TUC Calls for Ban on Dynamic Pricing for Gig Economy Workers on Platforms Like Uber

The Trades Union Congress (TUC) has called for a ban on dynamic pricing used to set pay on gig economy platforms, including Uber, according to a report it published. The report states that dynamic pricing leaves workers without certainty over their earnings due to algorithms that adjust pay based on real-time supply and demand.

Under this system, platforms use computer-driven algorithms to set variable prices for customers and commission rates for workers. The TUC report indicates that pay has become decoupled from time, skill, or effort, turning work into a speculative practice with limited transparency in the algorithmic process.

The report includes testimonies from nearly a dozen workers who described their earnings as feeling like gambling, leaving it to fate, or waiting for the jackpot, because outcomes seemed based on chance rather than work. It was compiled with the non-profit campaign group Worker Info Exchange (WIE) and academics from Nottingham Trent’s Work Futures Observatory.

Among the case studies, several Uber drivers reported that dynamic pricing negatively affected their incomes, family life, and health. They also stated that passenger safety could be compromised as competition pressured them to drive while tired, and some felt their earnings were below the minimum wage.

Vladimir, a London-based Uber driver who has worked for the platform since 2016, said his income had fallen due to dynamic pricing. He described the shift from 100% transparency to 0% transparency, with fares, commissions, and driver pay becoming flexible.

>"It’s too unfair. This algorithm variably sets pay for drivers and fares for passengers. A University of Oxford study from last year found that many Uber drivers earned substantially less per hour after the introduction of dynamic pricing in 2023. The study, published in partnership with WIE, also noted that the company took a higher share of fares following the change.

Paul Nowak, the TUC general secretary, stated that two drivers doing similar jobs at the same time could receive different pay determined by an algorithm. He added that drivers have seconds to decide on jobs with limited information. Cansu Safak, the research lead at WIE, said the absence of basic worker rights has allowed dynamic pay to thrive, leading drivers to use data protection law to assert rights.

The TUC report urges the UK government to end dynamic pay and strengthen employment rights, including giving workers and unions access to employer-collected data for AI decision-making. Uber has faced legal challenges organized by WIE to stop using AI-driven pay systems in the UK, the Netherlands, and other European countries.

An Uber spokesperson said drivers choose the company for its flexibility, earnings, and benefits. The spokesperson added that trips are priced based on time, distance, and demand, with drivers seeing the destination and earnings before accepting. Drivers receive weekly earnings summaries showing passenger payments and shares received by Uber and the driver.

The UK government was approached for comment but has not responded as of the report's publication.