Dynamic pay on platforms such as Uber should be banned, says TUC
Summary
The Trades Union Congress (TUC) has called for a ban on dynamic pricing in gig economy platforms like Uber, arguing it leaves workers unsure about their pay because algorithms set wages without clear explanations. The TUC report highlights how this practice can harm drivers’ incomes, health, and safety, and urges the UK government to strengthen worker rights and demand transparency in algorithm decisions.Key Facts
- Dynamic pricing means computer algorithms change pay and fares based on supply and demand at the moment.
- Uber switched to dynamic pricing in 2023, increasing its commission from 20% to 25% and then allowing pay and fares to vary.
- Workers describe dynamic pay as unpredictable, like gambling, with little information about how earnings are calculated.
- Several Uber drivers said their income dropped and felt below minimum wage after dynamic pricing began.
- The TUC report includes testimonies linking dynamic pricing to stress, poor family life, and driving tired, which may affect passenger safety.
- The University of Oxford found Uber drivers earned significantly less per hour after dynamic pricing started.
- The TUC and Worker Info Exchange want laws to give workers access to data used in AI decisions and to stop dynamic pay.
- Uber faces legal challenges in the UK and Europe over its use of algorithm-based pay systems.
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