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📰 Is Travis Kalanick Returning to Uber? Uber Considers Funding Autonomy Deal

June 29, 2025

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Weekly Roundup: Is Travis Kalanick Returning to Uber? Uber Considers Funding Autonomy Deal

Uber reports mixed Q1 results. Lyft outperforms expectations with strong Q1 bookings and expanded buyback program. DoorDash swings to profit and announces acquisitions of Deliveroo and SevenRooms. Analysts remain bullish on Uber despite mixed earnings, raising price targets. Uber’s all-hands meeting turns tense.

We break it all down for you.

Is Travis Kalanick Returning to Uber? Uber Considers Funding Autonomy Deal

Image source: "Travis Kalanick" by jdlasica is licensed under CC BY 2.0.

SOURCE – The New York Times

Uber is in preliminary talks to help fund co-founder Travis Kalanick‘s acquisition of Pony.ai’s U.S. subsidiary, a Chinese autonomous vehicle company valued at $4.5 billion. Kalanick, who was ousted from Uber in 2017, would run the company if the deal proceeds.

  • The potential partnership represents Uber’s latest strategy to compete with growing threats from Waymo and other robotaxi services that are gaining traction in major U.S. cities.

  • New Commerce Department rules prohibit Chinese-operated autonomous vehicle software in the U.S. by March 2026, forcing Pony.ai to prepare its American operations for sale or spinoff.

  • Since being ousted from the company, Kalanick has gone on to start CloudKitchens, a startup that runs ghost kitchens. In the past year, he has become more interested in robotics and has grown a relationship with Uber CEO Dara Khosrowshahi.

Uber’s Upfront Pricing Strategy Drives $12 Billion Cash Flow

Executive in Residence and Adjunct Professor at Columbia Business School, Len Sherman, along with Columbia Business School researchers revealed that Uber’s implementation of “upfront pricing” in 2022 has been the primary driver behind the company generating nearly $10 billion in annual free cash flow.

  • The study, based on analysis of over 31,000 trips by power drivers and 2+ million ride requests across eight major U.S. cities, shows Uber increased its take rate from 32% to 42% by systematically raising rider prices while cutting driver pay through algorithmic price discrimination. This strategic shift has generated an estimated $4 billion in additional annual profits for Uber’s U.S. rideshare business alone.

  • The research identified several non-transparent practices including “surge bonus-shaving” where drivers receive reduced base pay despite advertised surge bonuses, “bait-and-switch” discounts where base prices are inflated before applying promotional discounts, and premium pricing for trips between high-income neighborhoods.

  • These pre-assigned rides while drivers are still completing current trips result in 6-11% higher prices for riders who experience 40-60% longer wait times and worse service, while drivers receive little to no additional compensation and face higher cancellation rates.

Tesla’s Austin Robotaxi Launch Plagued by Safety Failures and Technical Issues

Edward Niedermeyer/YouTube

Tesla’s highly anticipated Robotaxi launch in Austin revealed multiple critical safety defects despite operation in a carefully controlled environment and remote human supervision. The limited deployment of 10 vehicles to select Tesla supporters in a small geofenced area resulted in documented incidents of driving on the wrong side of the road, phantom braking near police cars, and dropping passengers off in traffic intersections.

  • Analysis by The Dawn Project shows Tesla’s system managed only 250 miles between safety-critical errors, far behind Waymo’s 17,060-mile performance standard. Famously, Tesla vehicles do not have LiDAR sensors installed on their vehicles, only powered by smaller cameras and an AI system.

  • Some analysts believe Tesla can have an advantage in the rideshare/robotaxi industry because it can expand faster than Waymo since they are less expensive to acquire.

  • Want to learn more about the world of robotaxis and autonomy? Be sure to subscribe to The Driverless Digest!

NYC Taxi Commission Bans Surprise Driver Lockouts, Requires 72-Hour Notice

Image source: "Lexus TX" by JLaw45 is licensed under CC BY 2.0.

SOURCE – The New York Times

New York City’s Taxi and Limousine Commission unanimously voted to restrict Uber and Lyft’s practice of randomly locking drivers out of their apps without warning, a cost-cutting measure that left drivers unable to work for hours at a time. Under new rules effective August 1st, the companies must provide at least 72 hours’ notice before implementing lockouts and cannot block drivers for 16 hours once they begin accepting trips, with violations carrying $500 fines.

  • The lockouts were implemented as a workaround to avoid paying higher wages under the city’s 2019 minimum pay laws, which require companies to pay more when driver utilization rates fall below 53%.

  • The new rules include a 5% pay raise for drivers and closed loopholes that allowed companies to artificially inflate utilization rates by reducing the number of active drivers on the road rather than paying mandated higher wages.

Could Tesla’s Future Hinge on Its Success with Robotaxis and Rideshare?

Image source: Tesla Newsroom

Tesla’s robotaxi and rideshare carries enormous stakes for the company’s future, as its robotaxi future accounts for approximately 60% of Tesla’s $1.1 trillion valuation according to RBC analysts.

  • With Tesla trading at 150 times forward earnings while established rideshare giants Uber ($170 billion market cap) and Lyft ($11 billion) operate at much lower multiples, Tesla’s premium valuation hinges heavily on successfully transitioning from automaker to autonomous transportation provider.

  • Robotaxis account for approximately 60% of Tesla’s $1.1 trillion valuation according to RBC analysts, while the company trades at 150 times forward earnings compared to Alphabet’s 18.5 times multiple.

  • Raymond James projects Waymo’s gross bookings will grow 129% annually over five years through partnerships with established players like Uber.

How Uber Became a Cash Machine, Driver Pay & Trip Radar Trouble at Airports?

SOURCE – YouTube

On this week’s episode of “Show Me the Money Club,” RSG’s Sergio Avedian and Chris Gerace are joined by special guest Len Sherman (Columbia Business School) to discuss Uber’s new cash machine era, driver pay trends, Trip Radar at airports, and whether drivers should control their own rates. Watch the replay on YouTube to learn more.

QUICK HITS

  • An Atlanta-based sports reporter said she was pepper sprayed and attacked by an Uber driver. – NBC News

  • Lyft is conducting a forum with drivers to get their feedback on key autonomous vehicle strategies as the company includes more robotaxis. – Reuters

  • DoorDash spent $1M to try to defeat NYC mayoral candidate Zohran Mamdami, to only see him win the election. – Eater NY

  • Want to learn more about the robotaxi industry? Subscribe to The Driverless Digest, our new newsletter and podcast dedicated to the future of autonomous vehicles.

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