Weekly Round-Up: Feds Crack Down on Uber Fraud Scheme, “Screwber” Masterminds Charged

The federal government cracks down on an Uber fraud scheme, rideshare is replacing more sustainable transit options, Alto brings W2 employees to the Uber platform, Waymo surpasses 100K rides per week, and a data breach affects Uber Pro debit card holders. We break it all down for you.

Feds Crack Down on Uber Fraud Scheme, “Screwber” Masterminds Charged 🚨👮

Screwber App
Screwber App

SOURCE – AMNY

Federal prosecutors have charged two individuals for allegedly defrauding Uber, its drivers, and customers using a hacked app called “Screwber.” The scheme, which lasted six years and generated approximately $40 million in ill-gotten gains, allowed drivers to cherry-pick lucrative fares and skip virtual airport queues.

  • The defendants sold smartphones pre-installed with the “Screwber” app to 800 Uber drivers, enabling them to learn a customer’s destination and fare before accepting a ride. Another app, “Fake GPS,” allowed drivers to “spoof” their location and accept rides with surge pricing ahead of closer drivers.
  • Uber confirmed that it was a victim of the scheme and stated that the alleged fraud by the 800 bad actors not only took money from hardworking drivers but also forced the company to limit access to work for tens of thousands of TLC drivers.
  • The scheme was partially responsible for a decrease in Uber’s “utilization rate,” which led to an increase in driver “lockouts,” preventing them from accessing the app and earning fares.
  • The defendants have been released on bond after pleading not guilty to the charges, which could result in up to 40 years in jail for each of them.

Study: Over 50% of Uber, Lyft Trips Replace Greener Options, Worsen Sustainability 🚗🍃

Uber Lyft Trip
Uber Lyft Trip

SOURCE – TechExplore

A University of California, Davis study has revealed that more than half of rideshare trips in California replaced more sustainable transportation options, like walking, cycling, carpooling, and public transit, or created new vehicle miles.

  • The study discovered that people without a car at home were more dependent on Uber and Lyft for essential trips versus using sustainable transit options. They were less likely to cancel their ride if the service was unavailable, suggesting that ride-hailing was a necessity rather than a choice for them.
  • To improve sustainability, the researchers recommend better integrating rideshare with public transit in low-demand areas and prioritizing shared rides in electric vehicles.
  • The study’s findings may not fully reflect the current reality of rideshare trends. The data analyzed in the study was collected from riders in San Francisco, San Diego, and Los Angeles between November 2018 and November 2019, before the pandemic.

Uber Partners with Alto, Introducing W2 Rideshare Drivers to the Platform 🤝🚘

Alto Uber partnership
Alto Uber partnership

SOURCE – @RideAlto on X.com

Uber has formed a strategic partnership with Alto, a rideshare service that operates in Dallas, Houston, Los Angeles, and Miami. Unlike Uber’s current model, which relies on independent contractors, Alto employs its drivers as W2 employees and owns all the vehicles in its fleet.

  • This partnership means that Alto’s W2 drivers will soon be available on the Uber platform, likely during periods of high demand. Alto drivers receive guaranteed hourly pay versus pay per ride.
  • However, the introduction of Alto’s W2 drivers may have implications for Uber’s existing independent contractor (IC) drivers. With more vehicles on the platform, there is a potential for reduced earnings for IC drivers due to increased competition and a larger supply of available drivers.
  • The move is similar to Uber’s existing partnerships with cab companies, which also dispatch their vehicles during high-demand periods.
  • As Uber continues to expand its partnerships and introduce new supply to the platform, it remains to be seen how this will impact the earnings and opportunities of its traditional IC driver base.

Waymo Surpasses 100K Paid Rides Per Week 🚀🎉

Waymo One
Waymo One

SOURCE – @TechTekedra on X.com

The co-CEO of Waymo, Tekedra Mawakana, recently announced that the company has achieved a significant milestone by providing over 100,000 paid rides per week. While the milestone is significant for a robotaxi company, it still pales in comparison to Uber and Lyft’s ride volume.

  • Waymo, backed by Alphabet/Google, began offering paid rides to the public in the Phoenix, Arizona area in October 2020 through its Waymo One service. Prior to this, the company had been giving free rides with select test riders since 2017.
  • To put Waymo’s 100K weekly rides into perspective, it is essential to compare this number to Uber and Lyft’s ride totals. As of Q4 2024, Uber reported an average of 28 million trips per day globally, while Lyft provided around 2 million rides per day in the United States alone.
  • While Waymo’s current ridership is significantly lower than these established players, it is important to note that Waymo is operating in limited geographical areas, just a handful of U.S. cities, and is still in the early stages of commercialization.

Evolve Bank & Trust Suffers Data Breach Affecting Uber Pro Debit Card Holders 🏦🔐

Uber PRO debit cards hacked
Uber PRO debit cards hacked

SOURCE – YouTube

Evolve Bank & Trust, the issuer of the Uber Pro debit card, has recently fallen victim to a ransomware attack by the criminal organization LockBit. The Uber Pro Card, a business debit Mastercard with an associated bank account, is designed exclusively for drivers and couriers who use the Uber Driver app, offering cash back on gas purchases based on the user’s Uber Pro status.

Senior RSG Contributor Sergio Avedian looks into the hack and how it’s affecting drivers in his latest installment of “Driver Diary!”

QUICK HITS

Should rideshare drivers be allowed to display political statements on their vehicles? A recent complaint from an Uber passenger about a driver’s “Free Palestine” decal highlights this complex issue. Harry chimed in on this on X.com and gave his thoughts. What are yours? – @TheRideshareGuy on X.com

Ready to shift gears from your rideshare hustle? Scale is seeking inside sales representatives – a flexible, no-cold-calling gig that’s ideal for rideshare drivers looking for a change. Feel free to reach out to harry@therideshareguy.com if you have more questions about the gig! – Scale Jobs

Uber Eats and robot delivery company Coco have struck a deal to bring Coco’s autonomous delivery vehicles to the Uber platform. – Street Insider

Must Listen Or Watch RSG Content

Here are this week’s featured podcast episode and YouTube videos: