Previous versions of the app would use the first result returned by Google Directions API, which could have been best not shortest (I'm not sure, anyone know?). Newer version (pending app store review) does shortest always.
This looks like an obvious bug if it is straight line.
Yeah google can show longer but faster route depending on traffic etc.
Also one more thing can be, gps location point and address can point to different locations. Not sure how Uber is showing, or calculating from which one.