AI incident #203 ·

Uber Launched Opaque Algorithm That Changes Drivers' Payments in the US

Open on the AI Incident Database 3 news reports Synced from the AIID API · record last edited 5 Sep 2026

What happened

Uber launched a new but opaque algorithm to determine drivers' pay in the US which allegedly caused drivers to experience lower fares, confusing fare drops, and a decrease in rides.

Only the incident metadata is stored here. The underlying news reports are on the AI Incident Database (CC BY-SA 4.0); use the links above to read them.

News reports (3)

Coverage catalogued by the AI Incident Database. Titles link to the original publisher; the text is not reproduced here.

Who was involved

Alleged deployer
Uber
On AIID: Uber
Alleged developer
Uber
On AIID: Uber
Alleged harmed party
Uber drivers
On AIID: Uber drivers

AI systems implicated

Algorithmic management systems

Classification (MIT AI Risk Repository taxonomy)

Causal entity
AI
Intent
Intentional
Timing
Post-deployment
Harm level
Sectors
Countries

Risk entries describing this failure mode

Entries from the MIT AI Risk Repository coded to subdomain 7.4.

  • Intelligibility

    "How can we build agent’s whose decisions we can understand? Con- nects explainable decisions (Berkeley) and informed oversight (MIRI)."

    AGI Safety Literature Review (Everitt2018 )

  • Attributing the responsibility for AI's failures

    "This section, constituting almost 8% of the articles, addresses the implications arising from AI acting and learning without direct human supervision, encompassing two main issues: a responsibility gap and AI's moral st...

    What Ethics Can Say on Artificial Intelligence: Insights from a Systematic Literature Review (Giarmoleo2024)

  • Model Evaluations (Interpretability/Explainability)

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • Model outputs inconsistent with chain-of-thought reasoning

    "Chain-of-thought reasoning is sometimes employed to get a better understanding of the model’s output, where it encourages transparent reasoning in text form. However, in some cases, this reasoning is not consistent with...

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • Lack of understanding of in-context learning in language models

    "In-context learning allows the model to learn a new task or improve its perfor- mance by providing examples in the prompt, without changing its weights [101]. Even though this technique is highly effective, its working...

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • General Evaluations (Difficulty of identification and measurement of capabilities)

    "The capabilities of general-purpose AI systems can be difficult to measure, compared to the capabilities of more limited and fixed-purpose AI systems. This is in part due to a broader distribution of potential risks, a...

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • Lack of transparency and interpretability

    "Today's Frontier AI is difficult to interpret and lacks transparency. Contextual understanding of the training data is not explicitly embedded within these models. They can fail to capture perspectives of underrepresent...

    Future Risks of Frontier AI (GOS2023)

  • Opacity (the black box problem)

    "Opacity surrounding the technical, internal decision-making processes of generative AI models is popularly known as the “black box problem.”277 Generative AI models, most ubiquitously built on deep neural networks with...

    Regulating under Uncertainty: Governance Options for Generative AI (G'sell2024)

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