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Business
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Title: Uber has allegedly been cheating both riders and drivers
Source: BGR
URL Source: http://nypost.com/2017/04/07/uber-h ... ating-both-riders-and-drivers/
Published: Apr 8, 2017
Author: Chris Smith
Post Date: 2017-04-08 14:43:13 by cranky
Keywords: None
Views: 493
Comments: 4

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. (2 images)

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#1. 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.

Si vis pacem, para bellum

Rebellion to tyrants is obedience to God.

There can be no divided allegiance here. Any man who says he is an American, but something else also, isn't an American at all. We have room for but one flag, the American flag... We have room for but one language here, and that is the English language... and we have room for but one sole loyalty and that is a loyalty to the American people."Theodore Roosevelt-1907.

I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within." -- General Douglas MacArthur

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


#2. 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 ET  Reply   Trace   Private Reply  


#3. 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 ET  Reply   Trace   Private Reply  


#4. To: cranky (#3) (Edited)

" 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.

Si vis pacem, para bellum

Rebellion to tyrants is obedience to God.

There can be no divided allegiance here. Any man who says he is an American, but something else also, isn't an American at all. We have room for but one flag, the American flag... We have room for but one language here, and that is the English language... and we have room for but one sole loyalty and that is a loyalty to the American people."Theodore Roosevelt-1907.

I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within." -- General Douglas MacArthur

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


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