Uber drivers in the UK, France, Germany, the Netherlands, Belgium, Poland, and Romania have filed a collective legal action against Uber at the Amsterdam District Court. The lawsuit, led by the non-profit organization Worker Info Exchange International (WIE), alleges that Uber's AI-driven "Upfront Pricing" system unlawfully uses automated decision-making and profiling to set driver pay and allocate work. Drivers contend that this system breaches the EU's General Data Protection Regulation (GDPR) and has led to a significant decrease in their earnings.
The legal challenge, filed on September 1, claims Uber's algorithm uses drivers' personal data to train pricing models that reduce income while maintaining an opaque process. Since Uber shifted to dynamic pay systems around 2020, some drivers report that the company's commission has exceeded 50% on certain trips, compared to a previous flat rate of 25%. Independent analysis commissioned by WIE indicates that UK drivers have lost an average of £5,337 per year since the pricing changes, with cumulative losses potentially reaching £26,239 per driver by 2026.
Drivers describe living in "constant fear" of the algorithm, which they characterize as "soulless." They allege the system personalizes pay rates by learning individual drivers' acceptance and rejection histories, leading to varying offers for the same trip. For example, one driver in North London reported being offered £23 for a journey, while a colleague received £27 for the identical trip. Drivers suspect the algorithm calculates the minimum they are willing to accept, exploiting situations such as the need for a return journey after a long trip.
James Farrar, director of Worker Info Exchange, stated that a computer algorithm should not independently make decisions that affect individuals' livelihoods. He added that Uber's use of technology to monitor and influence drivers' behavior is an "affront to their dignity." The lawsuit also claims that Uber unlawfully transferred driver data from Europe to the United States between August 2021 and November 2023, which could result in fines up to 4% of Uber's global revenue under GDPR.
Uber has denied the allegations. A company spokesperson stated that Uber has not yet seen the claim but "categorically rejects" the allegations. Uber maintains that its app uses real-time information such as journey details, duration, and destination to calculate fares, and that drivers see their earnings and destination before accepting a trip. The company asserts that it does not adjust trip prices based on individual driver behavior, nor does it use a history of accepted or rejected trips to personalize pay offers. Instead, Uber claims its dynamic pricing system aims to increase pay for less attractive trips, thereby enhancing a driver's earning potential.
The Amsterdam District Court holds jurisdiction over the case because Uber's European headquarters and data-processing operations are located in the Netherlands. This legal action follows a July 9 parallel class action filed in California, which raised similar concerns about wage suppression through driver surveillance. In August, the Dutch Data Protection Authority fined Uber €825 million for allowing algorithms to automatically ban driver accounts between 2018 and 2022 without human review, a decision Uber plans to appeal. The current European class action seeks damages for affected drivers and an injunction to halt the alleged unlawful conduct. The court is expected to hear the case in early 2027.