Uber Costly

Getting about a city is no cheap matter and a far cry from my day when one walked everywhere, or in my case rode in style as befitted a King. Todays big cities all boast taxi services, and they are a necessity, despite all the 'public' transport. Back in my day a city was barely a mile across, while today a city like Melbourne will see you still in its bounds after 100 miles. The taxi is an expensive boon. Hardly surprising then that cheaper options find a niche. Hense, 'Uber'.

Taxi drivers are hired hands as most are quite unable to pay the huge fees needed to have a licence. They are not 'free'. You know what they say.... what was once your freedom to do is taken away by Government and you have to buy your freedom back for a licence fee. Often a huge one. 

But those who aspire to own a licence today find that fee falling.  It is a 'transfer fee' mostly as the Gummunt restricts the numbers. If you have one, you sit on an expensive, but diminishing asset.  In Hobart, near where the Tavern sits, a taxi licence will set you back $130,000.  In Sydney it is closer to $400,000. In Melbourne, transfer fees have dropped from $300,000 a few years ago to $200,000 or thereabouts today.

The 'sharing economy' has arrived in Hobart after ploughing its way through assets on the mainland, but all is not well. The 'model' provides a fine enough benefit to the chap who wants to go from A to B, but for few else. Uber itself makes a fortune but not the drivers of the cars it 'approves' (for a fee). Nor does Freedom in general.  In fact some see the 'means' of business by Uber to be a significant threat to personal freedom. Certainly the local governments are feeing aggrieved.

Mike Isaac was in the US room giving his vew as I busied m'self with my evening rounds. I pulled him a pint.

How Uber used secret Greyball tool to deceive authorities in Australia

Uber has for years engaged in a worldwide program to deceive authorities in markets where its low-cost ride-hailing service was being resisted by law enforcement, or in some instances, had been outright banned, including Australia.

Not that it is a secret now. You heard it in the Tavern ! 

The program, which involves a tool called Greyball, uses data collected from Uber's app and other techniques to identify and circumvent officials. Uber used these to evade authorities in Australia, China, South Korea and Italy and in cities such as Paris, Boston and Las Vegas.

 http://www.canberratimes.com.au/business/world-business/how-uber-used-secret-greyball-tool-to-deceive-authorities-in-australia-20170303-guqm23.html

Greyball was part of a broader program called VTOS, short for "violation of terms of service," which Uber created to root out people it thought were using or targeting its service improperly. The VTOS program, including the Greyball tool, began as early as 2014 and remains in use today, predominantly outside the United States. Greyball was approved by Uber's legal team.

Greyball and the broader VTOS program were described to The New York Times by four current and former Uber employees, who also provided documents. 

They spoke on the condition of anonymity because the tools and their use are confidential and because of fear of retaliation from the company.

Uber's use of Greyball was recorded on video in late 2014, when Erich England, a code enforcement inspector for Portland, Oregon, tried to catch an Uber car downtown as part of a sting operation against the company.

At the time, Uber had just started its ride-hailing service in Portland without seeking permission from the city, which later declared the service illegal. To build a case against the company, officers like England posed as riders, opening the Uber app to hail a car and watching as the miniature vehicles on the screen wound their way toward him.

But unknown to England and other authorities, some of the digital cars they saw in their Uber apps were never there at all. 

The Uber drivers they were able to hail also quickly cancelled. That was because Uber had tagged England and his colleagues essentially Greyballing them as city officials based on data collected from its app and through other techniques. Uber then served up a fake version of its app that was populated with ghost cars, to evade capture.

At a time when Uber is already under scrutiny for its boundary-pushing workplace culture, the Greyball tool underscores the lengths to which the company will go to win in its business. Uber has long flouted laws and regulations to gain an edge against entrenched transportation providers, a modus operandi that has helped propel the company into more than 70 countries and to a 

valuation close to $70 billion.

Yet using its app to identify and sidestep authorities in places where regulators said the company was breaking the law goes further in skirting ethical lines and potentially legal ones, too. Inside Uber, some of those who knew about the VTOS program and how the Greyball tool was being used were troubled by it.

In a statement, Uber said: "This program denies ride requests to users who are violating our terms of service whether that's people aiming to physically harm drivers, competitors looking to disrupt our operations, or opponents who collude with officials on secret 'stings' meant to entrap drivers."

Dylan Rivera, a spokesman for the Portland Bureau of Transportation, said in a statement: "We're very concerned to hear that this practice continued at least into 2015 and affected other cities.

"We take any effort to undermine our efforts to protect the public very seriously," Rivera said.

Uber, which lets people hail rides from a smartphone app, operates multiple kinds of services, including a luxury Black Car one in which drivers are commercially licensed. But one Uber service that many regulators have had problems with is the company's lower-cost service, known as UberX in the United States.

Some see Uber as a huge scam.

UberX essentially lets people who have passed a cursory background check and vehicle inspection to become an Uber driver quickly. 

In the past, many cities banned the service and declared it illegal.

That's because the ability to summon a non-commercial driver, which is how UberX drivers who use their private vehicles are typically categorized, often had no regulations around it. When Uber barrelled into new markets, it capitalised on the lack of rules to quickly enlist UberX drivers, who were not commercially licensed, and put them to work before local regulators could prohibit them from doing so.

Hobart Uberman

After authorities caught up, the company and officials generally clashed, Uber has run into legal hurdles with UberX in cities including Austin, Texas; Tampa, Florida; and Philadelphia as well as internationally. Eventually, the two sides came to an agreement, and regulators developed a legal framework for the low-cost service.

That approach has been costly. Law enforcement officials in some cities have impounded or ticketed UberX drivers, with Uber generally picking up those costs on behalf of the drivers. Uber has estimated thousands of dollars in lost revenue for every vehicle impounded and ticket dispensed.

I don't know if any taxi will take you here. Paradise !

This is where the VTOS program and the use of the Greyball tool came in. When Uber moved into a new city, it appointed a general manager to lead the charge. The manager would try to spot enforcement officers using a set of technologies and techniques.

One method involved drawing a digital perimeter, or "geofence," around authorities' offices on a digital map of the city that Uber monitored.

This is where it starts to get nasty.  I had to pull some more pints as folk gathered around.

The company watched which people frequently opened and closed the app, a process internally called "eyeballing", around that location, which signified that the user might be associated with city agencies.

Other techniques included looking at the user's credit card information and whether that card was tied directly to an institution like a police credit union.

Enforcement officials involved in large-scale sting operations to catch Uber drivers also sometimes bought dozens of mobile phones to create different accounts. To circumvent that tactic, Uber employees went to that city's local electronics stores to look up device numbers of the cheapest mobile phones on sale, which were often the ones bought by city officials, whose budgets were not sizeable.

In all, there were at least a dozen or so signifiers in the VTOS program that Uber employees could use to assess whether users were new riders or very likely city officials.

If those clues were not enough to confirm a user's identity, Uber employees would search social media profiles and other available information online. Once a user was identified as law enforcement, Uber Greyballed him or her, tagging the user with a small piece of code that read Greyball followed by a string of numbers.

When a tagged officer called a car, Uber could scramble a set of ghost cars inside a fake version of the app for that person, or show no cars available at all. If a driver accidentally picked up an officer, Uber occasionally called the driver with instructions to end the ride.

Uber employees said the practices and tools were partly born out of safety measures for drivers in certain countries. In France, Kenya and India, for instance, taxi companies and workers targeted and attacked new Uber drivers.

"They're beating the cars with metal bats," Courtney Love, the singer and celebrity, tweeted from an Uber car at a time of clashes between the company and taxi drivers in Paris in 2015. Love said protesters had ambushed her Uber ride and held her driver hostage. "This is France? I'm safer in Baghdad."

Uber has said it was also at risk from tactics used by taxi and limousine companies in certain markets.

Not surprising when they have invested huge outlays to be in the business. 

In Tampa, for instance, Uber referred to collusion between the local transportation authority and taxi companies in fighting ride-hailing services.

In those environments, Greyballing started as a way to scramble the locations of UberX drivers to prevent competitors from finding them. Uber said it remained the primary use of the tool today.

But as Uber moved into new markets, its engineers saw that those same techniques and tools could also be used for evading law enforcement. Once the Greyball tool was put in place and tested, Uber engineers created a playbook with a list of tactics and distributed it to general managers in more than a dozen countries across five continents.

At least 50 to 60 people inside Uber knew about Greyball, and some had qualms about whether it was ethical or legal. Greyball was approved by Uber's legal team, headed by Salle Yoo, the general counsel. Ryan Graves, an early hire who became senior vice president of global operations and a board member, was also aware of the program.

Yoo and Graves did not respond to a request for comment.

Outside scholars said they were unsure of the program's legality. 

Greyball could be considered a violation of the federal Computer Fraud and Abuse Act, or possibly intentional obstruction of justice, depending on local laws and jurisdictions, said Peter Henning, a law professor at Wayne State University who also writes for The New York Times.

Uber going into deep waters

"With any type of systematic thwarting of the law, you're flirting with disaster," Henning said. "We all take our foot off the gas when we see the police car at the intersection up ahead, and there's nothing wrong with that. But this goes far beyond avoiding a speed trap."

To date, Greyballing has been effective. In Portland that day in late 2014, England, the enforcement officer, did not catch an Uber.

So, the downside to cheaper fares is that the drivers get screwed, an industry is taken apart, assets are devalued and Uber has tools and methods to spy on you, and to feed you false information. 

Be careful out there.

It might be better to walk.

Pax