That's awesome though the driver isn't getting short changed. Assuming the driver takes the route given they are paid properly.
Passengers are getting screwed on distance but even then since they know the price before they get in they are agreeing to the price prior to entering the vehicle.
I don't think this is illegal.
It's essentially bidding on a lump sum contract based on 2000 hrs of work required and using contractors that can accomplish the work in 1800hrs.
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