The Game is Rigged - Algorithmic Pay Discrimination in Rideshare

Drivers have been saying for years what our number one problem is - pay. We drive hundreds of miles a day, providing service to our customers across our cities, but year after year we see less and less in return for the hard work we put in. Why? In a new video from More Perfect Union, we take a peek at the algorithms that control our behavior, and most importantly, our pay.

The video, featuring Sergio Avedian from the Rideshare Guy, runs an experiment with 7 drivers from the Los Angeles area. They test to see if drivers are offered different rates for the same exact rides. Factoring in being in the same place, they all start to receive the same ride requests -  and what they find is shocking. 63% of the time there was a pay discrepancy with one or more of the drivers being offered less money than the others to provide exactly the same ride. This is the influence of upfront pricing or dynamic pricing. Instead of a rate card, which dictates the minimum a driver can make per mile and per minute, dynamic pricing takes in a number of factors to guess what is the lowest amount of money Lyft or Uber can offer to get a driver to take that ride. It doesn’t take into consideration expenses or time, just looking for the lowest bidder, even if the fare leaves the driver in the red once mileage and costs are taken into account. While originally denying it, Uber admits that our pay is dictated by an algorithm, based on monitoring all the data available to them about us.  

Since implementing upfront pricing in 2022, both Lyft and Uber have started to show a profit. And we know exactly where this profit has come from - at our expense! For most of our rides we’re getting 50% or less of what the passenger paid, and many drivers show receipts where they are receiving as little at 15-20%. By using dynamic pricing, Lyft and Uber have created a system of Algorithmic pay discrimination - pay that is tailored to the individual, not based on miles, minutes, skills, or type of vehicle - and it ensures the companies always profit, even while we barely make enough to survive. 

Drivers in Los Angeles, including Sergio from the Rideshare Guy, gather to compare rides in the More Perfect Union Video: We Put 7 Uber Drivers in One Room. What We Found Will Shock You.

How can this be right? How can we allow companies to base their pay model on this kind of exploitation? As misclassified workers under Prop 22, we lack rules that would protect us from this kind of baldfaced exploitation. Drivers need protections, now more than ever, including common sense regulations that ensure that no workers' pay can be dictated by a robot whose only goal is to ensure large profits for the companies. We need the dignity of a rate card and the right to negotiate our fares to ensure that we’re solvent and making not just enough to keep our head above water, but enough to live with dignity. Dynamic pricing is a rigged game, and we must fight for something better.