Uber Canada Launches 'Algorithmic Pricing'

 

Uber introduces AI-powered pay model in Ontario The new system uses an AI algorithm to calculate an Uber driver's salary using several factors such as where a rider is picked up from, where the destination is, days per week of travel, etc. The new system was first introduced in BC.

Questions have been raised about the use of data collected by ride-hailing and delivery companies as a form of power over their workers. Drivers are worried that they will lose income with the new change. In addition, consumer advocates say passengers may face higher fares for rides. An Uber driver in the province said Uber has found a way to charge them more.

Compensation is primarily based on the time and distance of each ride. In part, the rising rate is driven entirely by demand.

The 'upfront offers' system that Uber has been using in the US for two years still includes surge pricing. Passenger advocates say that the new pay model will harm passengers. It is said that exorbitant amount will be charged from the passengers. This is comparable to pricing airline or concert tickets.