Mass claim: Uber's AI-driven pay system cut drivers' income while boosting profits

Uber drivers in the Netherlands and the United Kingdom are filing a mass claim against the tech company over its AI-driven dynamic pay system. Since Uber implemented the system in 2020, drivers’ income fell, while Uber’s commission on the same rides increased significantly.

The NGO Worker Info Exchange International (WIE International) is initiating the mass claim on behalf of the drivers. An estimated 10,000 drivers in the Netherlands fall under Uber’s dynamic pay system, in which opaque algorithms determine rates and commissions in real time, instead of the fixed rates for time, distance, and commission previously used.

Research by Oxford University and the WIE found that 82 percent of Uber drivers in the U.K. earned less per hour since the introduction of the dynamic pay system. “Similar patterns are expected in the Netherlands,” WIE said. At the same time, the commission drivers pay to Uber increased from roughly 25 to 29 percent on average. “On some trips Uber retains 50% or more.” Drivers’ pay also became less predictable, and inequality among drivers increased, WIE said.

According to WIE, Uber’s dynamic pay system violates Article 22 of the EU General Data Protection Regulation (GDPR). This law gives Uber drivers the right not to be subject to decisions based solely on automated decision-making, which is what the algorithm behind the dynamic pay system is doing, the organization argues.

The NGO also pointed out that Uber is not transparent about how the algorithm works and used historical driver data to train it. “This is not only unfair, we believe it is unlawful, and drivers are entitled to compensation,” WIE said.

The organization also wants drivers compensated for a previous finding that Uber unlawfully transferred driver data to the United States between 2021 and 2023.