Dan Ocampo
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danocampo.bsky.social
Dan Ocampo
@danocampo.bsky.social
400 followers 740 following 85 posts
Labor & employment law, gig workers, economics & finance. Long-suffering Spurs fan. Here to learn something new
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Surveillance pricing is here. Airlines like Delta are following the Uber playbook: using AI to set individualized prices, maximizing the value they can extract from each consumer based on personal data they collect.
“Exploitation phase.”

That’s what the company behind Delta’s new AI pricing tool calls the part where it figures out exactly how much it can squeeze out of every consumer.

Surveillance pricing is here — and it’s being praised as the “The Holy Grail” for pricing schemes.
Here’s what I had to say about the bills at the city council back in December:

s27147.pcdn.co/app/uploads/...
It builds on the success of the food delivery worker minimum pay standard, which increased wages to $19.78 an hour—while NYC’s app delivery industry continues to thrive.
The landmark package of bills passed by the City Council would ensure better pay transparency, safeguard worker tips, and extend the city’s nation-leading minimum pay rate to include grocery and package delivery workers for companies like Instacart and Amazon Flex.
Proud to stand alongside my friends at Los Deliveristas Unidos yesterday to celebrate another major victory for New York City’s delivery workers.
6/ In sum, Uber is using its AI algorithms to squeeze more value out of workers, while drivers are earning less and their working conditions are worse.

It's one example of the "enshittification" of work from AI and surveillance capitalism--and it's a story that won't stop with Uber.
5/ Working conditions are also worse. Drivers now spend more time waiting for trips than carrying passengers, and pay is much less predictable. This forces them to organize their lives around an algorithm without knowing what they'll earn.
4/ Uber is also capturing much more "surplus value" (the revenue generated per on-trip driver hour minus labor cost) with dynamic pricing, mostly by taking a higher percentage of high-value fares, a phenomenon obscured by the overall average take rate.
3/ Meanwhile, Uber’s median take rate in the UK increased from 25% to 29%. On some individual trips, Uber pocketed more than 50% of the fare, with higher take rates concentrated on more valuable trips.
www.theguardian.com/technology/2...
UK Uber drivers’ earnings cut after changes to secretive algorithm
Introduction of ‘dynamic pricing’ also coincided with company raising trip prices, researchers finds
www.theguardian.com
2/ The data show a significant drop in driver pay after dynamic pricing was introduced. Average hourly pay fell from £22.20 to £19.06--before factoring in driver expenses. For a subset of 114 consistent drivers, 93 of them now earn less per hour.
6/ In sum, Uber is using its AI algorithms to squeeze more value out of workers, while drivers are earning less and their working conditions are worse.

It's one example of the "enshittification" of work from AI and surveillance capitalism--and it's a story that won't stop with Uber.
5/ Working conditions are also worse. Drivers now spend more time waiting for trips than carrying passengers, and pay is much less predictable. This forces them to organize their lives around an algorithm without knowing what they'll earn.
4/ Uber is also capturing much more "surplus value" (the revenue generated per on-trip driver hour minus labor cost) with dynamic pricing, mostly by taking a higher percentage of high-value fares, a phenomenon obscured by the overall average take rate.
3/ Meanwhile, Uber’s median take rate in the UK increased from 25% to 29%. On some individual trips, Uber pocketed more than 50% of the fare, with higher take rates concentrated on more valuable trips.
2/ The data show a significant drop in driver pay after dynamic pricing was introduced. Average hourly pay fell from £22.20 to £19.06--before factoring in driver expenses. For a subset of 114 consistent drivers, 93 of them now earn less per hour.
That's why @nelp.org is making the case for greater transparency--so drivers know what they'll earn, and researchers & policymakers can better understand this industry.
6/ To protect this model, Uber has aggressively opposed transparency, suing Colorado over disclosure requirements and now refusing to share its take rate figure with shareholders.
5/ Drivers once had a per-mile and per-minute wage floor; now they earn as little as the algorithm deems possible.

And Uber does the same on the other side of the ledger, repeatedly probing customers to figure out the highest price they’re willing to pay on every trip. www.nelp.org/ubers-price-...
Uber’s Price-Gouging and What We Can Do About It - National Employment Law Project
Uber has reached record profitability by gouging both consumers and drivers.
www.nelp.org