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Uber Said To Use 'Sophisticated' Software To Defraud Drivers, Passengers (arstechnica.com)
A class-action lawsuit against Uber alleges that Uber has "devised a 'clever and sophisticated' scheme in which it manipulates navigation data used to determine 'upfront' rider fare prices while secretly short-changing the driver," reports Ars Technica. "When a rider uses Uber's app to hail a ride, the fare the app immediately shows to the passenger is based on a slower and longer route compared to the one displayed to the driver. The software displays a quicker, shorter route for the driver. But the rider pays the higher fee, and the driver's commission is paid from the cheaper, faster route, according to the lawsuit." From the report: This latest lawsuit (PDF) claims that Uber implemented the so-called "upfront" pricing scheme in September and informed drivers that fares are calculated on a per-mile and per-minute charge for the estimated distance and time of a ride. "However, the software that calculates the upfront price that is displayed and charged to the Users calculates the expected distance and time utilizing a route that is often longer in both distance and time to the one displayed in the driver's application," according to the suit. In the end, the rider pays a higher fee because the software calculates a longer route and displays that to the passenger. Yet the driver is paid a lower rate based on a quicker route, according to the suit. Uber keeps "the difference charged to the User and the fare reported to the driver, in addition to the service fee and booking fee disclosed to drivers," according to the suit.
Why is Uber's woes a surprise to anyone? We learned these lessons as a society when taxis were new.
Uber shows up, avoids regulation, offers cheap fares, accuses the existing infrastructure off being too bloated, and makes a bunch of money. Then it's noticed they are doing the same thing that taxis used to do before formal regulation.
Things like: overworking drivers, fudging rates, opaque accounting practices, etc.
I have to snicker when those in their 20's seem to think Uber is revolutionary and doesn't need to be "old skool" regulated, then quickly complain when things don't work out by saying, "they shouldn't be allowed to do that."
If you lie, steal, cheat, manipulate; and STILL cannot turn a profit, then you truly suck at business.
Table-ized A.I.
It sounds like Uber charges an up front fixed price fee with a risk margin built in. If the driver takes less time then Uber keeps this margin, however if the driver takes longer is Uber out of pocket? If so this is pretty much like all fixed price work.
Uber could make or lose money on each job.
"Do you think we could wipe out world hunger forever if scientists figured out how to make AOL's Free CD's edible?"-
Or, alternately, the passenger sees the best route when they book, but that can change due to traffic, and the driver can therefore get a better (or worse!) Best route when they pick up. That's how up front charging works. Sigh.
I thought Uber received a percentage of the amount the customer pays, and that was set in the contract between Uber and driver. If the calculated price somehow changes, then Uber should still receive the same, fixed percentage of what the customer pays. I'd say that if that is what the contract says, and Uber doesn't report the payment correctly and keeps the difference, that's just plain fraud.
Taxis have all sorts of regulations, most of them are for the good of society, such things as:
- maximum prices
- accountable billing practices
- enhanced driver licensing requirements
- vehicle inspections
- hours of service regulations
- insurance requirements
But then governments went overboard and also added regulations that do not help society at all such as:
- minimum prices
- limits to the number of taxis
The end result is that while most people applaud the items in the first list, the abhor the regulations in the second list. That list is why society as a whole is screaming for "ride-sharing" services to come in to their cities. That's why everyone is willing to pretend that these aren't taxi services, it's to try to get around the ridiculousness of those excessive regulations that are hated by all but the taxi industry themselves.
Problem is, you end up "throwing out the baby with the bathwater". If governments had stuck to regulating the safety and price gouging aspects of taxis, without artificially constraining supply or forcing artificially high prices, there'd be no demand for "ride sharing" services.
Any smart government would start over, and regulate anyone carrying passengers for hire the same, without limiting who can do it, or setting a minimum price. You'd get as free a market as possible, while still ensuring everyone plays fair and safe. Uber would hate you, but they'd have a really tough time getting the public on their side if the local taxi industry was already competitive (which they'd have to be if there were no limit on the number of taxi licenses).
"Uber Said To Use 'Sophisticated' Software To Defraud Drivers, Passengers"
Really now. You wouldn't expect a high tech company like Uber to use unsophisticated software to rip off its customers and employees ... ehrr .. independent contractors?
You can't see ANYTHING from a car, You've got to get out of the goddamned contraption and walk...Edward Abbey
Libertarians seek to maximize political freedom and autonomy, emphasizing freedom of choice, voluntary association, individual judgment, and self-ownership. So sayeth Google, so sayeth we all.
You can use your individual judgement and freedom of choice to voluntarily associate yourself with a pack of vicious scumbags, or not.
Mind you, the idea what people will generally act decently given that freedom of choice is just SO ADORABLE.
Libertarians are so cute, yes they are, yes they are!
Manager: Programmer#1, I need you to create a function named Charge_Customer() to calculate the most scenic and pleasant route for our beloved customers.
Programmer#1: OK boss.
Manager: Programmer#2, I need you to create a function named Pay_Driver() to calculate the shortest and fastest route possible for our beloved drivers.
Programmer#2: OK boss.
Manager: Programmer#3, I need you to write a program Win_Win that calls Charge_Customer() and Pay_Driver().
Programmer#3: OK boss.