Drivers in UK and Europe set to sue Uber for unfair pay set by algorithm
- Worker Info Exchange
- 12 hours ago
- 3 min read
On behalf of Uber drivers in the UK and Europe, Worker Info Exchange International (WIE International) has issued Uber a legal Letter Before Action, demanding the company halt the use of its AI-driven dynamic pay systems that have significantly reduced driver income since 2020. The legal letter, sent to Uber BV in Amsterdam and Uber Technologies Inc. in the USA, sets out claims that the company has breached data protection law, most importantly through the use of automated decision-making to set pay in real time by way of its so-called ‘Up Front Pricing’ systems. It is the first collective action in Europe that directly challenges dynamically set, personalised pay, determined through algorithmic decision-making.
In 2020, Uber introduced dynamic pay for its estimated 100,000 drivers in the UK, using opaque algorithms to determine rates and commissions in real time. Up Front Pricing replaced fixed rates for time, distance and commissions with variable rates set in real time by Uber’s algorithms. As a result, Uber’s profitability and share price has soared while driver pay has plummeted.
Research published this year and conducted by the University of Oxford in partnership with Worker Info Exchange found that:
82% of Uber’s UK drivers earn less per hour after dynamic pay was introduced.
The commission paid by drivers to Uber now often exceeds 50% of fares, compared to the previous flat rate of 25% before Up Front Pricing was introduced.
Dynamic pay algorithms have drastically reduced drivers' control over when, where and how long they have to work to make a living.
WIE International estimates that UK drivers lost between 8-16% in pay in the past year.
These findings point to an algorithmic pay model that personalises rates and undermines transparency, leaving many full-time drivers earning below the minimum wage on shift after expenses.
If Uber fails to comply with WIE International’s demands to cease these practices and compensate affected drivers, WIE International intends to bring collective proceedings before the Amsterdam District Court under the Netherlands’ collective redress law. By joining this collective action, UK, Dutch and other European drivers can unite to challenge Uber’s unlawful conduct and demand compensation for their losses. WIE International is investigating Uber’s pay systems across Europe and may expand the claim to include other countries in the future.
James Farrar, Chair of the Management Board of Worker Info Exchange International, said:
“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 this 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.
This case is not just about financial fairness, compensation and redress for Uber’s workers — it is about securing transparent, fair and safe working conditions for all platform workers.”
The claim
WIE International claims that Uber has breached the EU General Data Protection Regulation (GDPR) by:
The unlawful use of automated decision-making, including profiling, in Uber’s Up Front Pricing systems to dynamically set driver pay by algorithm, reducing their take-home pay.
Using drivers’ personal data and profiling to train the same algorithm, without their consent.
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 U.S. government surveillance.
If Uber fails to comply with the Letter Before Action, WIE International intends to issue collective proceedings before the Amsterdam District Court, seeking compensation for loss of income and non-material harm — including the stress and anxiety caused by algorithmic pay systems reliant on intrusive surveillance. WIE International will also seek an order to prevent Uber from continuing to deploy such technologies.
Next steps
WIE International is coordinating with drivers and trade unions to organise participation and ensure eligible drivers can join the collective claim.
The case is fully funded by independent third-party litigation funding provided by Innsworth Capital Limited; participating drivers pay no costs until they are awarded compensation.
About Worker Info Exchange International
Stichting WIE International is an independent non-profit foundation, that advocates for transparency and fairness in the use of data and artificial intelligence in the workplace. The foundation represents platform workers across Europe in matters of data protection and algorithmic accountability.
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