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.

Comments

More proof that drivers are employees

[whoever57]

If this claim is true, the claim that Uber merely facilitates the agreement between the driver and passenger and takes a commission is clearly bogus.

Also, if Uber specifies the route and demands that the driver takes that specific route, that may be exerting too much control of the drivers for them to be contractors.

I am running out of excuses

[jediborg]

I am running out of excuses for Uber's behavior. As a Libertarian i love their disruptive technology. I cheered them on when they took on over-regulated cities that basically monopolized (in my view) taxi cab services. I cheered on them using the free market to drive down prices. I truly did (and still mosty do) think the uber/lyft business model increases freedom for all, allowing anyone to obtain extra income without having to interview, sign a bunch of paperwork, and punch a 9-5 clock everyday and do exactly as ordered by a manager.

That said, if you are going to tackle regulators and try to bring free-market reforms, a certain percentage of the population is going to perceive that as immoral. In order to stand up against the fierce winds of authoritarianism you better darn make sure your service is as safe and convenient as possible and make sure your business is run in such a way that it stands up against the fiercest of ethical scrutiny.

When you have cars that are killing people, contractors being accused of sexual assault, MANAGERS being accused of sexism/racism in the workplace, and a CEO with a cringe-worthy temper AND evidence that your pricing models are not as transparent and honest as you led people to believe, you are just further reinforcing socialist's/communist's opinions that all companies are greedy, immoral, and care about nothing more than the bottom line. Instead of being a force for good and promoting libertarian ideals, you are just contributing to the decline of freedom and encouraging an excessive bureaucratic government to continue regulating our rights away

Re:I am running out of excuses

[barc0001]

> you are just further reinforcing socialist's/communist's opinions that all companies are greedy, immoral, and care about nothing more than the bottom line

Really, you think 1) that's just an opinion instead of a nearly universal fact and 2) that only socialists and communists think that way?

Re:And here's the issue with excessive regulation.

[Serge_Tomiko]

Price floors are always a good thing, and are the hallmark of civilized society.

The limit to the number of taxis is also, generally, a good thing.

taxi regulation began in the world because everyone with a car started to pick up fares during the Great Depression. It really was total chaos, especially in Manhattan where all this regulation began.

Re:Regulation

[LVSlushdat]

I gotta funny feeling taxis EVERYWHERE suck!! My one experience with either of the major ride-shares was last October from the airport home via Lyft.. Since I'd never used either service, when my plane landed late and I decided I didn't want to wake the wife to come get me, I installed the Lyft app from GooglePlay and signed up for an account. Total time from loading the app to hopping into a nice Nissan Altima with a lovely lady driver was less than 10 mins, including my derp-out of not being in the right location for pickup and the driver having to make another circuit of the drive. All in all I was seriously pleased with Lyft and the driver, who I found out was a recent immigrant from Russia, doing Lyft as a side-gig.. The fare was $14 and I gave her a $7 tip.. Found out later had I taken a taxi, I would have paid close to $50 withOUT a tip.... After reading all of the horror stories about Uber, I believe I'll stick with Lyft in the future, should I need a ride somewhere...