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FTC takes action against Uber for deceptive billing and cancellation practices

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Re: FTC takes action against Uber for deceptive billing and cancellation practices

#261

UberOne is why I almost never use UberEats any more and instead use a local competitor. Shortly after it was introduced it seemed every order of mine would get surprise delayed after pick up as the driver would have to first drop off a different order at >90° different direction from me, no doubt for the user who would get priority for being on UberOne. I don’t order food often enough to justify a subscription, so I…

Being on uber one does not prevent this. You get priority by paying another $3 to be priority, nothing else.

Fair enough, I checked the app now and I see the option, although our cost here works out to about USD 0.65 after currency conversion, or maybe it’s because I ordered something cheap.

Based on my always getting hit by this, I guess almost everyone does it.

And if most people choose this, it’s probably rare they can do double deliveries, meaning it’s practically guaranteed that not choosing the priority delivery will result in the algorithm gleefully using the rare opportunity to make Uber more money on the order by making your order part of the same trip as someone paying priority.

So I naively assumed that most people don’t choose this and I would have a low chance of being penalised, but because almost everyone is not wanting their food to be delayed, they’re all paying extra to avoid that. Uber cannot put one priority user above another, so they still land up with too few drivers during peak times, meaning there is still a wait time even for priority users, but on average everyone is paying extra even if on average delivery times aren’t better on average because when near everyone is highest priority, no one is, in practice Uber has raised the base delivery fee unless you’re willing to accept a delay.

But if they’re being honest, they should rather raise the base fee and offer a “discount” if you’re willing to wait longer, which is more representative of the real experience of users.

I guess that no one wants to feel like they’re a cheapskate, hence streaming packages offering “normal” advertising subsidised packages and “premium” ad free packages, as opposed to say “lite” and “normal”.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#262
post #249
post #225

Earlier quoted context omitted.

> If you just missed the train you paid a lot more. That doesn’t strike me as malicious. If you just missed the train, other users probably did, too. How did you find the price differentials with Lyft?

> That doesn’t strike me as malicious. If you just missed the train, other users probably did, too. You may not have started with malicious intent but you may have unintentionally created a malicious algorithm that learned to squeeze profits off of lower income people who normally take the train to save money but just missed it.

When the train leaves, some people miss it. They then use the app to hail a ride. The increased demand leads to a corresponding increase in price. This is how surge pricing works. What you seem to be suggesting is that this is inherently predatory, but it seems more likely that it’s just the result of a large number of people requesting rides at the same time.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#263
post #262
post #249

Earlier quoted context omitted.

> That doesn’t strike me as malicious. If you just missed the train, other users probably did, too. You may not have started with malicious intent but you may have unintentionally created a malicious algorithm that learned to squeeze profits off of lower income people who normally take the train to save money but just missed it.

When the train leaves, some people miss it. They then use the app to hail a ride. The increased demand leads to a corresponding increase in price. This is how surge pricing works. What you seem to be suggesting is that this is inherently predatory, but it seems more likely that it’s just the result of a large number of people requesting rides at the same time.

What I am suggesting is that whether or not the people are predatory, they created a system that is mathematically predatory.

In the pre-Uber world taxis would line up, the fare wouldn't be any different whether or not it is just after a train left, and more drivers would just know that there is higher demand at that location at certain times, without fare surges.

I do love being able to hail rides with a phone app, but I detest this fluctuating pricing.

It reminds me of why I like train travel in other countries but not so much in the US: In almost all of Europe and Asia, train tickets are fixed price based largely on distance travelled and class of train. In the US, Amtrak plays the idiot capitalist game of predatory money grabbing you if you need to make last minute emergency travel plans or changes.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#264
Uber is a complete scam. One of their legal numbers directed me to a person speaking with an accent and requesting me to pay a fee for something completely unrelated to what I had ask... it was a literal scam. They have stolen my food twice in a row and Uber decided it was appropriate to say no refunds even though by policy it is still lawful to provide me with a refund...

Uber rides and Uber eats is a whole scam... they are CONTACTLESS... someone with power should be doing something about this because their complete scammers and do not care to follow the policies they stipulated over themselves... ridiculous.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#265
Subject: Concerns Regarding Uber's Compensation Practices

Dear All,

As a driver for Uber Black and Black SUV services, I would like to express some concerns regarding the treatment of drivers and customers by the company. It seems that Uber prioritizes the interests of its board of directors and shareholders over those of both drivers and riders.

One issue I have observed is the disparity in compensation offers for similar ride requests. For instance, two drivers might receive the same request, yet each is offered a different amount of payment. It appears that the platform may take advantage of drivers who are known to accept lower fare rates by directing them less profitable rides.

Additionally, I want to share some insights that may not be widely known. Uber has led many passengers, including google AI search into providing false information to everyone regarding there payment structure. They have majority of everybody out there believing that drivers receive 75% to 80,% of the total trip cost, while the company (uber) retains 25% to 30%. However, based on my five years of experience with the platform, the actual compensation for drivers is closer to 25% to 30%, with Uber retaining 75% to 80%.

I encourage you to verify this for yourself during your next ride by inquiring with your driver about their earnings in relation to the fare you paid. This will provide a clearer picture of the company's compensation practices.

There is a pressing need for regulations to prevent companies from exploiting their workers in such ways. Unfortunately, meaningful change may be hindered by the connections some board members have with high-ranking government officials. A notable example is Tony West, Uber's board member and chief legal officer, who is related to former Vice President Kamala Harris

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#266
post #129

I’m bearish on uber because despite all of these shady tactics they are still barely profitable at the current scale and with enormous tailwinds. Last quarter they made $770 million on $12 billion of revenue. It’s just a lousy business model and they are desperate to beat Wall Street’s ever inflated expectations each quarter.

Yeah I wouldn't consider it a growth stock either. But 16.24 P/E isn't that high. There are blue chips higher than that.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#267

I've long suspected these shady practices, and I'm relieved they're finally being exposed. Utilities and others aren’t far behind, sending invoices no reasonable person wouldn’t question. Since 2019, I've relied on ride-shares and delivery services, consistently questioning their fee structures. During this time, I've spent an unconscionable amount on Uber and Uber Eats alone. A big shame both to the ones running the…

If you've regularly patronized these services isn't it you who's trained them to think it's acceptable?

Lots of comments here complaining about their food delivery... If it's a scam, why are you using it? It's a luxury to begin with; I've only used it like twice ever.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#268

Uber is an interesting company in that they were always shady, but initially in ways that customers liked (somewhat illegal taxis ripping off their drivers, for below cost, subsidized lifestyle by VC). They then flipped the "make a profit" switch and are now shady in ways customers dislike (ripping you the customer off).

I've been saying this about Google since the 2000s. The "don't be evil" slogan meant "prioritize growth over profit for now." And if anything, I find profit-taking more honest than loss-leading.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#269

Subject: Concerns Regarding Uber's Compensation Practices Dear All, As a driver for Uber Black and Black SUV services, I would like to express some concerns regarding the treatment of drivers and customers by the company. It seems that Uber prioritizes the interests of its board of directors and shareholders over those of both drivers and riders. One issue I have observed is the disparity in compensation offers for s…

I live somewhere where lyft and uber don't operate but this is the sort of thing I would ask every time. At least a cabbie knows what they're charging, it's on the meter.

Re: FTC takes action against Uber for deceptive billing and cancellation practices

#270
post #129

I’m bearish on uber because despite all of these shady tactics they are still barely profitable at the current scale and with enormous tailwinds. Last quarter they made $770 million on $12 billion of revenue. It’s just a lousy business model and they are desperate to beat Wall Street’s ever inflated expectations each quarter.

That's sad because I'm happy they exist. In a material way they've made my life better. I hope there always remains a nationwide app based taxi service.

What nation? They're not nationwide in the US...
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