Uber Xchange leases to marginal drivers

Mike Isaac’s Super Pumped (p. 265) describes perils in Uber’s Xchange program, in which Uber provided vehicles to high-risk driver with poor or nonexistent credit.  One, these drivers had disproportionate rates of safety incidents including speeding tickets and sexual assaults. Two, dealerships were pushing these drivers into expensive leases that lowered profits for both drivers and Uber — causing Uber to lose more than $9,000 per vehicle.  Furthermore vehicles were returned in far worse condition than anticipated.

Disdain for drivers

Mike Isaac’s Super Pumped (p. 234) describes Uber leaders’ disdain for drivers.  As managers examined comments from drivers, “one manager expressed disgust with the spelling and grammatical errors the drivers included in their responses. ‘God, I can’t believe these people’s votes count the same as ours,” he quipped to his subordinates.”

Isaac also points out the high churn of drivers — how quickly drivers stop driving and don’t return.  As of early 2016, roughly a quarter of Uber’s drivers churned every three months — requiring the company to constantly seek other drivers.

Brazilian thieves and taxi cartels anonymously attacked, robbed, and even murdered drivers

Mike Isaac’s Super Pumped (p. 216) reports that in Brazil, Uber had a particularly light sign-up process: No identify documents, no credit card (since cash was more widely used), and just an email address or phone number.  Thieves and taxi cartels could therefore sign up for Uber anonymously — then steal or burn cars, attack or rob drivers, and sometimes commit murder.  Among the victims was Luis Filho, who was stabbed to death as passengers stole his vehicle.

2014 hack released data about drivers

Mike Isaac’s Super Pumped (p. 208, 215) reports a May 2014 hack in which the names and license numbers of more than 50,000 drivers were compromised.  Uber kept the hack secret, although California law required notifying authorities of a data breach.

Under guidance from new Chief Security Joe Sullivan, Uber finally reported the breach in February 2015, nine months after it occurred.