Uber drivers from the UK, the Netherlands and other European countries have launched a landmark legal action against Uber, alleging that the AI-powered algorithm the company uses to set pay and allocate jobs breaches data protection law and unfairly depresses their earnings. Drivers describe the system as a "black box" that learns their individual willingness to accept low fares and adjusts prices accordingly, leaving them feeling constantly monitored and unable to escape the arrangement. The case, filed at Amsterdam's district court where Uber has its European headquarters, is the first collective legal challenge of its kind against algorithmic pay-setting, according to the European Trade Union Confederation.

The compensation claim, which could run into billions of dollars, relates to roughly 241,000 drivers across the EU and UK and is being led by campaign group Worker Info Exchange, founded by James Farrar. It alleges Uber has unlawfully used automated decision-making and profiling to set pay dynamically since 2023 in the UK, cutting annual driver incomes by about £5,000, with the same system rolled out in the Netherlands this year; it also claims driver data was unlawfully used to train Uber's AI models, and seeks both damages and an injunction. The action follows a separate €825m fine imposed on Uber last month by the Dutch data protection authority over automated account deactivations, which Uber is appealing, while the company disputes that it adjusts prices based on individual driver behaviour and is separately preparing to roll out driverless cars across European cities.