Workers are having their wages cut by new “dynamic pay” schemes, unions and academics have warned.
The practice of surge pricing came under fire after firms used demand to drive up the cost of Oasis reunion tickets. Some gig-economy workers, including Uber drivers and Deliveroo workers, are having their own problems with surge pricing, because their pay is adjusted based on real-time demand.
The pay models are based on algorithms. Instead of receiving a predictable, formula-based fee per task, workers are being offered personalised payments for each job.
A University of Oxford study published in June found that Uber’s “dynamic pay” system, introduced in 2023 and which alters pay as well as passenger fares, is cutting driver earnings on higher-value trips.
Unlike the familiar surge pricing that bumps up fares during busy times to get more drivers on the road, the “dynamic” system also tweaks how the fare is split, often meaning Uber takes a bigger cut and drivers end up with less.
