Companies like Uber and Amazon have been utilizing Artificial Intelligence (AI), in order to pay people different wages for similar work, a new study conducted by Veena Dubal, a law professor from the University of California Hastings has revealed. Dubal’s research drew upon observations of hundreds of Uber and Lyft drivers over an extensive period of six years, and showed that these companies have collecting vast amounts of data on the contract workers using their platforms. This data includes what time the workers are working, how much they are getting paid, and the duration of their past jobs, and with the help of this data, these companies are able to calculate the payment rates necessary to induce behaviour; this practice is being called “algorithmic wage discrimination” by Dubal.
Moreover, the AI system might even offer a driver, who tends to work until they hit a certain daily mark, a lower pay rate than another driver in the same situation. This, as described by Dubal, is the “gamblification of work,” faced by many gig workers. Domingo, an Uber driver, faced the same situation when he was short for one ride for a $100 bonus. He mentioned that it sometime feels like the algorithm is working against the workers and that it, “literally feels like you’re being punished by some unknown spiteful God.”
Dubal notes that these practices of artificially changing wage rates have the potential to spread in other sectors, and to mitigate the issue, there must be a ban on the use of algorithms and AI to set wages. When asked for a comment, Uber spokesperson, Zahid Arab, argued that the “central premise” of Dubal’s paper was wrong and denied the allegations of tailored individual fares being offered. On the other hand, Amazon flex and its delivery partners mentioned the competitive earnings of up to $26 per hour and gave positive feedback regarding the program. Lyft, however, did not respond to requests for comment.
Uber, founded in 2009, is an American company which offers transportation, food delivery and payment solutions. It has become a giant in the transportation technology field, with operations in more than 900 metropolitan areas and around 75 million customers as of 2020.
Veena Dubal is a professor of law at the University of California and was the lead researcher for this new study. She has been studying labour, inequality, and technology for more than a decade and her research has been mentioned in multiple publications, including the Social Science Research Network and the Columbia Law Review. She capped her research on algorithmic wage discrimination with the suggestion that the federal government takes a closer look at this issue.
