Imperfect information and psychological contract breaches: A closer look at Uber and DoorDash

Abstract

This paper explores the ways in which the practices of Uber and DoorDash contradict their promises to their workers, thus signifying a psychological contract breach. Through an exploration of grey literature and anecdotes collected via internet chat forums and content websites, the findings in this paper reveal that many Uber and DoorDash workers are experiencing working conditions that contradict their expectations. These psychological contract breaches are caused as a result of imperfect information. Withholding information regarding job scope, compensation, and how data is used to inform algorithmic management decisions are examples of mechanisms used by Uber and DoorDash which result in psychological contract breaches. As the overarching mechanism through which Uber and Doordash are breaching psychological contracts is imperfect information, this paper suggests that labour policy can address psychological contract breaches in app-work by regulating information disclosure.