Drivers from the UK, the Netherlands, and other European countries have initiated a collective legal action against Uber, claiming the ride-hailing company’s artificial intelligence system for setting compensation and distributing work breaches data protection regulations. The case was filed in Amsterdam’s district court, where Uber maintains its European headquarters. According to the European Trade Union Confederation, this represents the first collective legal action of its kind.
At the center of the dispute is an opaque algorithmic system that uses driver information to calculate personalized pay rates for individual rides. Drivers contend the system systematically reduces their earnings by adjusting offers based on their acceptance patterns and behavior. Several drivers reported receiving different compensation for identical jobs, suspecting the algorithm identified their willingness to accept lower rates. Uber has attributed such differences to other system features including GPS positioning, surge pricing, and promotional testing.
The claim affects approximately 241,000 drivers across the EU and UK and alleges Uber unlawfully employed automated decision-making and profiling while setting dynamic pay and allocating work. It further contends the company improperly used driver data to train its AI systems in violation of GDPR regulations. Drivers claim the dynamic pay system has reduced their annual incomes by approximately £5,000 in the UK since 2023 and was introduced in the Netherlands earlier this year.
Uber disputes the allegations, stating its app uses real-time trip information rather than driver behavior to calculate fares. The company maintains that drivers view earnings and trip details before accepting assignments and that the majority of fares reach drivers’ accounts. A 2025 study by University of Oxford academics found substantial earnings reductions following the algorithm’s introduction, though Uber questioned its methodology. The Dutch data protection authority previously fined Uber €825m for deactivating driver accounts through automated systems without adequate notice.
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