The advancement of technology and its widespread applications has given rise to a new type of business, known as platform businesses. Algorithms are essential tools for platforms to manage operations and simplify tasks for business owners. However, the use of algorithms also has consequences. The primary objective of this research is to investigate and identify the functions of algorithmic management and analyze its behavioral consequences on internet taxi drivers in Iran. The research community includes internet taxi drivers in Iran, and a theoretical sampling method was used to select the research sample. This study is qualitative and descriptive in terms of its applied goal and method. To collect qualitative data, a semi-structured interview tool was employed, and thematic analysis was used to analyze the data obtained from the interviews. The analysis of findings in the two sections of algorithmic management functions and its consequences yielded 189 codes for functions and 136 codes for behavioral consequences. The functions section contains 9 topics, including easy recruitment, multi-channel recruitment, motivational job design, systemic-attitudinal (perceptual) performance evaluation, digital training, performance-based service compensation, flexible service compensation management, systematic labor relations, and conditional maintenance. The results section includes 11 sub-themes, which are categorized under two main themes: pleasant feelings and unpleasant feelings. The findings indicate that algorithmic human resource management has both positive and negative consequences. While the positive consequences are often acknowledged, the negative consequences of this concept are frequently overlooked.