Uber fined $14m for lying to get customers to ditch cabs
- Reference: 1670391006
- News link: https://www.theregister.co.uk/2022/12/07/uber_australia_fined_misleading_deception/
- Source link:
Uber did so in two ways – one of which involved the offer it made in some parts of Australia to arrange rides in ye olde licensed taxis from within its app.
The court [1]found that Uber's app and website displayed a likely price for taxi rides, but overestimated that fare.
[2]
"The actual price was likely to be less than the lower range of the estimate of that fare range," the judgement states. In other words, Uber misled users by suggesting a taxi would be more expensive than was actually the case. That would likely steer them to taking an Uber, even if it wouldn't really be the best option.
[3]
[4]
The other infraction concerns the fees that Uber charges when customers cancel a ride they've already booked.
Between 2017 and 2021, cancelling customers would receive a message warning they may be charged a cancellation fee – even during the period of time during which Uber also promised cancellation would be free.
[5]
More than two million people saw those messages, meaning Uber had more than two million opportunities to cajole people into riding rather than incurring a fee for no service.
[6]Asia's superapps follow another hot tech trend: mass layoffs
[7]Amid losses, Uber driven to become advertising network
[8]Uber, Lyft stock decimated as US aims to classify gig workers as staff
[9]No Shangri-La for you: Top hotel chain confirms data leak
The case was brought by Australia's Competition and Consumer Commission (ACCC), whose chair Gina Cass-Gottlieb [10]expressed satisfaction at the court's decision.
"We took this important case because we understand that consumers rely on apps, like the Uber app, to provide accurate information to inform their purchasing decisions because they cannot independently check or monitor whether the information displayed is accurate," Ms Cass-Gottlieb said.
While the ACCC had a win in the case, the sparkling wine may not be flowing in the regulator's office. It sought a fine of AU$26 million, and Uber agreed to pay that sum.
"It is unnecessary and unhelpful to speculate about why the respondent may have agreed to a penalty that is higher than the court considers to be appropriate," wrote justice Michael O'Bryan. The ACCC has pointed out that the justice also observed "The conclusion reached in this case should not be understood as any reduction in the court's resolve to impose penalties that are appropriate to achieve the statutory objective of deterring contraventions of the Australian Consumer Law."
[11]
Instead, the lesser amount reflects "the statutory criteria and the applicable principles to the circumstances of this case."
The case is yet another example, as if any were needed, of scofflaw behavior by Uber, which entered markets around the world in full knowledge that licensed taxis had a government-decreed monopoly on personal transport services. It has since been penalized for [12]overcharging disabled customers , [13]deceptive advertising in France , and [14]exposing customers' data in a massive leak that its CSO [15]tried to cover up .
The above represents a small sample of the company's misdeeds. It still has to answer for a [16]massive cloud fail in September 2022, and [17]deceiving investigators as they tried to probe its affairs.
Hurrah for disruption! ®
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[1] https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2022/2022fca1466
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y5ByUqM6pUGVM3L4FQWEiAAAAE4&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y5ByUqM6pUGVM3L4FQWEiAAAAE4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y5ByUqM6pUGVM3L4FQWEiAAAAE4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y5ByUqM6pUGVM3L4FQWEiAAAAE4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2022/11/22/asias_superapps_layoffs/
[7] https://www.theregister.com/2022/10/19/uber_ads/
[8] https://www.theregister.com/2022/10/11/us_uber_lyft_gig/
[9] https://www.theregister.com/2022/10/05/shangri_data_leak/
[10] https://www.accc.gov.au/media-release/uber-to-pay-21m-for-misleading-representations-about-uber-taxi-fares-and-cancellation-fees
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y5ByUqM6pUGVM3L4FQWEiAAAAE4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2022/07/19/uber_discrimination_settlement/
[13] https://www.theregister.com/2015/12/07/uber_fined_by_french_court/
[14] https://www.theregister.com/2018/12/20/uber_france_400k_euro_fine_for_2016_hack/
[15] https://www.theregister.com/2022/10/06/uber_cso_sullivan_guilty/
[16] https://www.theregister.com/2022/09/16/uber_security_incident/
[17] https://www.theregister.com/2022/07/11/uber_leak/
[18] https://whitepapers.theregister.com/
Re: I really dislike UberEats
I stopped using them after they charged me more than what was shown on the checkout screen, support were completely useless. Got a refund through AMEX in the end.
Re: I really dislike UberEats
Most places still do their own free delivery if they did before UberEats. Different prices on different platforms is nothing new, it's been a thing for ages on platforms like JustEat etc. the premium is there because the platforms increase the reach of the restaurants...getting the restaurant into the eyeballs of a customer that might otherwise never have found them, they also provide better payment processing, accept more cards, might have better security than a janky low budget restaurant website etc etc.
The main difference between using UberEats etc is the *speed* of the delivery. If you use a restaurants own drivers, you might be waiting an hour or so, if you use UberEats, it's within 30 minutes most of the time (at least round here, West London).
You're not paying a premium for nothing, you're paying for speed and convenience...which is true for anything. You are essentially "sending your own man to pick something up" rather than relying on the staff at the restaurant.
If you're at the penny pinching end of the scale, driving to the restaurant and collecting it yourself for a 10% discount will always be a thing. For everyone else there are varying degrees of security, convenience and speed and these have varying associated costs.
It's not unfair that some platforms cost more or add cost to your dinner, that's just how convenience works. You trade in a little bit more of your cash, for a little bit more convenience. Like the different seats on an aircraft. You want a bed, access to the terminal lounge and a better meal? Pay more, fly Business. You don't care about the meal, don't want comfort? Cool, fly economy or go to Blackpool.
Re: I really dislike UberEats
most of the current price increases are not (only) UberEats' fault but more because of the pandemic ... people started to order in much more while at the same time not visiting food places in-person.
Even if the pandemic restrictions have mostly relaxed now, many people have adapted to just ordering in instead of visiting in-person.
While before it was possible to (somewhat) subsidise a part of the costs of delivery from the proffits of the in-person side of business, once that side shrivelled up the companies started to realise the true cost of delivery: time spent, wages, fuel, vehicle costs and spare parts/maintenance.
Also, some will also cover speeding tickets just to meet that 30 (or 60) minutes pizza delivery time that many customers expect... those tickets will also increase the overall delivery costs.
A lot more deliveries to make compared to in-person food serving = a major increase in operational costs that has to be financed from somewhere.
Delivery costs to the end user are that "somewhere".
Never personally ordered a Uber but have travelled in one, when it finally arrived. I order direct with takeaways and generally collect, I can't see the benefit of the increased cost of someone delivering it. I see the drivers sitting waiting for multiple orders at MacDonald's to make it worthwhile- who wants cold food.
drivers sitting waiting for multiple orders
not sure how it will pan out in the long run, but in my neck of the woods (SW Brum) , you can't get a drive through or sit-in meal at any of the McDonalds as the queue of Uber/Deliveroo vehicles spills out onto the road.
2 weeks ago we tried 3 different McDs and couldn't get into any. In the end we came home and made toast.
And our local chippy has a stream of collection orders that they prioritise over in-shop purchases. Well they did last time I went. Which is the last time I went.
Yeah, I don't understand having McD's delivered...it makes no sense for anyone involved. But outside of the chains, its never multiple orders at a time per driver.
I often find UberEats / Deliveroo are faster than in house delivery which means my food arrives hotter. As a bonus, because the driver doesn't want to be held up longer than necessary, you also have a man on the ground speeding things up for you.
As with a lot of services though, these delivery platforms get better over time if you use them regularly rather than just ad hoc as the drivers can see history of interactions which means the better drivers typically start to pick the better customers (higher probability of tips, shorter drive, friendlier, more manageable order size) rather than taking every order that comes their way.
I regularly get the same drivers for UberEats and Deliveroo and if I get those drivers, I know my food will arrive fast and piping hot.
If they readily agreed to pay $26 million, it suggests that it earned them much more than that and they were able to write off that as a "cost of doing business".
Reducing the fine to $14 million suggests the legislation lacks teeth, or that Uber employed a slick lobbying firm who were worth their money.
None of these things pleases me greatly. Especially as it often feels like "big tech" are the modern day robber barons.
I really dislike UberEats
They've insinuated themselves in to markets where they offer no value, yet take a wedge.
In the before time, I'd order a takeout, the restaurants own delivery drive would drop it off, I'd pay menu price and usually be over the minimum for free delivery between the amount ordered for the household.
These days, there's an inflated menu price on the app (vs the instore menu), I have to pay a service fee that's in excess of the previous delivery fee (and often no longer free above a value) and then I'm asked to pay for delivery on top of the service fee, plus another fee if I want to be delivered warm, not have them drop someone else's food off first. If I get my order, a solid third have never materialised which is metrics higher than any issues I'd had before Uber came on the scene (or menulog, or any of their ilk).
They've ruined the customer experience, they've made delivery drivers jobs somehow more hell and they get millions for it, it's not right.
I've stopped using them, but I'm one person, it's not going to matter to them.