Weekly Round-Up: Rideshare Drivers Sue MULDA Leader

A group of rideshare drivers in Minnesota are suing Eid Ali, the leader of the Minnesota Uber/Lyft Drivers Association (MULDA), Uber will start renting more cars to passengers via Turo, Lyft is copying Uber and will begin verifying riders, and a customer “exposes” delivery fees. We break this all down for you.

Rideshare Drivers Sue Minnesota Uber/Lyft Drivers Association Leader, Alleging Fraud 🚨💸

Rideshare Drivers Sue Minnesota Uber/Lyft Drivers Association Leader, Alleging Fraud
Rideshare Drivers Sue Minnesota Uber/Lyft Drivers Association Leader, Alleging Fraud

Six rideshare drivers have filed a lawsuit against Eid Ali, the leader of the Minnesota Uber/Lyft Drivers Association (MULDA), accusing him of using the nonprofit to enrich himself.

The plaintiffs, including four board members of MULDA, claim that Ali tried to remove them from their positions after they attempted to review the organization’s corporate books.

  • The lawsuit claims he collected “membership” fees of $200 from drivers, amassing over $60,000 within a month.
  • The plaintiffs allege that Ali incorporated two additional nonprofits, “MULDA-RC” and “MULDA,” without their knowledge and changed the articles of incorporation of the original MULDA to state it would have no members despite continuing to accept online payments from the public.
  • Following the passage of statewide minimum pay standards for rideshare drivers in May, Ali allegedly tried to remove the new board members and denied their requests to inspect bylaws and accounting records.

Uber Will Rent Turo Rental Cars To Passengers Via The Passenger App 🚗🤝

Turo and Uber Partnership
Turo and Uber Partnership

Uber announced a multi-year partnership with peer-to-peer car-sharing marketplace Turo, which will allow Uber users to rent vehicles from Turo’s directory directly within the Uber app. The integration, set to launch in early 2025, will expand Uber’s rental arm, Uber Rent, by offering users a wider variety of vehicles to choose from.

  • In this partnership, Turo hosts will set the rental prices, and Uber will take a percentage of the bookings.
  • Uber currently collaborates with major car rental platforms, including Hertz and Avis, to offer in-app car rentals. It is unclear whether these existing relationships would end.
  • The rideshare company also previously operated its own peer-to-peer car rental service, Uber Carshare, which it recently closed.

Lyft Introduces Rider Verification Program to Enhance Security 🔒✅

Lyft Introduces Rider Verification Program to Enhance Security
Lyft Introduces Rider Verification Program to Enhance Security

Lyft is rolling out a pilot program for a new rider verification program aimed at improving driver security and preventing fraud.

The program, which is being rolled out in nine markets, including Atlanta, Chicago, Denver, Detroit, Houston, Jacksonville, Miami, Phoenix, and Seattle, will display a verification badge next to a rider’s profile, indicating that Lyft has confirmed their legal name.

  • Drivers can still choose to accept rides without badges, although Lyft warns that these riders may experience longer wait times.
  • To verify riders’ identities, Lyft will use third-party databases to cross-check personal information such as legal names and phone numbers. In some cases, riders may need to upload official government identification, such as a driver’s license, state ID, or passport.
  • When requesting a ride for someone else, passengers can use the “Change rider” option, and guest passengers must have a Lyft account with a verification badge.
  • Lyft’s program follows a similar initiative launched by Uber earlier this year, which is currently available in 15 cities.

Customer Exposes “Hidden Cost” of DoorDash Delivery. Will This Lead to Fewer Tips for Couriers? 💰❓

DoorDash Exposed
DoorDash Exposed

TikTok user @jrosenix went viral after sharing the “hidden cost” of ordering DoorDash delivery through restaurant apps.

The video, which has received over 500K views, points out that DoorDash not only charges extra fees and requires tipping, but they also upcharge every item on the menu when ordering through their delivery service.

  • The TikToker provided examples from Chick-fil-A and Burger King apps, showing that the prices of meals increased significantly when switching to delivery mode.
  • Many commenters related to the issue, with some stating they had stopped using DoorDash for this reason, while others noted that other services like Instacart also engage in similar practices.
  • Could this type of conversation around the “hidden costs” of delivery lead to fewer tips for drivers? Customers often take out their frustrations around pricing by zeroing out tips. Let us know what you think by replying to this email, and we may feature your comments in next week’s issue of the newsletter!

Why Are Uber Drivers Being Paid Peanuts Around The Globe? 🌍🥜

Drivers Being Paid Peanuts
Drivers Being Paid Peanuts

In Kenya, Uber drivers are taking a stand by protesting and setting their own rates. What has led to this bold move, and why aren’t U.S. drivers following suit?

As independent contractors, Uber drivers operate their own businesses— so shouldn’t they have the freedom to establish their own rates?

Join RSG Senior Contributor Sergio Avedian as he delves into this intriguing news story in the latest installment of “Driver Diary.”

QUICK HITS

A new Forbes article from Columbia Business School’s Len Sherman makes the argument that the FTC needs to investigate Uber for anti-competitive business practices. – FORBES

Lyft will be cutting dockless scooters in Washington, D.C., and is exploring alternatives in Denver as the company deprioritizes dockless scooters going forward. – WSJ

Lyft is once again copying Uber by offering “Pet Rides,” a new feature that will allow passengers to allow pets on trips for a $4 fee. – MSN

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