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Uber AI Driver Pay Lawsuit Looms
19 Nov
Summary
- Legal action alleges Uber's AI breached data protection laws by varying driver pay.
- Drivers claim the algorithm significantly reduced their incomes since 2023.
- A lawsuit is expected in Amsterdam over the controversial dynamic pricing system.
Uber faces a proposed legal case alleging breaches of European data protection law concerning its AI-driven driver pay system. The Worker Info Exchange (WIE) sent a letter before action, asserting that the algorithm's variable pay rates have significantly reduced driver incomes since its introduction in 2023. This move follows research that indicated a decline in real earnings for drivers post-dynamic pricing.
The WIE plans to file collective proceedings in Amsterdam, seeking fairer pay and financial accountability from Uber. They argue that Uber trained its algorithms using drivers' personal data, which infringes on GDPR rights. Drivers are demanding a return to transparent pay-setting methods and compensation for losses.
Uber disputes these claims, defending its dynamic pricing system as a flexible and transparent model. The company stated that the research cited by WIE is inaccurate and relies on selective data, making its conclusions misleading. Despite Uber's stance, the WIE intends to pursue legal action if demands for compensation and cessation of current practices are not met.
