Drivers for Uber have filed a landmark collective compensation claim at Amsterdam’s district court alleging that a “soulless” algorithmic pay system breaches data protection laws and suppresses earnings. According to the European Trade Union Confederation, the lawsuit represents the first collective legal move of its kind against the San Francisco tech company, involving approximately 241,000 drivers across the European Union and the United Kingdom.
Amsterdam District Court Filing Targets Dynamic Pay and Automated Profiling
The legal action centers on a “black box” algorithm that processes driver data to set personalized rates for individual rides. According to the Worker Info Exchange campaign group leading the case, the system utilizes automated decision-making and profiling to push down fares to the minimum acceptable threshold for workers. The lawsuit seeks financial damages for affected drivers alongside an injunction to halt practices alleged to violate data regulations.
James Farrar, founder of the Worker Info Exchange, stated that the technology creates an intrusive environment that undermines worker dignity. “It’s bad enough that Uber’s dynamic pay algorithms have squeezed driver pay for years now but the intrusive and underhanded way in which Uber uses its technology to monitor and influence drivers’ behaviour is an affront to their dignity as workers and as human beings,” Farrar said. Dutch lawyer Anton Ekker, who is leading the litigation, added that computer algorithms should not independently make decisions that strip individuals of their livelihoods.
Driver Testimonies Detail Algorithmic Pay Discrepancies and Constant Surveillance
Drivers participating in the claim report living in constant fear of algorithmic management. Mohammed Shirwa, a 41-year-old Uber driver based in Rotterdam, described the system’s psychological toll. “It is like someone watching you all the time and knowing about your weakness – the boss is the algorithm,” Shirwa said. “All the time the algorithm is learning about you and what you are willing to accept. So the prices go low but you are stuck. It knows you need the job.”
In London, 48-year-old driver Kola Oba recounted an instance where he and another driver parked in Tottenham were offered different fares for the exact same job. Oba received an offer of £23, while his colleague was offered £27. Oba suspects the lower offer stemmed from his history of accepting cheaper fares, which he claims the artificial intelligence utilized against him. “It’s scary – they have all my information and they are using it against my own wellbeing,” Oba said. “It defines how much I earn, how long I have to work, my time with my family, my resting time.”
Earnings Impacts and Regulatory Scrutiny Across Europe
The lawsuit alleges that dynamic pay-setting systems operated in the UK since 2023, reducing annual driver incomes by approximately £5,000, while a similar rollout occurred in the Netherlands this year. Academic researchers at the University of Oxford published a 2025 study documenting substantial earnings cuts following the introduction of the dynamic algorithm. However, Uber criticized the research, stating that it relied on incomplete and selective data.
Regulatory pressure on the company has intensified concurrently. Last month, the Dutch data protection authority imposed an €825m (£708m) fine on Uber for deactivating driver accounts through automated systems without adequate notice. Uber announced plans to appeal that penalty. Meanwhile, the company is also planning to roll out driverless cars in European cities from London to Zagreb, initially with human supervisions.
Did You Know?
James Farrar, founder of the Worker Info Exchange, secured a UK supreme court ruling that Uber drivers should have worker rights.
Uber Categories and Rejection of Algorithmic Allegations
Uber has categorically rejected the allegations brought by the Worker Info Exchange and participating drivers. A company spokesperson maintained that fare calculations are based on real-time trip metrics rather than individual driver behavior histories. “The Uber app uses real-time information about the trip such as journey, duration and destination to calculate fares,” an Uber spokesperson said. “Drivers see their earnings and where a trip is going before they decide whether to accept it. The vast majority of total fares continue to go where they belong: into drivers’ pockets, and the percentage that Uber keeps from fares has remained relatively flat.”
The company further asserted that dynamic pricing is used to increase compensation on less attractive trips to enhance driver earning potential, denying that past rejections or acceptances personalize pay offers. Chief Executive Dara Khosrowshahi stated in 2023: “I think that what we can do better is targeting of different trips to different drivers based on their preferences or based on behavioural patterns that they’re showing us.”
Frequently Asked Questions
Where was the legal claim against Uber filed?
The collective compensation claim was filed at Amsterdam’s district court, where the San Francisco tech company has its European HQ.
How many drivers are involved in the lawsuit?
The legal action relates to about 241,000 drivers across the EU and the UK.
What specific regulations does the lawsuit claim Uber breached?
The claim alleges that Uber has unlawfully used automated decision-making, including profiling, in dynamically setting pay and allocating work, and unlawfully used driver data to train its AI models in breach of data regulations.
What is Uber’s response to the allegations?
Uber has categorically rejected the allegations, stating that it does not adjust the price offered for a trip based on an individual driver’s behaviour and that the app uses real-time information such as journey, duration, and destination to calculate fares.
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