Uber has allegedly been cheating both riders and drivers

Source: BGR
Published: Apr 8, 2017
Author: Chris Smith
Post Date: 2017-04-08 14:43:13 by cranky
Views: 1970

Uber has a lot of spring cleaning to do, considering the many distinct scandals it has to deal with. And things aren’t looking up for the “taxi” company, as a new lawsuit brings up an astonishing new claim. Apparently, Uber uses a “sophisticated” software that allows it to cheat on both the driver and the passenger.

According to the new class action suit found by Ars Technica, Uber’s software manipulates navigation data used to determine the “upfront” fare price, showing the customer a higher price than the driver.

This way, Uber can charge the rider more for a fare, while the driver gets paid from the cheaper, faster route.

What allegedly happens is that the customers are shown certain routes when hailing an Uber. But that route is slower and longer than what the driver sees.

“The manipulation of prices between the amount charged to Users and the amount reported to drivers is clever and sophisticated,” the suit alleges. Getty Images

“The software utilized in determining the upfront price is specifically designed to provide a route distance and time estimate based on traffic conditions and other variables but not to determine the shortest/quickest reasonable route based on those conditions.”

However, the software apparently comes up with a better route which the driver gets to see.

“Meanwhile, the software utilized in the driver’s application, which navigates the drivers to the User’s destination, utilizes traffic conditions and other variables to provide the driver with a more efficient, shorter, or quicker route to the User’s destination, resulting in a lower fare payout to the driver.”

A second benefit would be that the driver would get to pick a new fare faster with such a feature in place.

Uber’s “upfront” pricing scheme was introduced in September. At the time, the company informed drivers that the algorithm takes into account distance and time to calculate a fare.

The suit further claims that the driver is paid the lower rate and Uber gets to keep “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.”

If any of this is true, the implications are enormous, and could further escalate conflicts between drivers and the company. Not to mention that Uber clients won’t be too happy to learn the company has been cheating on them for a while now.

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#1: Stoner    To: cranky (#0)

Trucking companies do the same. Their computer software charges the shipper for more miles, and pays their drivers for less. When I was a driver, I always reset my odometer. When I got to the destination, the mileage was much greater, than what the shipping order showed. I had one fleet mgr that would correct & pay me the difference. She got fed up with the company, & quit. The next Fleet Mgrs would not. So I quit. The company made extra by overcharging the shipper, and made extra by underpaying the driver. Tuff racket.

Stoner posted on 2017-04-08 14:54:09   Reply   Private Reply


#2: Tooconservative    To: cranky (#0)

Uber will likely pay through the nose if this has been a persistent practice.

Tooconservative posted on 2017-04-08 15:04:53   Reply   Private Reply


#3: cranky    To: Stoner (#1)

Trucking companies do the same.

Amazing.

Didn't that piss off the unions?

cranky posted on 2017-04-08 15:05:50   Reply   Private Reply


#4: Stoner    To: cranky (#3)

" Didn't that piss off the unions? "

The company I worked for was non union, as most are. They screw the drivers.

The only Truck Driver Union I was aware of was the Teamsters. That is a strong union. They, to my knowledge only represent UPS & Fed Ex. Last I heard, Teamsters owns part of UPS, or has a very strong voice in management. In those two companies, drivers DO NOT get screwed over. But they also expect much of the drivers, no screwing around & being protected. If you are a typical union sluffer, they do not protect them, and they get rid of them. In the truck driving world, those are the best companies to drive for. But getting into those companies is very difficult.

I have heard good things about Wal Mart. I hear they treat their drivers very well, & I suspect that is true.

I quit driving about 7 years ago. It might be different now, but I doubt it.

Stoner posted on 2017-04-08 15:34:59   Reply   Private Reply