Weekly Roundup: Will Amazon Acquire Lyft?

Speculation arises around whether Amazon will acquire Lyft in 2025. Is Uber stock a buy or a sell in the new year? A federal judge upholds Seattle’s gig worker deactivation ordinance. DoorDash enacts a tough verification system to catch fraud. We break it all down for you.

Will Amazon Acquire Lyft?

Will Amazon Acquire Lyft?
Will Amazon Acquire Lyft?

Source: Seeking Alpha via MSN

Could Amazon be on the cusp of acquiring Lyft? The Information reporter Anita Ramaswamy believes so. In a recent article, Ramaswamy wrote that rideshare services are in for a period of disruption. Uber has been preparing for a full future of robotaxis, but Lyft is in a “far sorrier state, which makes it a ripe acquisition target” for the e-commerce giant.

  • Lyft has a substantial ride-hailing network with 24 million active riders, a significant asset for Amazon to scale its autonomous vehicle ambitions.
  • Combining Lyft’s network with Zoox, an Amazon-acquired company, could increase competitiveness against Waymo and open possibilities for Amazon’s expansion into new service areas like food delivery.
  • On speculation of a potential acquisition, Lyft shares rose by nearly 5%, marking a positive shift after several days of declining stock performance.

Is Uber Stock a Buy or Sell?

Is Uber Stock a Buy or Sell
Is Uber Stock a Buy or Sell?

SOURCE – Marketbeat, Investing.com

As the rideshare market evolves with the promise of autonomous vehicles, the question remains whether Uber will remain a dominant player in the future of the industry. Uber’s potential stock performance presents contrasting views from analysts, with potential growth opportunities and associated risks.

  • Uber displayed strong growth over the past 12 months, with key performance indicators such as a 16% increase in gross bookings and a user base growth of 161 million, reflecting rising adoption.
  • Uber has increased its free cash flow by 133% and initiated a $375 million stock buyback program, indicating confidence in its stock value and financial strategy.
  • However, JMP Securities downgraded Uber from “Market Outperform” to “Market Perform,” reflecting uncertainty in adapting to the AV model amidst growing competition from players like Waymo.

Federal Judge Upholds Seattle Deactivation Ordinance Against Uber Challenge

Federal Judge Upholds Seattle Deactivation
Federal Judge Upholds Seattle Deactivation

SOURCE – Courthouse News Service

Seattle’s ordinance providing protections for app-based gig workers will take effect as planned after a federal judge ruled against Uber and Instacart’s challenge. The legislation will require gig economy companies in the state to implement clear deactivation policies.

  • Uber and Instacart argued the ordinance infringed on free speech rights by mandating policy changes that contradict their operational preferences, but the court deemed it a regulation of conduct, not speech.
  • The law requires companies with over 250 app-based workers globally to lay out clear policies on worker deactivations, offering explanations and a two-week notice before any action is taken.

DoorDash Enhances Driver Verification System to Curb Fake Identities

DoorDash Enhances Driver Verification System
DoorDash Enhances Driver Verification System

SOURCE – Newsweek

A Newsweek story discusses how DoorDash has implemented new safeguards to strengthen its driver verification process. The goal is to curtail the use of fake identities among its delivery drivers — a response to inquiries from U.S. lawmakers concerned about unauthorized workers. Despite these measures, there are ongoing questions about their effectiveness.

  • Following concerns from U.S. lawmakers about undocumented migrants using fake identities, DoorDash has rolled out these measures in several U.S. cities, with plans to expand further. The company aims to enhance safety and reliability by ensuring drivers are who they claim to be.
  • The platform now conducts real-time identity checks for over 150,000 drivers weekly, targeting those who exhibit suspicious behavior.
  • Some drivers express worries that constant re-verification disrupts their work and income. However, DoorDash maintains that these efforts are crucial for platform integrity, emphasizing that all drivers, including immigrants, must comply with verification standards.

Big Money to Start 2025! | Driver Diary with Sergio

Big Money to Start 2025
Big Money to Start 2025

SOURCE – YouTube

If you decided to work over the New Years holiday, it may have paid off handsomely. RSG Senior Contributor Sergio Avedian documented on December 31, 2024, user activity and surge pricing for both Uber and Lyft apps in Los Angeles, California. Watch the video to find out more! Be sure to send your earnings screenshots to sergio@therideshareguy.com. The highest earners will have a chance to win even more dough, as we are giving away a gift card from RSG!

Also, Show Me The Money Club is BACK on Tuesday, Jan. 6, at 6PM ET/3PM PT, on the RSG YouTube channel. Don’t miss it live and hang out with Sergio and Chris.

QUICK HITS

  • Delivery startups in India are speeding up, promising hot food and grocery deliveries in less than 10 minutes – Bloomberg (Paywall)
  • Delivery giant Grab has acquired a stake in Cambodian food delivery company Nham24. – Technode
  • Food delivery robots are coming to Dallas, Texas and questions arise about regulations. – Gov Tech
  • DoorDash CFO Inukonda Ravi has sold roughly 7,000 shares of company stock, netting them $1.19M. – Investing.com

Must Listen Or Watch RSG Content

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