Weekly Roundup: Rideshare Passengers Are Turning To Facebook Groups

Rideshare passengers are finding ways to avoid high fees on the Uber and Lyft platforms. Grubhub settles an FTC lawsuit over deceptive practices. Avis will phase out its gas-powered Uber driver vehicle fleet. Uber sues Seattle over gig worker deactivation ordinance. We break it all down for you.

Rideshare Passengers Are Starting to Turn to Facebook Groups to Bypass App Fees

SOURCE – USA Today

Rideshare passengers and drivers in Rochester, NY, are increasingly using Facebook groups to arrange rides outside of official Uber and Lyft apps. This trend is driven by concerns over surging prices for passengers and high fees for drivers.

  • Safety concerns have emerged regarding rides arranged through these Facebook groups, as these drivers may not have undergone the same verification processes required by official rideshare platforms.
  • While this workaround provides a potential solution for both drivers and passengers to avoid high fees, many drivers lack the necessary commercial insurance that would protect passengers in case they get into an accident while on a ride.
  • Drivers report that ride-sharing apps sometimes take more than 50% of their fares, while passengers complain about the price of rideshare trips skyrocketing over the past few years.

Grubhub Settles FTC Lawsuit for $25 Million Over Deceptive Practices

SOURCE – CNBC

Grubhub has agreed to pay $25 million to settle a lawsuit filed by the Federal Trade Commission and Illinois Attorney General, addressing allegations of unlawful practices that harmed diners, workers, and small businesses. The settlement aims to rectify issues related to deceptive fees, unauthorized restaurant listings, and misleading information about driver earnings.

  • The original judgment was $140 million, but due to Grubhub’s financial situation, it was reduced to $25 million, most of which will be used to refund affected consumers.
  • Grubhub allegedly listed up to 325,000 unaffiliated restaurants on its platform without permission, often resulting in higher fees for diners and damaging restaurant reputations.
  • As part of the settlement, Grubhub must eliminate surprise fees, stop listing unaffiliated restaurants, increase transparency about driver earnings, and simplify membership cancellation processes.

Avis to Phase Out Gas-Powered Uber Fleet, Shift to Electric Vehicles in 2025

SOURCE – /r/UberDrivers on Reddit

According to a conversation on the /r/UberDrivers subreddit, Avis rental service plans to auction off its entire gas-powered Uber fleet and transition to offering only electric vehicles for Uber drivers starting in January 2025. This move aligns with Uber’s push towards electrification but raises concerns among drivers about charging infrastructure and potential impacts on earnings.

  • Uber drivers renting from Avis will have a choice of three electric vehicle models based on availability. It is unclear exactly which models will be available.
  • Some drivers argue that renting EVs may be less cost-effective than owning efficient gas or hybrid vehicles, particularly when relying on public charging stations.
  • Many drivers express concerns about increased downtime for charging and potential loss of earnings, especially in areas with limited charging infrastructure.

Uber Sues Seattle Over Gig Worker Deactivation Ordinance

SOURCE – Courthouse News Service

Uber has filed a lawsuit against Seattle, challenging a new ordinance that restricts how the rideshare companies can deactivate app-based workers’ accounts. The company argues that the ordinance, set to take effect on January 1, 2025, violates its constitutional rights and could compromise user safety and privacy.

  • The ordinance would require rideshare companies to share deactivation records with the city’s Office of Labor Standards and must provide a clear explanation for the action.
  • The company claims the new rules could compromise user safety and privacy by requiring the disclosure of sensitive customer information and potentially allowing problematic workers to remain active on the platform.

InDrive VS Uber – Who’s Better?! | Driver Diary with Sergio

SOURCE – YouTube

InDrive is expanding, but how does it compare to Uber and Lyft? RSG Senior Contributor Sergio Avedian took a trip to Tampa, InDrive’s newest market, to evaluate the passenger and driver experience. In his latest “Driver Diary with Sergio,” Sergio reviews his experience as a passenger of InDrive and how it stacks up against the incumbent rideshare companies. Watch the video and find out!

QUICK HITS

  • DoorDash is rolling out drone deliveries in the Dallas-Forth Worth area. – The Verge
  • Uber and its CEO, Dara Khosrowshahi, have each donated $1 million to President-elect Donald Trump’s inauguration fund. Uber also donated $1 million to President Biden’s inauguration in 2021. Khosrowshahi didn’t donate to that event.. – WSJ
  • Rapido, a leading rideshare app in India, has patched a data vulnerability that had potentially compromised the private details of its customers and contracted drivers. – TechCrunch

Must Listen Or Watch RSG Content

Here are this week’s featured podcast episode and YouTube videos: