Uber wants to cut driver pay in New York City. Rideshare drivers in Massachusetts now have unionization rights. DoorDash posts its first profit since going public. Consumers can’t give up delivery apps. Uber’s real threat is not robotaxis. We break it all down for you.
Uber Proposes to Cut NYC Driver Pay by 6.1% 🚗📉💸
SOURCE – Bloomberg (Paywall free)
Uber sent a petition to the New York City Taxi and Limousine Commission (TLC) to reduce the per-mile rate in its driver pay formula by 6.1%. Uber says it wants to cut rates because of drops in gas and used car prices. Uber said the move would ensure “riders can continue to afford trips.”
- The proposal includes capping future inflation-based pay adjustments at 3% or aligning with the Consumer Price Index to help manage ride costs.
- The proposed driver pay cuts would reduce the fare for an average trip by 42 cents. To put things in perspective, a $15 fare would be reduced to around $14.
- The TLC, which is already reviewing multiple stakeholder suggestions, plans to introduce new rules addressing loopholes and driver pay protection, as rideshare lockouts have challenged drivers’ financial stability.
Rideshare Drivers in Massachusetts Now Have Unionization Rights 🚘✊🤝
SOURCE – The New York Times
Rideshare drivers in Massachusetts have won the right to unionize through a statewide ballot initiative, marking a significant first in U.S. gig worker legislation. The measure, passed by a 54% to 46% vote, allows Uber and Lyft drivers to form unions with collective bargaining power while maintaining their status as independent contractors.
- The initiative drew mixed reactions from labor advocates who fear it might hinder efforts to reclassify drivers as employees with protections under the National Labor Relations Act.
- Notably, the measure does not provide strike protections or extend to food-delivery drivers.
- The initiative establishes a process for drivers to address unfair work practices through a state board.
- Uber and Lyft showed no opposition to the initiative, though Uber highlighted the narrow vote margin as a sign of voter reservations and urged further legislative action to address concerns.
DoorDash Posts First Profit Since Going Public, Projects Strong Q4 Profit 📈📊💼
SOURCE – Reuters
For the first time since its IPO in late 2020, DoorDash reported a profit while also surpassing quarterly revenue estimates. The delivery company has also forecasted a robust fourth-quarter core profit, exceeding market expectations, driven by anticipated holiday demand for online delivery of items ranging from groceries to beauty products.
- For the fourth quarter, DoorDash anticipates adjusted EBITDA between $525 million and $575 million, with the midpoint surpassing the estimated $544.8 million. The gross order value is expected to be between $20.6 billion and $21 billion, aligning closely with market projections.
- DoorDash has expanded its platform offerings beyond restaurant and grocery delivery, forming partnerships with brands such as Sephora and grocer Wakefern.
- This strategic expansion has contributed to an 18% increase in total orders, reaching 643 million in the latest quarter.
Despite Rising Costs, Consumers Can’t Give Up Delivery Apps 🛍📱💰
SOURCE – Business Insider (Paywall free)
Despite rising costs, demand for food delivery remains high as consumers continue to prioritize convenience and time-saving solutions. Research highlights that the cost of delivery can nearly double compared to dining out or picking up meals due to additional fees, taxes, and tips.
- Post-pandemic, ordering food has become a habit akin to the enjoyment of restaurant meals at home, fueled by convenience and changes in dining habits.
- The rise of remote work and streaming services supports this trend.
- Experts, including Oliver Wright from Accenture, assert that time scarcity influences spending; consumers are willing to pay premium prices to save time. This mental calculation of time value bolsters delivery app appeal, as consumers weigh the cost against the expertise and time required for alternative activities such as cooking specialized meals themselves.
After A Hot Streak, Uber Navigates Competitive Pressures Amid Market Challenges 🚗🔥🌐
SOURCE – The Wall Street Journal
Uber faces more challenges from market dynamics and competition rather than from the prospect of autonomous vehicles, such as the Tesla robotaxi, according to an analysis from The Wall Street Journal. Uber saw a boost in stock following Tesla’s Robotaxi Day event.
However, investor anxiety resurged with Uber’s own sluggish third-quarter report showing weak bookings growth and a forecasted slowdown, compounded by rising insurance costs.
- The report cited the DoorDash and Lyft partnership to integrate Lyft services into the DashPass program poses competitive threats to Uber’s membership offerings. Analysts are mixed on the level of impact but view the collaboration as increasing competitive pressure in the market.
- Despite headwinds, including price elasticity affecting rider numbers due to increased ride costs, Wall Street’s outlook remains largely positive, with 85% of analysts rating Uber a “buy.”
Driving For Uber For 24 Hours STRAIGHT ⏰ 🚗🥱
SOURCE – YouTube
You read that title right. Our contributor, Kian, drove for Uber for 24 hours STRAIGHT. No leaving to get sleep at home. No spending time with family and friends. NO. TIME. WASTED. So how was he able to even pull this off?
What challenges did he face in trying to reach his financial goals with Uber? Was he even able to complete this without putting his on the line? And most importantly… How much did he make? Watch the video and find out more!
QUICK HITS
- Did Expedia chairman Barry Diller shoot the possibility of Uber acquiring the travel company? He told CNBC, “It’s not going to happen.” – CNBC
- Serve Robotics is acquiring Vebu, a fellow robotics company that makes the Autocado machine currently being piloted in Chipotle locations, in an all-stock deal. – INC
- Stanley Tang, a director at DoorDash, has sold $7.78 million worth of stock. – Investing.com
- Lyft is partnering with May Mobility to bring autonomous rideshares to Atlanta. – Government Technology
Must Listen Or Watch RSG Content
Here are this week’s featured podcast episode and YouTube videos:
- RSG263: Justin Pappan on Renting a Fleet of Teslas! (EV Access)
- Uber Pre Match For Airports Rides (WHAT YOU NEED TO KNOW)
- Lyft VS Uber: Who’s Better For UPFRONT FARES??
- Are Lyft Ride Challenges & Uber Quests Worth It?
- The Rideshare Guy en Español
- Make sure you Subscribe so you don’t miss out on future conversations and interviews!
