Uber faces legal challenge over AI pay system

Uber has received a formal “letter before action” over its use of AI-driven pay systems, following claims that the technology has reduced driver earnings.

Worker Info Exchange (WIE), a non-profit group, sent this legal notice to Uber on November 19, alleging a breach of European data protection laws by varying pay rates with algorithms.

The proposed case may be filed in Amsterdam, where Uber is based in Europe.

WIE cited research with Oxford University showing many drivers earned less per hour after Uber introduced dynamic pricing algorithms in 2023.

The group says Uber’s system uses drivers’ historical data and is calling for a return to more transparent, human-involved pay-setting, and compensation for affected drivers.

Uber responded that drivers have flexibility and transparency over trips and earnings, and disputed the research as incomplete and selective.

WIE said it may bring collective proceedings before the Amsterdam district court under the Netherlands’ collective redress law if Uber does not comply.

🔗 Source: The Guardian

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