Uber drivers file landmark European class action over AI pay algorithm

This legal action marks the first collective move of its kind, according to the European Trade Union Confederation. It centers on how Uber's algorithm—described as a "black box"—processes driver data to set personalized rates, which drivers say forces fares down to the minimum they will accept. The case builds on previous scrutiny: last month, the Dutch data protection authority fined Uber €825m for deactivating accounts through automated systems, a decision Uber is appealing.

The lawsuit is led by the Worker Info Exchange, whose founder James Farrar previously secured a UK supreme court ruling that Uber drivers should have worker rights. Driver testimonies, like Mohammed Shirwa's in Rotterdam and Kola Oba's in London, illustrate fears of constant surveillance and exploitation. Uber maintains that dynamic pricing aims to boost earnings on less attractive trips and denies using acceptance history to personalize pay, though a 2025 Oxford study found substantial earnings cuts after the algorithm's introduction, a finding Uber disputes. As Uber also plans to roll out driverless cars in European cities, this case underscores broader questions about algorithmic management and accountability.