Weekly Round-Up: Klarna Scores Deal With Uber

Klarna, a payment company, is entering into a global partnership with Uber to power their payments to Uber and Uber Eats apps.

Meanwhile, Instacart’s stocks are dropping, Amazon launches a grocery delivery service, and Uber, Lyft, and the Deputy Mayor of Infrastructure for Los Angeles have something to say.

Also, the family of the Lyft driver killed in 2022 is awarded $44 million.

Join RSG Contributor Paula Lemar as she breaks down the top headlines in this week’s rideshare news.

Klarna Scores Major Payment Deal With Uber Ahead Of Hotly Anticipated IPO


Klarna announced a global partnership with Uber on Wednesday to power payments for the ride-hailing giant’s Uber and Uber Eats apps.

Klarna Scores Major Payment Deal With Uber Ahead Of Hotly Anticipated IPO
Klarna Scores Major Payment Deal With Uber Ahead Of Hotly Anticipated IPO.

The partnership will see the Swedish financial technology firm added as a payment option in the U.S., Germany and Sweden, Klarna said in a statement.

In those countries, Klarna will roll out its “Pay Now” option in the two apps, which lets customers pay off an order instantly in one click. Users will be able to track all their Uber purchases in the Klarna app.

My Take

This kind of partnership ahead of Klarna going public will certainly boost its numbers. It sounds like it deals with payments on the customer side of things, not the drivers, so nothing should change for drivers as far as payouts are concerned.

I’ve seen Klarna as an option to make payments on websites before, though I don’t think I’ve ever used that option.

Though if I needed or wanted a flexible payment option, I likely would have gone for it even without knowing much about Klarna to begin with. For this kind of partnership, Klarna will become even better known in the U.S. which will likely help it when it does go public.

It sounds like you can use the app to track and make your payments to Uber and Uber Eats. I’ll be curious to see if things look and feel different once it’s firmly in place.

Uber, Lyft Ask US Supreme Court To Block State Officials From Skirting Arbitration Mandates


In a pair of new petitions to the U.S. Supreme Court, rideshare companies Uber and Lyft are asking the justices to bar state officials from using their enforcement power to seek money for workers or consumers who have signed arbitration agreements.

Uber, Lyft Ask US Supreme Court To Block State Officials From Skirting Arbitration Mandates
Uber, Lyft Ask US Supreme Court To Block State Officials From Skirting Arbitration Mandates.

The petitions, docketed on April 18, could have huge implications if the Supreme Court agrees to hear the case.

Technically, the companies want the justices to review a 2023 California state court appellate ruling that allowed California’s attorney general and labor commissioner to continue litigating claims that Uber and Lyft owe money to drivers who were misclassified as independent contractors.

They contend that the California Court of Appeal – like state appellate courts in five other states – misread a key 2002 Supreme Court decision when it concluded that state officials are not bound by workers’ arbitration agreements.

My Take

As the article states, this seems to be mostly directed at California, which is where the major rideshare and delivery platforms originate. It all comes down to interpretation. That’s the funny thing about laws, the way they are enforced is fully determined by the individual interpretation by the judges, lawyers and lawmakers.

If you plan on taking Uber or Lyft to arbitration, you might want to pay close attention to how this plays out, especially if you’re suing on the grounds of being misclassified as an independent contractor.

Instacart Stock Drops as Amazon Launches Grocery Delivery Service


Instacart stock sold off on Tuesday after Amazon.com began offering a comparable grocery-delivery service that will heat up competition in the already crowded market.

Instacart Stock Drops as Amazon Launches Grocery Delivery Service
Instacart Stock Drops as Amazon Launches Grocery Delivery Service.

Amazon launched a $9.99-a-month service for consumers who are already Amazon Prime members, including unlimited grocery deliveries from Whole Foods and Amazon Fresh for all orders over $35. Other local stores are included in some markets.

As it happens, the terms are the same as those for the Instacart+ subscription service, which likewise is priced at $9.99 a month (or $99 for a full year) for unlimited deliveries of orders of $35 or more.

A difference is that Amazon doesn’t charge any service fees, while Instacart+ members pay fees on every order, though they are smaller than for nonmembers.

My Take

I may be going crazy, but I thought Amazon had a grocery delivery service for years.

I know I’ve ordered groceries from Amazon in the past. I used to do it often, actually, because it was cheaper than Instacart because the delivery fee was waived or at least lessened with Amazon Prime membership.

It sounds like that is either changing, or I remember it incorrectly. I mean, it would have been about 5 years ago that I used the service. It’s probably changed a bunch of times since then, to be honest. Heck, we had a whole pandemic happen in-between.

Family Of Lyft Driver Killed In 2022 Shooting Awarded $44 Million In Wrongful Death Lawsuit


The family of a Chicago man who was killed while driving for Lyft in 2022 has been awarded over $44 million in a wrongful death lawsuit.

Kristian Philpotts, 29, accepted a request for a ride in Urbana on Jan. 12, 2022. During the ride, Philpotts was shot by the passenger, Tyjohn Williams of Champaign, according to criminal charges.

Williams, now 18, is accused of requesting the ride using his mother’s account. He allegedly got inside the vehicle with two other people, pulled out a gun, and shot Philpotts in the back. Philpotts died shortly after.

My Take

I’m glad to hear the family is getting compensation.

Deaths like this are why better and more safety measures are always needed. As you’ll read below, Lyft is implementing rider verification. I’m not saying that would have prevented this from happening, but more safety is better than less.

Drivers take a risk every day, opening up their cars to strangers. The least these platforms can do is verify the identity of the person getting in the vehicle.

Do you think it was Lyft’s responsibility? Share your thoughts on incidents like this and how they should be handled in the comments.

Randall Winston on LA’s Opportunities to Transform Its Infrastructure


Amidst a flurry of bills, executive orders, and local measures reshaping the housing narrative in California and Los Angeles, assessing the true impact of these legislative endeavors remains a challenge.

At a recent Curbivore event, Randall Winston, Deputy Mayor of Infrastructure for Los Angeles, spoke to the attendees, hoping to shed light on the ongoing discourse surrounding LA’s housing landscape and the incoming Capital Infrastructure Plan.

TPR shares here the full address given by Winston, in which he discusses the implications of Executive Directive 1, the supply-demand paradox facing California, and UCLA’s recent acquisition of the Westside Pavilion shopping mall.

My Take

Read the full article to hear from Randall Winston, the Deputy Mayor of Infrastructure for Los Angeles, and what he had to say at this year’s Curbivore event. Curbivore is a conference that discusses commerce at the curb, micromobility, and more.

View Previous Curbivores:
Curbivore 2023 Wrap Up
Curbivore 2022 Wrap Up

Uber or Lyft: Whose Surge is Better?


Are you seeing changes in surge in your market? Let us know in the comments! . . . . . . uber lyft rideshare sidehustles gigeconomy

♬ original sound – The Rideshare Guy – The Rideshare Guy

If you’re unsure who to drive for, check out this TikTok by Sergio to see which surge is better to go after.

Read the comments to see if there’s a different opinion for your market versus what Sergio says. Make informed decisions so you can maximize your earnings.

Also, tune in on Tuesday for an all new Show Me The Money Club video with a segment on Lyft following Uber’s footsteps on rider verification. Catch it live on Tuesday 6pm est/3pm pst.

Uber or Lyft: Whose Surge is Better?

Safety should always be a top priority for these companies. Drivers have been asking for a rider verification requirement for years to ensure basic safety of drivers.

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