Recruited drivers with exaggerated earnings claims

The Federal Trade Commission flagged Uber exaggerating the yearly and hourly income drivers could make in certain cities. For example, Uber claimed on its site that uberX drivers’ annual median income was more than $90,000 in New York and more than $74,000 in San Francisco — but the FTC found that the actual medians were $61,000 and $53,000 respectively, and that less than 10 percent of all drivers in those cities earned the amounts Uber touted.

The FTC also alleged that Uber made false hourly earnings claims in job listings on Craigslist and elsewhere. In eighteen different cities where Uber advertised hourly earnings on Craigslist, fewer than 30% of drivers earned the promised amount. In some cities, as few as 10% of drivers earned the promised amount. Details in the FTC’s complaint.

Uber paid $20 million to settle these claims (along with claims about vehicle financing terms). The funds were used to provide refunds to affected drivers.

3,000 cases in Miami against Uber drivers, totaling $3.2 million

The Miami Herald reports that Uber drivers have received more than 3,000 tickets and similar citations, totaling $3.2 million. One proposal would waive $1.4 million of that, though critics questioned why the fines should be reduced.

Police have also impounded at least 20 cars from Uber drivers.

Commissioner Dennis Moss said Uber “made a conscious decision to violate the rules” and should therefore pay the full penalty. Other critics noted Uber’s guidance to drivers about how to avoid getting caught by police.

City managers told drivers to disguise themselves to avoid enforcement by MIA airport police

In response to enforcement by airport police at Miami International Airport, Uber’s Miami city managers advised drivers to conceal themselves from airport police:

This is an important message from Uber Miami for our valued partners in South Florida about serving South Florida airports, including Miami International Airport. There have been some instances of partners receiving tickets for picking up or dropping off Uber riders at the airport.
While we continue our discussions with authorities on ways to develop a long-term solution, here are a few things you can do to make the pickup and drop off experience more enjoyable for both you and the rider:
– Keep your Uber phone off your windshield – put it down in your cupholder
– Ask the rider if they would sit up front
– Use the lanes farthest from the terminal curbside for pickup and drop off

Mike Isaac’s Super Pumped (p. 294)extends this quote with Uber’s promise to reimburse tickets and legal costs:

Remember, if you receive a ticket while picking up or dropping off Uber riders at the airport, Uber will reimburse your costs for the ticket and provide any necessary legal support. Take a picture of your ticket and send it to XXXXXXXXXX@uber.com.

Failed to take action on drunk driving complaints

The California Public Utility Commission found that Uber violated CPUC “zero-tolerance” rules in its handling of 151 complaints, failing to suspend and/or investigate the drivers. In only 22 of 154 complaints did Uber suspend the driver within one hour of a passenger complaint. Furthermore, some of the supposedly-suspended driers were nonetheless able to log in to Uber, respond to ride requests, and provide additional rides.

CPUC further found that, contrary to CPUC rules, Uber failed to implement a “zero tolerance” policy that immediately suspended a driver for a DUI allegation. Instead, Uber’s process had multiple steps and multiple opportunities for error by Uber staff. In contrast, CPUC rules required Uber to suspend the driver before verifying the validity of the complaint.

CPUC also found limited evidence that Uber followed up with passengers to investigate allegations, including Uber failing to follow up in several hours or even a full day after a passenger’s complaint.

In light of these practices, CPUC recommended a penalty of $1.1 million.

Pittsburgh Mayor criticized Uber

Pittsburgh Mayor Bill Peduto, previously an Uber zealot, told the Wall Street Journal that he had become disillusioned with the company. Peduto wanted Uber to give more back to the city, including hiring local talent, providing better work conditions for Uber’s drivers, improving fuel efficiency, expanding service to elderly residents, and supporting the city’s federal grant applications.

Refused to honor taxi strike protesting Trump travel ban

When taxi drivers at JFK Airport went on strike to protest President Trump’s travel ban targeting seven Muslim-majority countries, Uber continued service. While Uber claimed that continued service would assist passengers in completing their journeys, critics saw Uber profiteering and failing to honor an important principle.

Criticism was sharpened because Uber CEO Travis Kalanick at the time served as a strategic advisor to Trump, suggesting that he supported the travel ban or Trump’s policies more generally. (Kalanick later stepped down from that advisory role.)