Category: specific regions

Issues affecting Uber service in specific cities or regions, including city-specific or regional requirements and Uber’s compliance or noncompliance.

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Sold Chinese assets to Didi

Rather than continuing to compete with Didi Chuxing, the dominant ride-hailing service in China, Uber sold its Chinese assets to that firm — essentially ending competition in ride-hailing in that country.

This transaction raised several concerns. One, Didi and Uber jointly controlled the overwhelming majority of ride-hailing service in China. The nearest competitor had just 3.3% market share as of the time of the transaction. The transaction thus created an effective monopoly for Didi — allowing Didi to charge higher prices and fees, to the detriment of both drivers and passengers.

Two, as part of the transaction, Uber received 17.5% ownership of Didi, and Didi in turn held an investment in Lyft. So the Didi-Uber deal made Uber a part owner of its biggest US competitor.

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Self-driving vehicle struck and killed pedestrian

An Uber self-driving vehicle struck and killed a pedestrian in Tempe, Arizona.

Early reports indicated that the pedestrian was crossing a roadway after dark, outside a crosswalk, and that Uber would probably be deemed not at fault in this incident.

But reviewing the crash video, multiple concerns arose. For one, Uber’s onboard driver — responsible for taking over in case of system problems — was looking down or sideways, hence unable to see the pedestrian. If her hands were on the steering wheel, ready to take over driving from the computer, that is not apparent from the video. Two, the pedestrian was making steady progress across the roadway. Three, some experts said a standard automatic emergency braking system, even on ordinary commercial vehicles, would have been able to detect the pedestrian and at least apply the brakes.

Velodyne, which makes the LIDAR sensors used on Uber’s autonomous cars, expressed surprise that the Uber vehicle hit the pedestrian. A Velodyne spokesperson explained in an email: “We are as baffled as anyone else. … Certainly, our Lidar is capable of clearly imaging Elaine and her bicycle in this situation.” Velodyne suggested that Uber’s software might be at fault, explaining that “[o]ur Lidar doesn’t make the decision to put on the brakes or get out of her way” and that Uber’s systems would need to make those decisions.

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Encouraged Argentinian users to pay via Bitcoin-backed credit card issued from Gibraltar

After credit card processors were ordered not to process payments for Uber in Argentina, Uber found a workaround. In particular, Uber encouraged Argentinian users to get credit cards from Xapo, a startup that issues credit cards that draw funds from a customer’s Bitcoins. Xapo issued cards out of Gibraltar and thus escaped the Argentinian injunction that targeted local credit card issuers.

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Ignored multiple injunctions to cease operation in Argentina

Uber was found to be unlawful in Argentina, including for operating without a permit or tax-identification number.

A series of injunctions ordered the company to cease operations, and ordered telecommunications vendors and payment processors to cease supporting Uber. The Stanford Center for Internet & Society explained:

Shortly thereafter, a criminal prosecutor from the City of Buenos Aires issued an injunction ordering ENACOM (Argentina’s FCC) to block the UberApp. Apparently, ENACOM refused to comply with the injunction arguing that a local prosecutor was not a competent authority to order such a measure. On April 22, a criminal judge from the City of Buenos Aires ordered ENACOM to block Uber within the City of Buenos Aires jurisdictional limits. It is not clear whether ENACOM, a federal agency, will comply with a City of Buenos Aires order. Content circulation through communications networks is a federal matter in Argentina, which is supposedly beyond the reach of local government jurisdiction.

Finally, the Consumers Protection Agency of the City of Buenos Aires—an administrative agency—issued an injunction ordering telecoms to block the App and credit card companies to block any transaction related to the App. The injunction was issued against telecoms and credit cards as “contributors” to an allegedly harmful activity. A few days later, also a judge in Buenos Aires ordered credit card companies to cease their operations with Uber.

Nonetheless Uber continued operations, including encouraging Argentina users to pay via a Bitcoin-backed credit card.

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Australian study finds drivers paid below applicable minimum wage, concludes “exploitation”

Jim Stanford of the Centre for Future Work (Australia) analyzed payments to UberX drivers in six Australian cities. He found that drivers earn less than would be required under the applicable Australian wage requirements. After deducting Uber’s fees, applicable taxes, and the cost of vehicle and maintenance, the study found driver pay of A$14.62 per hour, well below the national statutory minimum wage (A$18.29) and less than half the weighted-average minimum wage including casual loading and penalty rates for evening and weekend work that would apply to similar waged employees in Australia (Modern Award #MA00063 for Passenger Vehicle Transportation). The study finds that this underpayment adds up to hundreds of millions of dollars per year in Australia alone.

The study notes that Uber’s prices are well below taxis, and asks how Uber gets the cost advantage that allows it to offer notably lower prices. Finding similar technology — drivers driving cars — the study concludes that underpayment of UberX drivers has been essential to Uber’s growth.

The study also criticized Uber’s right to change its contract with drivers at any time (which it suggested might violate Australia’s Competition and Consumer Act regarding fair contracts), Uber’s monitoring of driver performance through online ratings (which may not be reliable and are vulnerable to bias), that driver vehicles lack certain safety equipment regularly installed on taxis, that drivers work excessive hours, and that Uber seeks to provide excess capacity which can harm both drivers and congestion.

The study was particularly pointed in its assessment of who gains and who loses in Uber’s model: “The effective transfer of wealth from Uber drivers to the company’s owners (some of whom are billionaires)… is an especially galling distributional outcome.” The study’s conclusion is that Uber’s labor practices are “negative and exploitive.”

Study: Subsidising Billionaires: Simulating the Net Incomes of UberX Drivers in Australia and introduction

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European Court of Justice said Uber is a transportation service, may be regulated at national level

The European Court of Justice (the highest court in Europe) held that Uber is a transportation service, which may therefore be regulated by each country in Europe. The ECJ explained:

The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport. Member states can, therefore, regulate the conditions for providing that service.

In contrast, Uber had argued that the company was an information technology service, subject only to Europe-wide regulation and exempt from national law.

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License suspended in Sheffield, UK

The city of Sheffield, UK suspended Uber’s license. Uber said this was an “administrative error” resulting from the company’s failure to change the name on its license based on the departure of the company’s UK head. Sheffield said such a change is not permitted, while Uber said it successfully made this change in other jurisdictions.

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Drivers in Nigeria use fake GPS to inflate fares

In Lagos, Nigeria, Uber drivers used apps to override phone GPS, causing Uber’s app to record a longer route than was actually taken and inflating the fares charged to passengers. Quartz reports many drivers inflating fares by 1000 to 2000 naira ($3 to $6), though some inflated far more than that.

Drivers reported using this tactic in response to Uber reducing the amount they were paid. They describe protesting unsuccessfully, and resorting to GPS trickery for lack of other ways to get the payment they thought they deserved.

Some drivers said Uber knew about their methods and allowed them to continue. One driver described the Uber app reporting “fake location detected” yet allowing the driver to proceed and charge an inflated fare.

Uber says it refunds all riders who report fraudulent activity.

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