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Title: Uber closes a large number of driver accounts over fraud in Chengdu, Beijing
Source: [None]
URL Source: [None]
Published: Sep 26, 2015
Author: staff
Post Date: 2015-09-26 23:17:51 by Tatarewicz
Keywords: None
Views: 11

Want...

Thousands of Uber drivers in Chengdu have gone to the police in an attempt to retrieve money Uber owes them, as the US taxi-hailing app reportedly closed a large number of driver accounts in Beijing and Chengdu due to fraud on the part of some drivers, reports The Beijing News.

Several drivers have taken advantage of the rapid spread of the service in China, as Uber offers drivers large amounts in subsidies compared with other car-booking services in the country.

The system can be cheated in two different ways. One way is if the driver buys a hacked smartphone which can operate with several phone numbers. These numbers can be registered to multiple Uber accounts. Then the driver can use one phone number to request a ride and another number to accept the request, allowing the driver to cash in on the subsidy without having to actually drive anyone anywhere.

Other drivers make arrangements with other people to request rides which they don't intend to take and then split the profits with the fake passenger, as subsidies are often three-times the amount of average fares.

A Uber driver in Beijing, surnamed Li, said he had received around 30 requests from people eager to enter into a deal with him to commit fraud every day.

In June, Uber said that scams account for about 3% of its total rides, which was much lower than competitors and similar to other markets in the initial phase of the roll out of services. If calculated on the base of 1 million deals and 30 yuan (US$4.70) in subsidies per ride, Uber has paid 900,000 yuan (US$141,064) for the 3% of fake rides, a total of 27 million yuan (US$4.2 million) every month, the report said.

Uber China's strategic chief, Liu Zhen, said fraud is an inevitable problem in any O2O (online-to-offline) business model. The company has different tools for detecting false rides and a dedicated team to monitor and enhance the system, Liu added.

Poster Comment:

Usually ripoff is other way round.

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