How Uber is being ripped off in China

Beijing

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. Mr 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 US 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 Mr 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.