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The Shannon Burke Show Listening Thread (Bitch I'm BACK! Edition)
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Will Shannon address Uber sabotaging the competition to keep down wages?‘A special ongoing project’
Earlier this month, CNN reported that Uber employees around the country ordered and then canceled 5,560 Lyft rides, according to an analysis by Lyft. (Lyft arrived at this figure by cross-referencing the phone numbers of users who tried to recruit Lyft drivers to Uber with users who had previously canceled rides.) Uber flatly denied trying to sabotage its competitor: "Lyft’s claims against Uber are baseless and simply untrue," the company said.
"Uber is flat-out lying to their customers."
But one Uber contractor The Verge spoke with said Lyft’s complaint had merit. "What’s simply untrue is that not only does Uber know about this, they’re actively encouraging these actions day-to-day and, in doing so, are flat-out lying both to their customers, the media, and their investors," the contractor said. Until now, the canceled Lyft rides have been understood as a kind of prank call designed to keep competitors’ drivers off the road. But interviews and internal documents suggest another reason: Uber’s recruitment program has vastly increased in size and sophistication, and recruiters cancel rides in part to avoid detection by Lyft.
The ground troops in Uber’s sabotage campaign are the company’s ambassadors, some of whom it hires through TargetCW, a San Diego-based employment agency. For the most part, ambassadors work at events or on college campuses, promoting Uber as a cheap and easy way of getting around town. The primary goal is to recruit riders, not drivers, and Uber calls the activity "slanging." But since at least mid-summer, some brand ambassadors in New York have been turning their talents against Lyft. Using Uber-provided iPhones and credit cards, the contractors hail rides, strike up conversations with their drivers, and attempt to sign them up before they arrive at their destination. (In other cities recruiters travel with "driver kits" that include iPhones and everything else a driver needs to get started on Uber; ambassadors were told New York State does not allow this.) Compensation varies, but contractors can earn a $750 commission for successfully recruiting a single new driver to Uber, according to a contractor.
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