Innsworth funds landmark European challenge to Uber’s algorithmic pay systems

Innsworth Capital has agreed to finance a major collective action against Uber over its AI based dynamic pay systems, positioning the funder at the centre of what could become Europe’s first large scale test of algorithmic wage setting under the EU General Data Protection Regulation (GDPR). The funded claim, brought by Worker Info Exchange International (WIE), challenges Uber’s Up Front Pricing model, introduced in 2020 for an estimated 100,000 UK drivers and since expanded across Europe.

The Letter Before Action sent to Uber BV in Amsterdam and Uber Technologies Inc. alleges that Uber uses opaque algorithms to adjust rates and commissions in real time, significantly reducing take home income while limiting drivers’ ability to choose when and where to work. Research published by the University of Oxford with WIE found that 82% of UK drivers earn less today under dynamic pricing, commissions often exceed 50% of fares compared to the historic 25% flat rate, and drivers lost between 8 and 16% in pay in the past year alone.

WIE asserts that Uber’s practices violate the GDPR by relying on automated decision-making and profiling to set personalised pay, using driver data to train those algorithms without consent, and transferring European driver data to the United States between 2021 and 2023 without a lawful basis. The organisation argues that these practices expose workers to opaque economic harm and potential surveillance risks while undermining the transparency protections embedded in EU data law.

If Uber does not halt the challenged systems and compensate affected drivers, WIE plans to file collective proceedings in the Amsterdam District Court under the Netherlands’ collective redress framework and may expand the litigation to additional European jurisdictions as its investigation progresses. With Innsworth’s funding in place, WIE is coordinating with drivers and unions across the UK and Europe to build participation in what it characterises as a pivotal test of algorithmic accountability in platform work.