LONDON — The Trades Union Congress published a report in London calling on the UK government to end the practice of algorithmic dynamic pay for Uber drivers. The report, compiled alongside Worker Info Exchange and academics from Nottingham Trent's Work Futures Observatory, also urged ministers to strengthen employment rights and give workers and trade unions the right to access data collected by employers for artificial intelligence decision-making.

Uber introduced dynamic pricing in 2023, an algorithm that variably sets pay for drivers and fares for passengers. Under such systems, computer-driven algorithms set variable prices on gig economy platforms for customers and rates of commission for workers to match real-time supply and demand. Uber initially took a fixed 20% cut of UK fares, which subsequently rose to 25%.

The report compiled the testimonies of almost a dozen workers who described dynamic pay as "gambling" because pay felt like the outcome of chance rather than work. Several drivers said the system negatively affected their incomes, family life, and health, and that intense competition was forcing them to drive when tired, which could compromise passenger safety.

"It's too unfair. I want to smash my screen. It feels miserable," said Vladimir, an Uber driver based in London since 2016.

TUC general secretary Paul Nowak said the algorithmic system produced inconsistent outcomes for workers performing similar work. "Two drivers doing practically the same job at the same time could be paid wildly different sums determined by an algorithm. And when taking a job, they have seconds to decide whether it will be worth their time with patchy information," he said. "That's plainly unfair. This is a rigged system which overwhelmingly tilts the balance of power to platform company bosses over workers. Let's call this out for what it is: exploitation by the algorithm," Nowak said.

Uber has faced legal demands to stop using AI-driven pay systems in a case orchestrated by Worker Info Exchange on behalf of drivers in the UK, the Netherlands, and elsewhere in Europe. "The absence of basic worker rights has allowed dynamic pay to thrive. With no transparency over the conditions they work under, drivers have been forced to turn to data protection law as the only remaining route to assert their rights," said Cansu Safak, research lead at Worker Info Exchange.

A University of Oxford study published last year in partnership with Worker Info Exchange showed that many Uber drivers were earning substantially less per hour since Uber introduced dynamic pricing in 2023. Oxford researchers found that the introduction of algorithmically determined fees for passengers and pay for drivers coincided with Uber taking a higher share of fares.

An Uber spokesperson said drivers chose the company because it offered flexibility, good earnings, and benefits, and that Uber had always priced trips based on factors including time, distance, and demand. Drivers always see the destination and their prospective earnings before deciding whether to accept a trip, and all drivers receive a weekly summary of their earnings showing how much passengers paid and exactly what Uber and the driver received. The spokesperson said the vast majority of total fares continued to go to drivers and the amount Uber kept from fares had remained relatively flat.