Uber faces legal action over use of its AI-driven dynamic pay systems

Uber is facing a proposed collective legal action over the use of its AI-driven pay systems with the non-profit foundation alleging that it lacks transparency and breaches data protection laws.

The Worker Info Exchange (WIE) international, a non-profit foundation, has issued a legal letter before action to Uber BV in Amsterdam and Uber Technologies Inc. in the USA, on behalf of drivers in the UK and Europe.

It also noted that it was also investigating Uber’s pay systems across Europe and may expand the claim to include other countries in the future.

Stating that it is not just the case about financial fairness, compensation and redress for Uber’s workers, the foundation added, "It is about securing transparent, fair and safe working conditions for all platform workers.”

James Farrar, the Chair of Management Board of Workers, Info Exchange International, stated that Uber has leveraged artificial intelligence and machine learning to implement deeply intrusive and exploitative pay-setting systems that have damaged the livelihoods of thousands of drivers.

“Through collective action, we intend to get a fairer deal for drivers and ensure Uber is held financially accountable for the harm caused by this unlawful use of AI.”

WIE international also alleged that Uber has breached the EU General Data Protection Regulation (GDPR) by the unlawful transfer of driver data from Europe to the United States between August 2021 and November 2023 — unlawfully exposing personal data to risk of unauthorised access and US government surveillance.

“The company is using drivers’ personal data and profiling to train the same algorithm, without their consent,” WIE claimed.

The transparency and fairness advocacy group warned that they intend to bring collective proceedings before the Amsterdam District Court under the Netherlands’ collective redress law if Uber fails to comply with demands to cease these practices and compensate affected drivers.

WIE stated that the research conducted by the University of Oxford in partnership with the foundation revealed that 82% of Uber’s UK drivers are earning less per hour after dynamic pay was introduced, and they lost between 8–16% in pay in the past year.