine take rates at other ride-hailing companies such as Lyft. and the companies don’t regularly disclose that figure.
Sherman says Uber’s algorithms price trips and determine payouts based on market conditions, allowing Uber to increase its average share of each ride. He also says it isn’t always clear to drivers and riders how that share changes.
“This is still the profit engine for Uber,” Sherman told Business Insider last week, describing the growing take rate as the driver of Uber’s expansion into new verticals, including hotel bookings.
Uber, however, pushed back on Sherman’s earlier estimates. In a January blog post. Uber said it kept 21% of each fare on average in the third quarter of 2025—less than half of what Sherman estimated. In that same blog post. Uber called it “false” that Uber became profitable by raising prices while taking an ever larger share of the pie.
Uber’s financial picture also sits behind the dispute. Uber’s ride-hailing business is its largest and most profitable segment, with gross bookings growing 18% to $29.7 billion in 2025. That segment accounted for roughly 90% of its adjusted earnings before interest. taxes. depreciation. and amortization—its measure of profitability—for the year.
The drivers’ work patterns also varied during the nine-year window: one driver took nearly two years off from driving after the start of the pandemic, for instance. Still, Sherman said a similar pattern emerged for each driver, even across different markets and different times entering gig work.
Sherman’s report ends on a question that now lands in the hands of riders, drivers, and regulators. He wrote: “Whether Uber gets to stay there is now a question for riders, drivers, and regulators who, at long last, have the numbers in hand to consider their choices.”
Uber take rate gig economy ride-hailing Uber drivers upfront pricing Dara Khosrowshahi Len Sherman GigU Dallas Miami Tampa hotel bookings digital marketplaces