Weekly Roundup: Uber Suspends Teen Ride Service in California

Uber is suspending its teen ride service in California due to new fingerprinting requirements. Taiwan blocks Uber’s acquisition of Foodpanda. The CFPB sues Walmart and a finance provider over forcing gig workers to use paycards. A new driver co-operative wants to take on Uber and Lyft. We break it all down for you.

Uber Suspends Teen Ride Service in California Due to New Fingerprinting Requirements

Uber Teen Service Suspended in California
Uber Teen Suspended in California

SOURCE – Ben Edelman

Uber is suspending its “Teen” rideshare service following new regulations issued by the California Public Utilities Commission (CPUC), which require drivers transporting minors to undergo fingerprinting. While Uber indicated the service could be reinstated in the future, it says it is suspending the service due to insufficient time to meet these new compliance requirements.

  • The CPUC passed an ordinance earlier this month aiming to prevent potential sex offenders from driving unaccompanied minors by conducting thorough background checks. Uber currently does not collect biometric data from drivers in California.
  • However, Uber teen accounts can still be used for ordering Uber Eats within the state and for requesting rides outside of California where Uber’s teen services are available.

Taiwan Blocks Uber’s $950 Million Acquisition of Foodpanda on Anticompetition Grounds

Taiwan Blocks Uber's Acquisition of Foodpanda
Taiwan Blocks Uber's $950 Million Acquisition of Foodpanda on Anticompetition Grounds

SOURCE – The Wall Street Journal

Taiwan’s Fair Trade Commission blocked Uber’s proposed $950 million acquisition of Foodpanda’s delivery business in the country due to anticompetition concerns. The Commission argued that the merger would reduce competition, leading Uber to increase prices for consumers and eateries and could create barriers for new competitors in the market.

  • The Commission highlighted that Foodpanda is Uber’s primary competitor in Taiwan’s food delivery sector, and removing this rivalry could harm market competition.
  • Uber announced the acquisition plan in May, with the goal for the deal to close in the first half of 2025. Uber could appeal the Commission’s decision.
  • The deal was one of the largest planned acquisitions of a Taiwanese company outside the semiconductor industry.

Consumer Protection Agency Sues Walmart for Allegedly Forcing Drivers into Costly Accounts

Consumer Protection Agency Sues Walmart
Consumer Protection Agency Sues Walmart for Allegedly Forcing Drivers into Costly Accounts

SOURCE – CNN

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and paycard issuer Branch Messenger, accusing them of illegally requiring independent contractor delivery drivers to use high-fee deposit accounts for access paychecks. The CFPB also claims the companies opened unauthorized deposit accounts for drivers using their personal information and threatened drivers’ jobs if they didn’t use the accounts.

  • The CFPB claims that drivers incurred $10 million in “junk fees” to transfer their earnings to other accounts despite promises of instant pay access.
  • Both Walmart and Branch deny the charges, criticizing CFPB’s investigation process.
  • Gig workers have criticized the use of paycards in the industry. Paycards can generate revenue for issuing companies and banks through fees. These might include ATM withdrawal fees, transaction fees, or inactivity fees, which can accumulate significantly when spread across many users.

A Rideshare Cooperative Wants to Challenge Uber, Lyft with Equity and Better Pay

Rideshare Cooperative Challenges Uber and Lyft
A Rideshare Cooperative Wants to Challenge Uber, Lyft with Equity and Better Pay

SOURCE – Jacobin

A national rideshare cooperative, called the Drivers Cooperative, has been launched as an alternative to Uber and Lyft, aiming to improve pay and working conditions for rideshare drivers. The cooperative offers drivers equity stakes for a minimum of $200 and ensures they receive 80% of fares, with the remaining funds for co-op costs.

  • The co-op is currently active in Colorado and already represents more than 4K drivers, with a customer base of about 14K riders.
  • Co-op drivers are covered under the organization’s commercial insurance, with the co-op not taking any money from the fare to reimburse insurance costs. However, it is unclear if the driver needs to maintain certain personal insurance coverage for this commercial policy to be enacted.

Don’t Miss Sergio’s Holiday Message to the Driver Community!

Happy Holidays from RSG
Happy Holidays from The Rideshare Guy Team!

SOURCE – YouTube

Thank you for another wonderful year, Rideshare Guy community! Our legendary RSG Senior Contributor Sergio Avedian put together a holiday message for the community. What do you want to see from RSG in the new year? Hit reply to this email, and let us know your thoughts!

QUICK HITS

  • Citi analysts say DoorDash stock is a must-buy in 2025. – Yahoo! Finance
  • Instacart has joined Uber in a lawsuit against the city of Seattle and its gig worker deactivation law. – GeekWire
  • Fiserv is acquiring Payfare, a provider of instant payout and digital banking solutions tailored to the gig economy. – Payments Journal

Must Listen Or Watch RSG Content

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