Uber's location settings on iPhone are "Never" (and the app stops working) or "Always".
They removed the "when app is in use" option a few months ago because ... not really sure.
I think Uber is on Apple's shit-list ever since the device ID tracking incident where Cook dressed down Kalanick directly. I imagine their app updates get extra scrutiny and probably something like this would be caught and denied.
This is not true, at least for the iPhone.