Uber Plays Algorithm Roulette With Driver Pay

March 25, 2022

A fuel surcharge which is in the $0.50 range may not keep Uber drivers in the chips. Uber remains a major player in the gig economy. Some of their drivers love the flexibility, while others are fed up with how the company treats them. Uber is a revolutionary company that flipped the transportation industry on its head. The drive share company is about to do it again, reports the Markup in, “Secretive Algorithm Will Determine Uber Pay In Many Cities.”

Uber released a new feature called “Upfront Fares” that allows user to pay an upfront fee for rides. It replaces fees that are based on trips’ time and distance. An algorithm relies on several factors to determine the upfront fare. Uber explains it offers drivers more transparency, because it allows them to see the fare, drop-off, and pick-up locations. Drivers have asked for the this information, especially since locations are not revealed until they accept a job.

Since the change, drivers say they have seen lower earnings. Before the new feature, drivers could calculate fares. It appears that Uber is shaving more off the top from drivers. Other gig economy companies like Instacart, DoorDash, and Shipt instituted pay algorithms and their pay has steadily declined. Gig economy companies could purposely be doing this to confuse workers and take more money:

“The more opaque the fare calculations, the more drivers, regulators, and the public have a hard time holding the gig companies accountable to fair and transparent pay standards, said Amos Toh, a senior researcher for Human Rights Watch who studies the effects of artificial intelligence and algorithms on gig work.”

The gig economy is beneficial to many, but it has a downside. Workers can easily be exploited and based on their contracts they have little recourse. No matter the company, workers should be paid a decent wage with transparency on how it is determined.

Whitney Grace, March 25, 2022

Written by Stephen E. Arnold · Filed Under Business strategy, Management, News

Comments

Comments are closed.

Search the site
Subscribe to Beyond Search
Feature archive
News archive

Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.