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Uber's in More Hot Water — This Time, for Spying on Its Drivers

April 14, 2017
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3 min read
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Uber's in More Hot Water — This Time, for Spying on Its Drivers
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In case you haven't heard: Uber is not having the greatest year thus far. Between the #DeleteUber movement in January where more than 200,000 Uber users deleted the app, the claims of sexual harassment at the corporate level and more, things could be going a lot more smoothly. Well, it looks like that downward spiral is continuing.

The Information is reporting that the company launched a software-based program called "Hell." The program worked to track down Uber drivers who were also driving for its direct competitor, Lyft. Hell would create fake Lyft rider accounts and fool Lyft drivers into thinking the riders were located around a city. When the Lyft driver would go, Uber would be able to detect where all the Lyft drivers were within a city.

Because it was able to track Lyft drivers' locations, Uber was able to see which drivers were driving for both companies. From there, Uber would use that information to incentivize those drivers to drive more for Uber. For example, Hell would give "double-apping" drivers special bonuses for meeting a select number of rides per week. According to the data Hell uncovered, about 60% of drivers were driving for both Uber and Lyft, and as a result, Uber dished out tens of millions of dollars in bonuses each week.

The program was launched in 2014 and was used to spy on its drivers until 2016. Uber stopped using Hell after Lyft had raised more than $1 billion in funding and expanded its ride-share network to more cities, hence creating more douple-apping drivers. So, Uber stopped the program so it could avoid expending too much in bonuses to its drivers.

Uber CEO Travis Kalanick, who's been under fire after video surfaced of him getting in a heated argument with a driver, reportedly praised employees who ran the Hell program. Kalanick would also reportedly comment on how the Hell program fit the company's culture of "hustle."

If the allegations about the existence of the Hell program prove to be true, the company could face a number of allegations. According to The Information, a law firm that's worked with Uber in the past said those allegations could include unfair business practices, misappropriation of trade secrets, breach of contract and violation of the federal Computer Fraud and Abuse Act.

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.