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Which potentially could give them the feedback of answering the question "how close to their actual destination did their uber driver drop them off?"

no that was "legal" in the sense that they forced users to turn on location and they stated they would track you up to 5 minutes after you left your uber, for "safety" reasons.

this article is talking about something else it seems.

Or possibly the author is mistaken, as happens so often in tech journalism.

I'm not going to defend Kalanick, but I'm through with getting emotionally worked up by news articles.

That's a lot more plausible. Tracking after you've deleted the app would be pretty surprising.