I tell Uber the exact address at which I should be picked up and dropped off. Taxis don't get nearly that much granularity. Furthermore, one can pay for taxis with cash.
Uber also tracks you before/after, even if you're not using the app.
I can only guess all the reasons why. But it should help them predict supply and demand/gouge you better. It's worth knowing when everybody starts to head for the exits from the Rolling Stones concert. And if you came from there, it's worth knowing to predict what fare you might be willing pay, even if you hail a couple of blocks away from the arena to avoid the crush.
>Uber also tracks you before/after, even if you're not using the app.
You don't have to elect to have background tracking on. Undoubtedly, most users have elected to keep it on but there is the option to turn it off and just type in the pick up and drop off address.
I don't have a problem with anyone knowing when I am at, or near, Grand Central or Penn Stations. I have an issue with a politician knowing I visited the home of a potential rival three times in a week before campaign filings are due.
You can (any probably should) slightly fuzz the addresses you're providing Uber. They're tracking you with GPS before and after your rides anyway, but you might as well make it a little harder for them to track you.