Apparently people think there's a secret backdoor that lets an iPhone app record audio without turning the status bar red. You could deny mic permission and people would still think it's the secret backdoor.
"Apple gave us this permission because early versions of Apple Watch
were unable to adequately handle the level of map rendering in the Uber
app," an Uber representative, Melanie Ensign, told Business Insider.
"Subsequent updates to Apple Watch and our app removed this dependency,
and we're working with Apple to remove the API completely."
Uber was doing other sneaky stuff to read the devices serial number (or other unique identifiers) and evade Apple's countermeasures, but that's seperate from this.Inside the app I believe they can record whenever, without the banner appearing.