Mon. Dec 1st, 2025

Legal Demands Target Uber’s Algorithmic Driver Compensation

Legal Demands Target Uber's Algorithmic Driver Compensation
Legal Demands Target Uber's Algorithmic Driver Compensation

Uber is currently facing legal demands to cease the use of its artificial intelligence-driven pay systems. These demands stem from allegations that the systems have led to significantly reduced incomes for the company's drivers. Research published by Oxford University in partnership with the WIE found that many Uber drivers have been earning "substantially less" per hour, while Uber has taken a "significantly higher share of fares," since the introduction of a "dynamic pricing" algorithm in 2023. This algorithm variably sets driver pay and passenger fares, building upon its earlier "surge pricing" model. The WIE further alleges that the "legal harm" related to driver pay began in 2020 with "upfront pricing." Uber stated that "thousands of drivers continue to make the positive choice to work on Uber as passenger demand and trips continue to grow."

Source: https://www.theguardian.com/technology/2025/nov/19/uber-lawsuit-ai-driven-pay-systems

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