“Uber Helps Solve This Fundamental Problem By Using Psychological Inducements”

Fascinating article by the New York Times Technology section detailing how Uber and other Gig Economy giants are employing behavioral science to subtlely manipulate their workers into acting in the best interests of the companies. As the piece says: “Most of this happens without giving off a whiff of coercion.”

Businesses have forever tried to nudge consumers into buying their products, whether though legitimate means or the unethical kind (e.g., subliminal advertising), but using Digital Age tools to stealthily treat employees like lab rats is an altogether different thing. The “freedom” promised to contractors who toil in the piecemeal workforce isn’t really quite so free, and there are broader implications for the future.

An excerpt:

Even as Uber talks up its determination to treat drivers more humanely, it is engaged in an extraordinary behind-the-scenes experiment in behavioral science to manipulate them in the service of its corporate growth — an effort whose dimensions became evident in interviews with several dozen current and former Uber officials, drivers and social scientists, as well as a review of behavioral research.

Uber’s innovations reflect the changing ways companies are managing workers amid the rise of the freelance-based “gig economy.” Its drivers are officially independent business owners rather than traditional employees with set schedules. This allows Uber to minimize labor costs, but means it cannot compel drivers to show up at a specific place and time. And this lack of control can wreak havoc on a service whose goal is to seamlessly transport passengers whenever and wherever they want.

Uber helps solve this fundamental problem by using psychological inducements and other techniques unearthed by social science to influence when, where and how long drivers work. It’s a quest for a perfectly efficient system: a balance between rider demand and driver supply at the lowest cost to passengers and the company.

Employing hundreds of social scientists and data scientists, Uber has experimented with video game techniques, graphics and noncash rewards of little value that can prod drivers into working longer and harder — and sometimes at hours and locations that are less lucrative for them.•