Uber is facing legal pressure to discontinue its artificial intelligence-driven pay systems, which have reportedly led to a decline in driver earnings. The Worker Info Exchange (WIE), a nonprofit organization, sent a letter to the company alleging violations of European data protection laws due to the use of its controversial algorithm for setting pay rates.
James Farrar, WIE’s director, claimed that Uber has used AI in a manner that is both intrusive and exploitative, resulting in financial harm for many drivers. The organization intends to pursue legal action with the goal of securing fairer working conditions for drivers and holding Uber accountable for its alleged misuse of AI.
The legal case is anticipated to be filed in Amsterdam, where Uber’s European operations are based. This development follows WIE’s partnership with Oxford University, which recently published research indicating that many Uber drivers have been earning significantly less per hour since the rollout of a “dynamic pricing” algorithm in 2023. This algorithm adjusts driver payments and passenger fares based on demand, representing an evolution from earlier “surge pricing” models.
The Oxford study found that average hourly pay for drivers has stagnated and, in real terms, decreased following the implementation of dynamic pricing. WIE contends that Uber has trained its algorithms using the drivers’ own historical data, potentially breaching legal rights under the General Data Protection Regulation (GDPR). The organization is seeking to have Uber revert to a more transparent pay-setting process.
In response, an Uber spokesperson stated that drivers choose the platform for its flexibility and transparency regarding earnings. They criticized the WIE’s research, suggesting that it relies on incomplete data and lacks clarity on the effects of dynamic pricing on driver pay. WIE has indicated that if Uber does not comply with their requests to halt these practices and compensate affected drivers, they will pursue collective legal proceedings in the Netherlands.
Source: https://www.theguardian.com/technology/2025/nov/19/uber-lawsuit-ai-driven-pay-systems