Weekly Roundup: Uber Leans on Driver Supply and a $10 Billion Robotaxi Bet

Uber says it is spending to put more drivers on the road, even as it commits $10B to robotaxis. Lyft’s CEO argues robotaxis are helping its business, not killing it. Waymo is pulling its cars out of Uber’s exclusive grip in Austin and Atlanta. Maryland wants to fine the app Empower more than $36 million. We break it all down for you.

Uber Leans on Driver Supply and a $10 Billion Robotaxi Bet

Uber app and driver supply
Image source: Uber newsroom

SOURCE – CNBC

Uber’s latest quarter showed steady growth in overall bookings, with revenue of $14.77 billion topping the $14.69 billion expected, while earnings per share came in at 25 cents, down from 96 cents. Uber CEO Dara Khosrowshahi said the company has more demand than it can serve, especially for rides, and is “investing significantly” to bring more drivers on board in the US, India and Brazil rather than raise prices or let wait times climb.

  • Khosrowshahi pointed to elevated fuel prices and tighter driver availability as drags on supply in several international markets, and said Uber is making targeted investments to strengthen the driver pool. Mobility was slightly soft overseas while delivery and freight carried the quarter.
  • On automation, Uber has committed about $10 billion to put more driverless vehicles on its platform through partnerships and investments in companies like Rivian, Nuro and AVRide.
  • Delivery keeps expanding through acquisitions, including Delivery Hero in Germany and ezCater in the US.

Lyft Says Robotaxis Are Helping, Not Killing, Its Business

Lyft rideshare car
Image source: Lyft newsroom

SOURCE – Benzinga

Lyft reported a surprise third-quarter net loss of $9.7M, or 3 cents per share, after taking a $117.9M charge tied largely to its settlement over California driver classification, even as gross bookings rose 17% to a record $5.6B and revenue climbed 8% to $1.82B, which still missed analyst expectations of $1.92B.

  • Lyft CEO David Risher told investors that robotaxis are not denting the company’s business, and that Lyft is actually growing in cities where robotaxis operate, including Austin.
  • He said AV fleets are still small and spread out, so longer waits push riders back to Lyft, and the technology is adding to the market rather than replacing it.
  • Lyft also launched Lyft Go, a $9.99-a-month membership built with DoorDash that gives 8% back in credit on rides and delivery and waives DoorDash delivery fees; DashPass subscribers get access by linking accounts. It lands as Uber pairs Uber Eats with Amazon Prime, waiving delivery fees on orders of $25 and up.

Waymo Will Pull Its Robotaxis Off Uber’s Exclusive in Austin and Atlanta

Waymo Jaguar I-Pace robotaxi in San Francisco
Image source: Waymo Jaguar I-Pace robotaxi in San Francisco, photo by Dllu via Wikimedia Commons, licensed under CC BY 4.0.

SOURCE – Bloomberg

Waymo Co-CEO Tekedra Mawakana said the company will end its exclusive robotaxi partnership with Uber in Austin and Atlanta and launch its own app in those two cities in January 2028. She framed the move as a response to riders who wanted a consistent way to get a self-driving car.

  • Today, riders in Austin and Atlanta can only hail a Waymo through Uber, where choosing an autonomous ride is a gamble; they can request one but get matched only if a vehicle is nearby. Mawakana called the early setup “a little bit of a crapshoot” and said customers in markets like San Francisco, where Waymo runs its own app, want that direct relationship.
  • Uber said it had asked Waymo to add an easier way to select an AV ride in the two cities, and Waymo declined.
  • The split points to a bigger question for Uber and Lyft: as Waymo and Tesla lean on their own apps instead of the ride-hailing networks, the platforms’ role as middlemen for robotaxis looks less certain.
Baltimore, Maryland skyline
Image source: Baltimore skyline, photo by Quintin Soloviev via Wikimedia Commons, licensed under CC BY 4.0.

SOURCE – The Baltimore Banner

Maryland regulators are pushing for more than $36M in civil penalties against Empower for keeping its software running after the state ordered it to stop. Consumer advocates also want to add $1 million for every additional day the company keeps operating. Empower bills itself as a technology platform that connects independent contractor drivers, who provide their own commercial insurance, to customers.

  • Regulators say they cannot verify that Empower drivers are properly licensed and covered, which could leave drivers and passengers effectively uninsured during a paid ride.
  • Empower has refused to register as a transportation provider, arguing its model is fundamentally different and should not face the same rules.
  • A law judge ordered the company to cease operations in July, and the Public Service Commission made that order final on Friday.

The Insurance Behind Your Ride Is Shrinking, and Robotaxis Inherit the Same Rules

Los Angeles freeway traffic
Image source: Los Angeles freeway traffic, photo by 4X4 Blazer 1776 via Wikimedia Commons, licensed under CC BY 2.0.

SOURCE – Inc.

A change in California law has sharply cut the insurance protection riders carry in a rideshare crash, and similar rollbacks are spreading to other states and to robotaxis. Since January 1, when an uninsured driver injures a California rideshare passenger, the coverage behind that ride is $60,000 per person and $300,000 per incident, down from $1 million.

  • The California cut passed as part of a package that also gave drivers a path to unionize. The same thinner coverage now reaches autonomous operators.
  • Rules vary sharply by state. In Texas, drivers can waive uninsured-motorist coverage in writing, and Uber’s Texas certificate lists none; when the Uber driver is not at fault, a Texas rider can be left relying on the other driver’s policy.
  • A separate proposal in Congress would limit a rideshare company’s liability to its own gross negligence, turning each trip’s insurance from a floor into a ceiling.

QUICK HITS

  • DoorDash has instructed company employees not to connect with Instacart employees, on the heels of DoorDash’s recent announcement it has acquired Instacart. – Business Insider
  • Some grocers are not happy about the deal. – Business Insider
  • Illinois became the third state, after Massachusetts and California, to let Uber and Lyft drivers unionize and bargain collectively. – Center for American Progress
  • For more coverage of the autonomous-vehicle industry, subscribe to The Driverless Digest, Harry’s newsletter and podcast covering robotaxis and AVs.

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