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One Driver Explains How He Is Helping to Rip Off Uber in China

Discussion in 'Uber Drivers Forum' started by Dreamer, Jun 28, 2015.

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  1. Dreamer

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    Staff Member

    Jan 19, 2015
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    James Li was unhappy with his pay as a security guard in Shanghai, so he started driving on weekends for Uber Technologies Inc. He’s almost tripled his pay -- in part by scamming the company.

    Li, an alias since he feared retribution if his real name was made public, is taking advantage of Uber’s efforts to break into the China market. The U.S. car-booking company is spending millions on free rides and driver bonuses, betting the cash will help train China drivers and market Uber services to customers.

    Instead, people like Li have figured out how to cash in on Uber’s largesse without giving anyone a ride. He’s part of a cottage industry that has developed so drivers can use modified smartphones and software to place fake bookings and trick Uber into paying out cash for phantom trips.

    While there are no reliable estimates on how prevalent the scams are, interviews with Uber drivers, equipment vendors and reviews of postings on dedicated online forums suggest at least some of the $1 billion that Uber has pledged to spend to expand the service in China this year is being siphoned off by fake bookings. The scams may be counted among the number of trips Uber claims in China, a figure the company said reached almost 1 million per day in a letter this month to shareholders.

    Harry Flashman likes this.
  2. Harry Flashman

    Harry Flashman
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    Staff Member

    Jun 8, 2015
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    So James Li turned uber into a cash cow. with so many people in china,this could really hurt.
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