A new study finds Uber is keeping more than half the fare on some rides. House Democrats are fighting a federal provision that could shield Uber and Lyft from assault lawsuits. Uber and Lyft are suing New York City over a law that limits driver deactivations. Lyft built new mapping tools to fix gated-community pickups. We break it all down for you.
Uber Is Keeping More Than Half the Fare in Some Cities, Study Finds
Source: Business Insider
A new analysis found Uber is now keeping more than half of the fare on some rides, well above the 15% to 20% it took about a decade ago. The study, by Columbia Business School’s Len Sherman, reviewed nine years of data from three drivers in Dallas, Miami, and Tampa who together completed about 50,000 trips. It points to one reason many drivers say it has gotten harder to earn a living on the platform.
- Sherman found the gap between what riders pay and what drivers earn started widening in 2019, when Uber cut payouts, and grew sharply in 2022 after Uber switched to upfront pricing, which sets each fare and payout individually for every trip.
- For comparison, secondhand marketplaces like eBay and Etsy say they keep 10% to 15% of each sale. The study did not examine Lyft’s take rate, which neither company reports regularly.
- Uber disputes the numbers, saying it kept 21% of each fare on average in the third quarter of 2025 and that it did not become profitable by taking a larger share of each ride.
House Democrats Fight a Provision That Could Shield Uber and Lyft From Lawsuits
Source: Cleveland.com
More than 120 House Democrats are pushing to strip a provision from a federal transportation bill that they say would shield Uber and Lyft from liability when drivers sexually assault or injure passengers. The language, added to the BUILD America 250 Act by Rep. Vince Fong during a late-night May 22 committee hearing, would let the companies be held responsible only in cases of gross negligence or criminal wrongdoing.
- Fong defends the amendment as an affordability measure, saying insurance costs eat up about a third of a California rideshare fare and nearly half in Los Angeles, and calls it a way to curb frivolous litigation.
- Critics, including Ralph Nader, say the change would override state protections and could undo a California ballot measure that would raise Uber’s liability in sexual assault cases. Opponents also flag retroactive language that could affect cases not yet filed.
- The letter cites a New York Times investigation that found Uber logged a sexual assault or misconduct report in the U.S. roughly every eight minutes between 2017 and 2022, along with recent verdicts, including an $8.5 million Arizona rape judgment in February.
Uber and Lyft Sue New York City Over Driver Deactivation Law
Source: Reuters
Uber and Lyft have sued New York City to block a new law that limits how quickly they can remove drivers from their platforms. Local Law 52 generally bars large rideshare companies from deactivating drivers without a ‘bona fide economic reason’ or ‘just cause,’ and is set to take effect July 28. Both companies argue the law would force them to keep unsafe drivers, including some accused of misconduct, on the road.
- The companies say the law violates their due process and free speech rights. They object to a requirement to give drivers 14 days’ notice and to potentially rehire drivers deactivated since 2019 who did not receive that notice.
- They also object on privacy grounds to a rule requiring passengers to detail alleged misconduct to the accused driver, and to a higher burden of proof when defending deactivations that drivers challenge in court or arbitration.
- As of June 1, Uber faced 3,571 lawsuits and Lyft faced 54 in nationwide litigation accusing drivers of sexual misconduct. City Council sponsors said they expect the law to be upheld and will fight for drivers’ due process.
Lyft Builds Mapping Tools to Fix Gated-Community Pickups
Source: InfoQ
Lyft rolled out a new pickup system aimed at one of the most common headaches in ride-hailing: gated communities. The company says these pickups make up 25% to 30% of rides in some markets and often send drivers to locked or wrong entrances, which leads to longer waits, more back-and-forth, and more cancellations. The new system detects gated areas, points drivers to entrances they can actually use, and lets riders share gate access details up front.
- The tool uses OpenStreetMap data combined with driver feedback to map community boundaries and flag problem pickup spots like apartment complexes.
- Instead of routing a driver to the nearest point on the map, it guides them to a valid entrance, and it offers riders pickup options both inside and outside the gates.
- Lyft says the approach cuts down on manual coordination and improves pickup reliability, and that it plans to reuse the same method for other access-restricted locations.
Waymo Launches a $30 Monthly Subscription
Source: Sherwood News
Waymo, Google’s self-driving unit, is starting a paid membership called Waymo Premier, charging $29.99 a month for invite-only ‘top riders’ in San Francisco, Los Angeles, and Phoenix. Members get priority pickups, 10% back in Waymo Cash, early access to new cities, and five free cancellations a month. Waymo says it built the program for daily commuters who use robotaxis instead of owning a car.
- The move mirrors Uber One, the $9.99-a-month membership Uber launched in 2021, which now has 50 million members and accounts for about half of Uber’s bookings.
- Subscriptions lock in riders and push them to spend more on the platform, which matters more as Waymo expands across the country.
- Waymo is also preparing to launch in London, part of an aggressive push to grow its robotaxi footprint.
QUICK HITS
- Uber is working to acquire full control of Delivery Hero. – Bloomberg
- The World Cup started this week and Uber, Lyft are providing rides to matches. – Gothamist
- Uber executives are selling stock. – Moomoo
- For more coverage of the autonomous-vehicle industry, subscribe to The Driverless Digest, Harry’s newsletter and podcast covering robotaxis and AVs.
Must Listen Or Watch RSG Content
Here are this week’s featured podcast episode and YouTube videos:
- RSG269: This $12K EV Could Change Uber Driving Forever With Bingo Tech
- Uber Will Deny Your Bonus If You Decline Too Many Trips
- Uber & Lyft Drivers NEED A Dash Cam… Here’s Why (With Nexar)
- Is Lyft Hiding Multi-Stop Trips From Drivers?
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