Uber drivers launch European class action over ‘soulless’ and ‘scary’ AI algorithm

European ride-hailing giant Uber is facing a landmark legal challenge from thousands of its drivers over alleged privacy breaches and unfair pay practices. Drivers from the UK, the Netherlands and other countries have banded together to file a class action lawsuit, claiming the company's AI-powered pay-setting system is a "soulless" algorithm that pushes down their earnings.

The suit, filed at Amsterdam's district court, could result in billions of dollars in damages. If successful, it would be the first collective legal action of its kind in Europe, according to the European Trade Union Confederation. At the heart of the case is an opaque "black box" algorithm that sets individual pay rates for each ride based on a variety of factors, including data about the driver.

Drivers report being offered the same job at different pay rates and receiving lower fares for return trips after long journeys, suggesting the algorithm is learning about their willingness to accept lower prices. Mohammed Shirwa, a driver from Rotterdam, described the algorithm as "like someone watching you all the time and knowing about your weakness."

Kola Oba, a driver from London, likened it to an "algorithm that is soulless." Drivers are afraid the algorithm could reduce their earnings, affecting their time with family and rest periods. The lawsuit alleges that Uber's use of automated decision-making, including profiling, violates data protection laws such as the General Data Protection Regulation (GDPR).

It also claims the company unlawfully used driver data to train its AI models. The claim seeks damages for affected drivers and an injunction to halt the conduct. Uber has denied the allegations, stating that discrepancies in pay are due to other system features like GPS, surge pricing and promotions. The company's chief executive, Dara Khosrowshahi, admitted in 2023 that the algorithm targets trips based on driver preferences and behavior patterns.

However, Uber maintains it does not adjust prices based on individual driver behavior. The case is being led by the Worker Info Exchange, a campaign group that secured a UK supreme court ruling granting Uber drivers worker rights. Driver litigation leader Anton Ekker stressed that algorithms should not independently make decisions that strip individuals of their livelihood, emphasizing the need for accountability from online platforms.