According to the research. drivers influence Uber’s algorithm by logging out of the app at the very same time, giving it the reason that there is a lack of cars.
Uber increases its Fare rates when there is a huge demand for vehicles and a limited supply of drivers available. Fares are identified to grow during peak periods such as rush hour, during public events and late at evening. Surge pricing can increase the cost of trips to many times the normal rate.
The research said drivers have continued organizing forced dynamic pricing, after discussions with drivers in London and New York, and study on online panels such as Uberpeople.net. In a post on the website for drivers, observed by the researchers, one person said: “Guys, stay logged off until surge. Less supply high demand = surge.”
Responding to concerns that Uber might find that its drivers are managing its algorithm, the driver said: “They already know because it happens every week.”
The researchers told the collusion reveals driver dissatisfaction with Uber’s plans concerning them and exposes the “ethically questionable” nature of its algorithm.
“Drivers have improved practices to recover control, even gaming the system,” said Dr. Mareike Möhlmann, from the University of Warwick Business School. “It proves that the algorithmic control that Uber uses may not only be ethically problematic but may also hurt the company itself.”
It is not obvious how much influence the trick has had on prices. Uber disputed that the practice is widespread.
Uber said: “This action is neither public or permissible on the Uber app, and we have a plenty of technical safeguards in the position to prevent it from happening.”
The ride-hailing company has come under fire in the past over its dynamic pricing, which has flown during events including tube strikes but been excluded during taxi strikes.
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