Two significant studies have accused Uber of using complex algorithms to boost profits at the expense of drivers and passengers. Research from Columbia Business School indicates that Uber's algorithmic price discrimination raises rider fares while cutting driver pay, with findings drawn from a large dataset of trips. This follows a similar study from the University of Oxford, which found that UK drivers earned less after the introduction of a dynamic pricing algorithm in 2023. Experts express concerns about the lack of transparency in these pricing models and their financial implications for users.
The introduction of algorithmic price discrimination has resulted in significantly higher fares for riders while also reducing the overall compensation for drivers on billions of trips.
Uber's implementation of upfront pricing has drawn criticism for increasing rider costs, lowering driver earnings, and allowing the company to significantly improve its cashflow.
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