Uber tests algorithm that changes US drivers' payments

The algorithm also raises the incentives for drivers to take short rides in an effort to attract more drivers. In Brazil, the second-largest market for the application and where inflation and the price of gasoline have been putting pressure on the earnings of partner drivers, it is already common to see drivers choosing shorter trips at peak times, source Latin America Business Stories (LABS) explains.

The changes, which are currently in pilot programmes, are part of a wide-ranging updates to Uber‘s driver pay algorithm and come at a time when the company is still trying to win back drivers who left at the start of the pandemic the news announcement continues. Fares paid by consumers are not affected.

Uber already has a similar programme in the US state of California, launched in the wake of a 2020 state battle over gig worker rights to prove its drivers are independent contractors. Uber said data from some cities with upfront pay have shown a 22% average increase in driver earnings for trips in which the distance to the pickup location is longer than the trip itself.