Uber Eats in Australia faced a backlash from bicycle couriers following an algorithm update that slashed their earnings by up to 50 percent.

Uber's updated algorithm started to favour couriers using cars over those on bicycles, leading a noticeable decrease in delivery assignments for bicycle and walking couriers compared to their car-driving colleagues, particularly during peak hours.

According to Uber Eats drivers, changes to the delivery algorithm resulted in huge income reductions, bringing their earnings down to approximately AUD 13 per hour. 

The discovery resulted in Uber Eats drivers protesting outside the New South Wales Parliament.

In response, Uber denied making specific changes to how earnings are calculated but acknowledged a shift in order routing to enhance delivery efficiency and said that the algorithm considered various factors, including the courier's mode of transportation and location.

The situation was seen to reflect poorly on Uber and on the delivery industry more generally, with many workers feeling their earnings to be unstable and under threat. It also highlighted the lack of transparency at Uber.