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Second study finds Uber used opaque algorithm to dramatically boost profits


US academics say computer code systematically raised fares at expense of drivers and passengers

Research by academics at New York’s Columbia Business School concluded that the Silicon Valley company had implemented “algorithmic price discrimination” that had raised “rider fares and cut driver pay on billions of … trips, systematically, selectively, and opaquely”. The British study found that many UK Uber drivers were making “substantially less” each hour since the ride-hailing app introduced a “dynamic pricing” algorithm in 2023 that coincided with the company taking a significantly higher share of fares. Upfront pricing gives riders clarity before they book and allows drivers to make informed decisions based on full visibility into pay, distance, and expected duration.

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