[HN Gopher] Uber, Lyft pay $328M for "cheating drivers" out of e...
       ___________________________________________________________________
        
       Uber, Lyft pay $328M for "cheating drivers" out of earnings, NY
       says
        
       Author : rntn
       Score  : 154 points
       Date   : 2023-11-02 18:13 UTC (4 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | ccooffee wrote:
       | The terms of the settlement[0-pdf] are kind of interesting.
       | 
       | Drivers in New York City proper are entitled to $17/hr for sick
       | pay. If I'm reading it correctly, that is also the minimum wage
       | that drivers must be compensated at.
       | 
       | However, drivers who begin trips in New York State _but not
       | inside NYC_ are guaranteed pay at $26/hr [see paragraph 30 of
       | settlement]. If I'm reading this right, drivers in Buffalo,
       | Syracuse, Utica, Albany, etc. are all going to reap significantly
       | higher pay from Uber while living in much lower cost-of-living
       | areas.
       | 
       | [0-pdf] https://ag.ny.gov/sites/default/files/settlements-
       | agreements...
        
         | dastbe wrote:
         | You're reading it wrong, you need to look at
         | https://www.nyc.gov/site/tlc/about/driver-pay-rates.page for
         | the pay rates.
         | 
         | just looking at the per minute numbers, if you worked 60
         | minutes of P2+P3 time you would make 33.84, which isn't even
         | considering the per-mile pay.
        
       | sschueller wrote:
       | Now pay the almost half a billion Swiss Francs you owe in unpaid
       | wages/retirement and sick leave to the Swiss drivers.
        
         | toomuchtodo wrote:
         | Is anything needed to assist the Swiss in pursuing this more
         | aggresively?
        
       | crazygringo wrote:
       | In terms of illegally deducting sales tax and black car fund fees
       | from drivers' pay... I genuinely don't understand why a large
       | corporation ever messes up like this in the first place.
       | 
       | It surely can't be legal incompetence -- a large company like
       | this has lawyers to review these things, and who know the
       | contracts they've created.
       | 
       | But it's hard to imagine Uber/Lyft thinking they're going to get
       | away with it -- obviously it's going to eventually turn into a
       | legal suit and they're going to lose.
       | 
       | I really don't get it. Often these kinds of situations happen
       | when the law is ambiguous or unclear, and the company it taking a
       | calculated risk that the courts would rule in their favor. But
       | this doesn't seem to be that, unless I'm missing something?
        
         | Scoundreller wrote:
         | Maybe it's like Google handing back all the money it made in
         | its early years from advertising gray/black-market pharmacies
         | and prescribing mills.
         | 
         | They needed the money then, and had no problem paying it back
         | in 2011, many years later. And if they went bankrupt, well, no
         | way to pay back anyway.
         | 
         | Classic "heads we win, tails you lose" situation.
         | 
         | Cheaper source of capital than venture capital. And no hit to
         | the cap table.
         | 
         | https://theguardian.com/technology/2011/aug/24/google-settle...
        
         | sitkack wrote:
         | It is fraudulent and stealing, I would think there would be
         | criminal charges against the perpetrators.
        
           | Nextgrid wrote:
           | Fraud/theft only happens to the common man. When a company
           | does it it's either good business acumen or (if they got
           | caught) a "technical glitch affecting a small percentage of
           | users".
           | 
           | See also: Comcast mis-billing customers.
        
           | plagiarist wrote:
           | The perpetrators are corporations, those are only people when
           | it is convenient for the ruling class for them to be people.
        
         | techsupporter wrote:
         | Sometimes it is incompetence; someone flags a certain thing as
         | the wrong classification and it comes out of the wrong bucket.
         | 
         | But I think it's more than that, here. The settlement covers
         | almost the height of when Uber and Lyft were desperately trying
         | to undercut everyone else in the market--taxis, public transit,
         | taking a bike, scooter-share, anything--and keeping these out
         | of view of the customer helps a lot in that effort by making
         | the price look lower.
         | 
         | > The Uber settlement fund is for people who "drove for Uber
         | between November 10, 2014, and May 22, 2017, and had deductions
         | taken for New York sales tax and Black Car Fund fees." The Lyft
         | fund is for people who drove for Lyft between October 11, 2015,
         | and July 31, 2017, and had the same kinds of deductions.
         | 
         | By my mind, it's in the same vein as businesses (everyone from
         | Comcast to that small restaurant on the corner) that list one
         | price in big numbers but tack on surcharges at the end.
         | Obscuring the true price should be more illegal than it is.
        
           | tialaramex wrote:
           | The trouble is that Americans seem to be onboard with not
           | adding taxes, and so that's your slippery slope right there.
           | In Europe regulators are like "If the headline price is EUR10
           | but actually nobody pays EUR10, that headline price is wrong
           | and must be fixed" and they're including taxes in that.
           | 
           | In IT there was a UK battle years back when magazines were
           | still a big deal about whether you could advertise prices
           | without VAT. All these companies charge retail customers VAT
           | of course, but in effect the way VAT works the price is
           | without VAT if you are yourself a business that claims VAT
           | refunds. So the argument in some of these magazines was,
           | look, you can buy this magazine as a hobbyist, you can buy
           | this Western Digital 200MB hard disk from an advertiser as a
           | consumer, and you'd pay VAT. But actually they advertise in
           | our magazine because many readers work in IT, so while they
           | might get 10 hobbyist orders for that 200MB disk, they also
           | get one or two business orders for a hundred drives, and
           | those customers don't pay VAT so why must we show VAT prices
           | ?
        
             | Amezarak wrote:
             | I've never been sympathetic to the American argument that
             | we want people to constantly feel how much they're paying
             | in taxes, but VAT might be a good point in their favor. VAT
             | is very high (20-25% in many countries) and horrifically
             | regressive. It would be a nonstarter for even people like
             | me, who support raising taxes in the US, because of that.
        
               | Mechanical9 wrote:
               | VAT has other benefits though that would fix a lot of
               | weirdness that traditional sales tax has. Taxing the
               | value added makes a lot more sense than taxing the
               | "sale", IMO. It distributes the tax fairly among all
               | businesses in the supply chain and eliminates double-
               | taxing that can happen when the local mom and pop shop
               | resells soda from Sam's Club.
        
               | Amezarak wrote:
               | There is of course no national US sales tax and every
               | state does it differently - some even have no sales tax
               | at all - but generally speaking, it's already structured
               | to prevent double-taxing situations like the one you're
               | describing (plus groceries are usually exempt anyway in
               | both cases.)
               | 
               | The issue is VAT is astronomical compared to the US and
               | hits the poor hardest because consumption taxes are
               | regressive. If it were more apparent on on pricing how
               | much was tax, I could see people who make that argument
               | here having a point. I find it hard to believe Europeans
               | would not blink at seeing such a regressive tax day after
               | day.
        
               | lozenge wrote:
               | It doesn't really matter how regressive an individual tax
               | is as it's part of a larger system.
               | 
               | You don't just pay regressive VAT, you also benefit from
               | progressive income tax, progressive education and health
               | policies, etc.
        
             | gustavus wrote:
             | > The trouble is that Americans seem to be onboard with not
             | adding taxes, and so that's your slippery slope right
             | there. In Europe regulators are like "If the headline price
             | is EUR10 but actually nobody pays EUR10, that headline
             | price is wrong and must be fixed" and they're including
             | taxes in that.
             | 
             | Again the problem is that the taxes are different in every
             | municipality and state which presents a calculating
             | nightmare. I mean you do the math on 0.0625% of $17.23.
             | It's super difficult to do and can change frequently anyone
             | that wants to run a business in more than one or two
             | municipalities would have to hire someone full time. Plus
             | there's the extra headache of running a sale, etc.
             | 
             | It is more helpful to think of the US as 50 different
             | states that have a common federal government rather than a
             | single united whole.
        
               | RF_Savage wrote:
               | If they can charge it, why can't they mark it?
        
               | dboreham wrote:
               | They can and do (airline tickets for example). Most hotel
               | web sites will also give you an "all-in" price, although
               | they retain the dark patterns of displaying the ex-tax
               | rate by default, and slipping in a "resort fee" when you
               | check in.
        
               | brendoelfrendo wrote:
               | Gee, if only ride share apps had access to both your
               | starting and ending locations so that they could
               | accurately assess taxes and fees. This is not an
               | intractable problem when your product is a software
               | platform that can look at the location data and do the
               | math for you.
               | 
               | > anyone that wants to run a business in more than one or
               | two municipalities would have to hire someone full time.
               | 
               | Yes, when you're trying to operate a nation-wide
               | business, you should generally hire accountants and
               | lawyers, or at least consult with them and take their
               | good advice.
        
             | Mechanical9 wrote:
             | Americans also don't know how much their taxes are.
             | Retailers often use taxes to hide extra charges by bundling
             | both into a "taxes and fees" section, which if enumerable
             | always includes more fees than taxes. Uber Eats, GrubHub,
             | etc all do this.
        
         | jzb wrote:
         | "obviously it's going to eventually turn into a legal suit and
         | they're going to lose."
         | 
         | I'm not convinced that's obvious. I'm guessing for every story
         | of "large corporation held to account for breaking wage laws /
         | committing wage theft" there are 5 stories of them _not_ being
         | held to account. (I could be wrong - it could be 2 stories, it
         | could be 10... but I 'm willing to bet they get away with it
         | more than they don't.)
         | 
         | Also - is the amount they pay out more than or even equal to
         | what they grabbed, or less? If I read the settlement correctly
         | this means that there won't be a full investigation, e.g. - a
         | deep dive to find out how much money they actually skimmed.
         | This is a settlement so I don't think they ever actually got an
         | absolute tally of how much money was in question.
         | 
         | I'd also consider that the _corporation_ may face consequences
         | but the individuals who green lit the decisions are unlikely to
         | suffer. In fact, by the time the bill comes due, legally, isn
         | 't there a good chance the folks have already updated their
         | resume with glowing current numbers and moved on to another
         | company? The time period in question was 2014-2017. How many
         | people are even still at those companies from that time period
         | that made these decisions?
        
         | dogsgobork wrote:
         | If they do something illegal and don't get caught they win. If
         | they get caught, but the fine is less than they made breaking
         | the law, they win. If they have to pay back the same amount of
         | money, but can pay it years later, they win. If the only
         | punishment for bank robbery were paying the bank back if you
         | got caught, we'd probably see a lot more bank robberies.
        
           | FireBeyond wrote:
           | > If the only punishment for bank robbery were paying the
           | bank back if you got caught
           | 
           | ... and on a schedule mostly convenient for you...
        
             | polygamous_bat wrote:
             | In the US corporations are people with some extra
             | provisions for robberies.
        
           | brandall10 wrote:
           | The Pinto Memo is a great exposition of this... $140M cost to
           | retrofit a modification to the fuel system against a $50M
           | "benefit to society" (ie. legal costs) saving 180 deaths and
           | 180 serious injuries per annum.
        
           | rqtwteye wrote:
           | Same for US hospitals and health insurance. They constantly
           | make "mistakes" in their favor and the worst thing that can
           | happen is that they have to pay what they are required to pay
           | anyways.
        
         | holoduke wrote:
         | The worse thing of all is that these companies dont care for
         | its drivers. On what kind of earth do we live. Hopefully these
         | kind of companies will be seen as pure evil in history books in
         | 100 years from now.
        
         | wavemode wrote:
         | The way it would usually go is that one or more higher-ups
         | whose job it was to optimize pricing decided to get "creative"
         | with the law. People who eventually noticed that things seemed
         | shady/irregular probably spoke up but their concerns were
         | dismissed (with the same reasoning you mention - "the lawyers
         | probably looked at all of this - of course it must be perfectly
         | legal!") and so they stopped wasting their breath.
         | 
         | (Probably also on some level Lyft felt like they needed to
         | follow suit in order to compete on price in their most populous
         | and important customer region.)
         | 
         | Keep in mind that the lawyers aren't software engineers - if
         | you tell legal that you're doing A but in the code you're
         | actually doing B, they will tell you "A is perfectly legal,
         | keep doing that." They're not going to review the code for
         | themselves.
        
         | solardev wrote:
         | To these companies, the law is just another cost of doing
         | business to be accounted for and amortized whenever possible.
         | If they can feign success in the early years, they get a bunch
         | of investor dollars that they can then use to pay off or bribe
         | their way out of legal situations later, when they're much
         | bigger.
         | 
         | After all, they did get away with it, didn't they? 290 million
         | is like 4% of one quarter's revenue for them, to pay back 6
         | years of operating illegally. Seems like a slap on the wrist if
         | there ever was one.
        
         | akavi wrote:
         | Barring evidence to the contrary (internal emails/discussion),
         | I _definitely_ would assume mistake over malice.
         | 
         | I've worked in Monetization at 3 SaaS cos (admittedly all
         | smaller than Uber, O(100-1000) employees), and at all of them
         | I've seen mistakes of a similar proportion of revenue (~1%)
         | made in both directions (overcharging and undercharging
         | customers) in violation of the letter of our contracts with
         | absolutely zero intent or malice.
         | 
         | Wage law adds _several_ additional layers of complexity beyond
         | that.
        
           | dastbe wrote:
           | at least one cloud provider service over (and sometimes
           | under) charged customers for several years on a particular
           | product due to a misinterpretation of some complex rules. it
           | happens at all orders of magnitude.
        
         | plagiarist wrote:
         | This is a wage theft. From the sheer scale of wage theft going
         | on in this country, yes, they do think they will get away with
         | it. And the punishment if they don't is inconsequential.
        
         | wahnfrieden wrote:
         | Isn't wage theft the most common and largest form of theft? The
         | reputation of business in the US precedes itself
         | 
         | Odd that when this common thievery impacting the hardest
         | working among us shows up among business inclined folks the
         | reaction is oh it must have been in good faith, must be some
         | kind of mistake. When lower stakes lower impact shoplifting
         | occurs, people are immediately discussing punishments and
         | outcries for jettisoning groups of people to preserve our
         | social fabric.
        
         | gen220 wrote:
         | It's a loan to the Uber at t=x, issued by Uber at t=y+x. The
         | interest on the loan is legal fees and penalties. When the
         | value of the money at t=x is greater than the predicted cost of
         | interest, and you aren't bound by ethical scruples, you take
         | the cash.
         | 
         | Sure, a couple drivers might have needed to take out predatory
         | loans to cover their stolen income, but hey at least the
         | company still exists today to fund their future, unbridled
         | income! They should be thankful, actually.
         | 
         | Yep, it is the mental gymnastics of might-makes-right.
        
       | varispeed wrote:
       | Here the UK government addressed this issue by marrying worst
       | elements of employment and self-employment. With the revised IR35
       | rules, a company can bring someone on board as a "deemed
       | employee". This means they have to pay the individual through a
       | fee payer, that deducts employee and employer taxes. However,
       | even though these workers are taxed like employees, they are
       | officially self-employed and therefore do not receive the usual
       | employment rights and benefits. So things like minimum wage don't
       | apply.
        
       | Night_Thastus wrote:
       | It's only a matter of time before Uber and Lyft cease to exist.
       | Lyft lost what, $1.5 billion last year? The trend isn't towards
       | profitability, and they have had plenty of years to work out the
       | kinks and figure out structural issues.
       | 
       | I've said it before, and I'll say it again - if you were to pay
       | for _real_ cost of overhead and to pay the driver, you 'd end up
       | with a price that no customer is willing to pay.
       | 
       | Uber has briefly entered profitability, but only by absolutely
       | shredding any pay to their drivers, who will jump ship
       | eventually.
       | 
       | The reality is that once investors wake up and close their
       | pockets, these companies vanish into dust. It's either that or
       | their drivers will abandon them.
        
         | cozzyd wrote:
         | I almost never use Uber or Lyft rideshare (sometimes on
         | business travel if no reasonable public transport, but since
         | I'm not paying I'm less cost sensitive there), but Lyft runs
         | the bikesharing system in my city, so hopefully that can be
         | salvaged, since I use that lot...
        
         | Scoundreller wrote:
         | My guess is that they're profitable in some regions and losers
         | in others. They don't need to disappear everywhere if they run
         | out of capital to work with.
         | 
         | They probably run real-life experiments to see "what happens if
         | we increase prices 25% in a region" and have a model for how
         | that can be applied everywhere and where they would just have
         | to close up shop if they needed to go into profit-mode instead
         | of maintenance or growth mode.
        
           | potatolicious wrote:
           | I suspect you're right, but there lies the bitter
           | disappointment with these companies.
           | 
           | I'm sure Uber in NYC makes money, and DoorDash in NYC makes
           | money... but _those are also the places where those services
           | have existed for many decades profitably_.
           | 
           | The whole promise was that with [insert handwaviness]
           | technology the business model can be made to work in places
           | where it was never sustainable before (i.e., the suburbs and
           | much smaller cities). This... overwhelmingly hasn't panned
           | out.
           | 
           | I'm generally skeptical of the oversimplistic "you've
           | invented [thing]" complaints that are often leveled at new
           | tech, but in this case... the shoe does seem to fit.
           | 
           | The only places this business model seems to work are places
           | where the business model has _always worked_!
        
         | Nextgrid wrote:
         | > if you were to pay for real cost of overhead and to pay the
         | driver
         | 
         | How come taxis existed then? I find it hard to believe that
         | taxis could turn a profit despite being very low-tech and
         | inefficient compared to Uber.
         | 
         | I wonder if the real reason Uber isn't profitable is more due
         | to "growth & engagement". How much money is wasted on US-salary
         | engineers playing with microservices in their engineering
         | playground or burned on ads?
        
         | AmericanChopper wrote:
         | Terrible take. Rideshare apps aren't going anywhere, because
         | they are strictly better than regular taxis, and demand for
         | taxis isn't going anywhere.
         | 
         | Maybe some individual companies might go bust, and probably
         | rideshare prices will continue to increase towards typical taxi
         | prices, but there's no reason at all to think the apps are
         | going anywhere.
        
           | Night_Thastus wrote:
           | The _demand_ for rideshare apps is enormous. It 's the only
           | thing keeping investors interested.
           | 
           | But there's no way to make them profitable as it stands.
        
             | AmericanChopper wrote:
             | Of course there is, once the investor subsidies go away
             | they won't have to compete on price so much, and prices
             | will go up.
             | 
             | All of the services that rideshare apps offer were highly
             | demanded before the apps existed, and they were all
             | delivered at more expensive prices with perfectly decent
             | profit margins.
             | 
             | If VC money stops funding these products, then the prices
             | have to go up to something similar to "traditional" prices
             | for those services, but consumers will still choose to use
             | the apps, because the service they provide will still be
             | substantially better than the traditional service.
        
               | freeone3000 wrote:
               | Traditional services have gotten way better -- in that,
               | they got an app. Teo went from an obscure local taxi
               | service to a great local taxi service, and now
               | _undercuts_ uber because they don't have an insane
               | advertising burn to subsidize.
        
             | reducesuffering wrote:
             | Uber Rides are profitable and subsidizing Uber Eats growth.
             | Any take that "Uber will cease to exist" is farcical.
        
           | BeetleB wrote:
           | > Rideshare apps aren't going anywhere, because they are
           | strictly better than regular taxis, and demand for taxis
           | isn't going anywhere.
           | 
           | I've had poor experiences with Uber/Lyft at airports. Taxis
           | are way better. Sometimes there's not enough luggage space in
           | the car for my luggage, and I won't know that until _after_ I
           | 've called them and waited a long time. If I cancel, I end up
           | paying.
           | 
           | (And it's not about me picking a small car - they've got a
           | lot of their personal stuff in the trunk so the capacity is
           | smaller).
           | 
           | Also, plenty of rude Uber/Lyft drivers ("Hey! You were on the
           | wrong side of the road! I could get in trouble for picking
           | you up on the other side of the road!").
           | 
           | We're talking about a single lane each way road, and I went
           | to the other side because I knew he was coming from that
           | direction.
           | 
           | Still, being able to call one via an app is convenient
           | compared to taxis.
        
             | dboreham wrote:
             | > Uber/Lyft at airports
             | 
             | That's only because their software lacks the necessary
             | feature (select driver based on imminent arrival at the
             | curb, from a queue of arriving drivers).
             | 
             | Since that feature doesn't seem hard to implement,
             | presumably the underlying reason is regulations to do with
             | airport pickup.
        
         | xyst wrote:
         | Their success is largely due to the fact that American cities
         | are built so poorly. Emphasizing suburban sprawl and associated
         | highway, parking, and street infrastructure over safe and
         | walkable/bikable cities.
         | 
         | Also investor subsidies due to low interest loans or cheap
         | money from banks. Although that is quickly going away.
         | 
         | If it weren't for these two items, Lyft/Uber would just be
         | another mediocre taxi service.
        
           | rightbyte wrote:
           | Their success is due to the taxi medallion system.
        
       | gumballindie wrote:
       | I am wondering how much of silicon valley "success" is just theft
       | and lies? Yesterday's unicorns, today's ai, all seem to gravitate
       | around shady practices.
        
         | CoastalCoder wrote:
         | This reminds me of a line from the movie Sneakers, by one of
         | the bad-guy-company stooges.
         | 
         | It was something like, "Remember when computers used to be
         | fun?"
        
         | dralley wrote:
         | Don't forget ZIRP. Lots of startups are ultimately built on
         | selling dollar bills for 75 cents.
        
       | seneca wrote:
       | It's not cheating anyone when both parties knowingly agree to the
       | terms. This is just heavy handed regulation that destroys options
       | for workers and consumers.
        
         | CoastalCoder wrote:
         | But in this case, Uber/Lyft were breaking workers' _unwaivable_
         | legal protections.
         | 
         | It's analogous to saying that robbery at gunpoint isn't
         | "cheating", because both sides agree to the terms. Technically
         | it's not "cheating", but that's not the aspect most people care
         | about.
        
           | salamanderss wrote:
           | The Uber driver is basically a business owner fulfilling
           | contracts to customers brokered through an online
           | clearinghouse. They're hyper capitalists exploiting
           | regulatory advantages over taxi drivers then sad face at the
           | downsides to that.
        
             | throw_m239339 wrote:
             | > The Uber driver is basically a business owner fulfilling
             | contracts to customers brokered through an online
             | clearinghouse. They're hyper capitalists exploiting
             | regulatory advantages over taxi drivers then sad face at
             | the downsides to that.
             | 
             | No they are not, otherwise they could freely set the fare
             | and the market would decide the final price, not Uber or
             | Lyft. Clearly that's not the case here.
        
         | jkaplowitz wrote:
         | Both parties did not knowingly agree to the terms. From the
         | article, quoting the office of NY Attorney General Letitia
         | James:
         | 
         | > From 2014 to 2017, Uber deducted sales taxes and Black Car
         | Fund fees from drivers' payments when those taxes and fees
         | should have been paid by passengers. Uber misrepresented the
         | deductions made to drivers' pay in their terms of service,
         | telling drivers that Uber would only deduct its commission from
         | the drivers' fare, and that drivers were "entitled to charge
         | [the passenger] for any tolls, taxes or fees incurred," though
         | no method to do this was ever provided via the Uber Driver app.
        
         | plagiarist wrote:
         | Libertarianism, the perfect economic system in which nothing
         | can go wrong.
        
       | xchip wrote:
       | Bad use of the quotes, it looks like were the drivers who were
       | cheating, and it was Uber and Lyft.
        
       | salamanderss wrote:
       | Isn't Uber/Lyft a broker/market? Wouldn't it be the driver
       | cheated himself, or the passenger contracting the driver cheated
       | him?
        
         | dboreham wrote:
         | Labor laws say you can't declare the drivers to be corporate
         | entities. Presumably because employers would use that as a way
         | to circumvent employment law.
        
       | not_enoch_wise wrote:
       | And we would have gotten away with it, too, if it weren't for you
       | meddling regulations!
        
       | unethical_ban wrote:
       | Ars' title should have "cheating" drivers, or "cheating drivers
       | out of earnings", not "cheating drivers" out of earnings.
        
       | TrackerFF wrote:
       | When your business (model) is built around skirting labor laws,
       | you either become big and powerful enough to change those laws to
       | your own advantage, or you pay the piper when that time comes
       | around, and pivot/change your business model...or simply cease to
       | exist.
        
       | decafninja wrote:
       | Always love how any thread on Uber or Lyft inevitably contains a
       | debate about Uber/Lyft versus taxicabs and how someone's have had
       | bad experiences and vow never to use one or the other.
       | 
       | Also inevitably someone chiming in about how cars in general are
       | evil incarnate and everyone must convert to public transportation
       | and bicycles.
        
         | mcbrit wrote:
         | ?
         | 
         | You haven't engaged with even ONE concrete argument; ideally,
         | you would scan all arguments and engage with in good faith the
         | very best argument. Or alternatively just say: nope, not
         | interested.
         | 
         | But you just strawmaned against nothing. Not so great.
        
         | lbrito wrote:
         | Never seen anyone classifiy personal cars as evil incarnate.
         | Extremely damaging to humans, inefficient and full of negative
         | externalities, yes.
         | 
         | Alas this has nothing to do with the post.
        
       | j-bos wrote:
       | The quotation marks in the headline make it sound like uber lost
       | money to fraudulent drivers, rather than the actual story, the
       | drivers were the ones ripped off.
        
         | Vicinity9635 wrote:
         | Quotation marks in headlines normally mean they're quoting a
         | source. The disengenuous "scare quotes" are a recent
         | degradation in journalistic integrity, which ars isn't doing
         | here.
        
       | renewiltord wrote:
       | Do I understand this correctly?
       | 
       | Customer pays $100 for service, Uber takes (say) $45 => Driver
       | allocation is $55. Uber now collects $10 tax from here and gives
       | the driver $45.
       | 
       | That's wrong because the passenger should be paying the sales
       | tax. So the right way to do it is
       | 
       | Customer pays $100 for service + tax, which is $90.91 service +
       | $9.09 tax. Uber takes (same ratio) $40.90. Driver allocation is
       | now $50.01.
       | 
       | Okay, so the accounting was wrong here. That makes sense. Does
       | this mean that Uber will be going back to get that extra taxed
       | money back from the government if they paid it?
        
       ___________________________________________________________________
       (page generated 2023-11-02 23:00 UTC)