Uber Faces Federal Criminal Probe over Transportation Regulation Evading Software

[cageymaru]

Greyball is the name of Uber's software that allowed it to deceive and evade local transportation regulators in cities that Uber wasn't licensed to operate in. This has brought the wrath of the Department of Justice upon the company as the DOJ has launched a probe into the company's practices. Local officials would fine, impound, and use other tactics to keep Uber from operating in unauthorized cities. So Uber designed the Greyball app to mine the credit card information of a potential rider to see if was issued by a credit union used by police and scanned social media contacts to detect if the potential fare had friends in law enforcement. If any of these red flags were present, then the customer was sent a false version of the standard Uber app and wouldn't be picked up. Uber was able to evade 16 Portland Bureau of Transportation officials in December of 2014 alone by denying them dozens of rides using this technology.

According to the company blog, Uber started off with noble intentions for the software. Their drivers were receiving physical threats and this software allowed them to avoid detection. Uber used it to test new features and protect its drivers from fraud and harm. If a fare was determined to be fraudulent or in violation of their terms of service, then they would not be picked up. It will be interesting to see who authorized the nefarious uses of the software and what type of fine or jail time will be associated with these cat and mouse games that Uber played on public officials such as local law enforcement. Do you think they will get a slap on the wrist or properly punished?

Uber said it used the Greyball technology in December 2014, while it was operating without approval, because it was “deeply concerned that its driver-partners would be penalized financially” or otherwise for their driving. The program was part of a broader Uber system, called Violation of Terms of Service, that analyzed credit card, device identification, location data and other factors to predict whether a request for a ride was legitimate, current and former employees said. However, the Greyball technique was also used against suspected local officials who could have been looking to fine drivers, impound cars or otherwise prevent Uber from operating, the employees said.

 

[Exavior]

Are we supposed to be pro Uber and their bat shit crazy actions or anti Uber and their bat shit crazy actions? I always forget.

With some of the stuff they have been doing and getting in trouble for here recently it will be interesting to see if they start to go have any huge impact to their business as a result of any of it.

 

[tetris42]

Are we supposed to be pro Uber and their bat shit crazy actions or anti Uber and their bat shit crazy actions? I always forget.

Both, basically. One side of the spectrum, you have a regulated taxi fleet that's essentially had an extortion racket going on. On the other hand, you have Uber, offering convenience for a lower price, but ignoring laws for safety, pretending employees are contractors, and paying shit wages which helps lead to race-to-the-bottom working conditions. It's the extreme of both ends, they both have big problems and do things that the other should have been doing. Not that most people seem capable of thinking in terms more complicated than binary for / against thinking...

 

[cageymaru]

Both, basically. One side of the spectrum, you have a regulated taxi fleet that's essentially had an extortion racket going on. On the other hand, you have Uber, offering convenience for a lower price, but ignoring laws for safety, pretending employees are contractors, and paying shit wages which helps lead to race-to-the-bottom working conditions. It's the extreme of both ends, they both have big problems and do things that the other should have been doing. Not that most people seem capable of thinking in terms more complicated than binary for / against thinking...

I was thinking the same about the Greyball app. If UBER was a software house, they would make millions off the legal version of the app selling it to taxi cab companies and other transportation companies. But there is the sinister side that they just can't seem to get away from.

 

[daglesj]

I've always felt UBER is a battering ram to get rid of regulations, safety and employment laws so other corporations can move in and essentially screw us all over again.

Cool can quickly become cruel.

 

[bmango]

I've always felt UBER is a battering ram to get rid of regulations, safety and employment laws so other corporations can move in and essentially screw us all over again.

Cool can quickly become cruel.

Agreed and would be happening with or without uber. Maybe uber can hit the officials with a RICO to shed more light on the other side of the equation.

 

[PigLover]

I'm no fan of Uber or their crazy aggressive tactics - but I wonder exactly what law was broken here? Justice department over-reach is just a crazy as Uber's and, frankly, a heck of a lot more frightening.

 

[Jarod888]

Taxis have had a monopoly for too long. They are just like the cable companies, get with the times, stop trying to beat down innovation, adapt and survive or die slowly. It's sad these companies use the government as their henchmen rather than updating their monopolistic model to be competitive once again.

 

[Methadras]

Is software to tell you where government officials/LEO's are (public employees) at any given time illegal?

 

[Scizyr]

Only thing I think that could be potentially damning about the software is how it probes user data, though if it uses OSINT there's nothing illegal about it. I think Portland is just pissed because they're having trouble keeping Uber out of their shit hole town. I never hear a good story about Portland.

 

[gxp500]

Another week another uber scandal, whats new?

 

[Mr34727]

Both, basically. One side of the spectrum, you have a regulated taxi fleet that's essentially had an extortion racket going on. On the other hand, you have Uber, offering convenience for a lower price, but ignoring laws for safety, pretending employees are contractors, and paying shit wages which helps lead to race-to-the-bottom working conditions. It's the extreme of both ends, they both have big problems and do things that the other should have been doing. Not that most people seem capable of thinking in terms more complicated than binary for / against thinking...

I'm sorry, why do we think they are employees again? They literally work when they want and can accept or decline to work based on the variable pay at that time/in that location. That's the definition of a contractor.

"Race to the bottom working conditions"....? Seriously? These are not coal miners from 1910- these are people sitting in an air conditioned vehicle doing what they want, managed to their own whims.

If an Uber driver doesn't like the pay at that time (which again btw, its variable), they can jump ship to Lyft, Amazon, or any other contracting driving service.....and then go right back to Uber an hour later if they choose to.

 

[tetris42]

I'm sorry, why do we think they are employees again? They literally work when they want and can accept or decline to work based on the variable pay at that time/in that location. That's the definition of a contractor.

They're in a hazy area in between. They dictate the rates, the "contractor" has no say in that. You say the "contractors" can work when they want, but Uber can cancel their service if they deem their acceptance rate isn't high enough. They dictate aspects of how you're allowed to perform your service (you can't have a firearm on you for protection, you cannot accept anonymous pickups in your car, etc.). A normal contractor you tell them what you need done and they do it. You don't tell them how to do their job, you tell them what results you expect. Uber isn't that simple.

"Race to the bottom working conditions"....? Seriously? These are not coal miners from 1910- these are people sitting in an air conditioned vehicle doing what they want, managed to their own whims.

Just because you're not getting black lung from the coal mines doesn't mean working conditions aren't deteriorating. A taxi driver has reliable hours, insurance, benefits, and higher wages overall. Uber has more flexible hours and nothing else. They pay car expenses, they have to pay for their own insurance, they have no benefits, and most of all, they get paid less. Of course some drivers just want extra flexibility, that's fine. But this is such a massive shift in how service is conducted, many would prefer more dependable work, but Uber is all they can get. So instead of having to pay fair wages, you pay that absolute minimum that people will work for. That's practically the definition of race to the bottom.