Uber’s new California commission caps only underscore the pricing opacity for drivers

In response to AB5, the new California labor law that makes it harder for employers to classify workers in the state as independent contractors, Uber in January capped its service fee on UberX rides in California at 25%. The fee cap is part of how Uber tells drivers it wants to “make the fare structure more straightforward so it’s clear where your earnings and fees come from.” But there’s still a lot about Uber pricing that drivers can’t see. Uber collects a “marketplace” fee, separate from the maximum 25% service fee, which means the total commission is a lot higher—some estimate the company’s “real commission” to be as high as 40%.