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Uber started using ‘algorithmic pricing’ in Canada. Is that a good or bad thing? [Video]

Uber rolled out an AI-powered pay model this week in Ontario, a change drivers worry will cost them income — and consumer advocates say may lead to higher prices for passengers. 

And the change, which launched in B.C. in September, is raising questions in the industry about how ride-hailing and delivery companies use the data they collect as a form of power over their workers.

“Uber has found a way to take more money from us,” said George Wedge, an Uber driver in Toronto.

Compensation used to be based primarily on the time and distance of each ride and, in part, surge pricing, which was driven entirely by demand. The new system, however, uses an AI algorithm to calculate a driver’s pay using a host of other factors, like where a rider is picked up or dropped off or the day of the week.

The “upfront offers” system, which Uber …

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