Weekly Roundup: Lyft Has More Upside Potential Than Uber

Analysts argue Lyft has more upside than Uber. Lawsuit claims Uber’s driver app “chronically” distracts drivers. Driver safety alarms intensify after St. Louis carjackings and a fatal attack on an Uber driver. Lyft’s co-founders step down from the board.

We break it all down for you.

Lyft Has More Upside Potential Than Uber

SOURCE – Seeking Alpha

An analysis from Seeking Alpha argues that Lyft may offer greater upside than Uber, citing a narrower focus on North American rides, operational discipline under CEO David Risher, cost control, and recent execution improvements.

• The author believes Lyft has a higher chance than Uber to increase in value by 10 times.

• Lyft has significant net cash holdings, around 18% of its current market value, meaning its true valuation is actually even less than it appears at first glance.

• Key factors highlighted include unit economics, improved marketplace balance, and progress reducing price gaps vs. Uber.

Uber App Causes Drivers to Be Distracted?

SOURCE – Yahoo News

A newly filed lawsuit alleges the Uber driver app’s design “chronically distracts” drivers and pushes them to violate traffic laws, creating safety risks and legal exposure behind the wheel. The lawsuit cites in-ride prompts and rapid-fire notifications that incentivize split attention, with plaintiffs seeking accountability for interface choices that allegedly prioritize engagement over safety.

• The controversy spotlights a recurring driver concern: multitasking pressures from navigation, messaging, and acknowledgment taps while moving.

• Rideshare driver forums are echoing calls for stronger “drive mode” defaults, stricter lockouts while in motion, and better queued notifications at stops.

Is Uber Too Unsafe for Drivers?

SOURCE – STL Magazine

High-profile incidents intensified scrutiny of rideshare driver safety, with reports of a string of St. Louis carjackings and a separate New Mexico case involving the killing of an Uber driver. Cases like these renew pressure on platforms to bolster safety features, data-driven risk alerts, and real-world enforcement partnerships as drivers report heightened anxiety around driving late at night and ask for more robust rider verification.

• Advocates are urging improved passenger screening, visible ID checks, and more granular location-based safety warnings.

• Law enforcement coordination and insurance clarity remain focal points for drivers seeking tangible protections.

• It is best for drivers to follow best practices to stay safe: use a dashcam, verifying the passenger who enter the vehicle, avoid “hot zones” during late hours, and clear cancellation boundaries.

Lyft Co-Founders to Step Down From Board

SOURCE – NBC News

Lyft said co-founders Logan Green and John Zimmer will step down from the company’s board following a two-year transition that began when they relinquished executive roles in 2023, further consolidating the leadership era under CEO David Risher. The move caps a generational shift aimed at operational execution and profitability, as Lyft navigates competitive dynamics and investor expectations following recent earnings.

• The transition signals continuity for Risher’s marketplace reliability and cost discipline agenda.

• Board reshuffling may open the door for additional operationally focused directors with mobility and marketplaces expertise.

• Investors will watch if governance changes translate into sustained margin gains and share recovery vs. Uber.

McDonald’s Launches First-Party Delivery Channel with DoorDash

SOURCE – Restaurant Dive

McDonald’s introduced a new direct-ordering channel accessible via its website and mobile web in the U.S., with fulfillment handled by DoorDash Dashers, eliminating the need for a customer account or a separate app download. The move expands McDelivery access while giving McDonald’s more control of the ordering funnel and customer data, while DoorDash powers white-label logistics in the background.

• The channel extends a broader McDonald’s–DoorDash global partnership and is part of a multi-partner delivery strategy.

• For Dashers, the integration can mean steady order volume from McDonald’s, but it is unclear if customers will be able to send a tip through McDonald’s delivery platform.

Uber Driver Masterfully Kicks Passenger Out

SOURCE – YouTube Shorts

Our latest YouTube Short shows how a rideshare driver professionally handled and removed a disruptive passenger who violated recording policies. Watch the video and be sure to share your feedback!

QUICK HITS

• NYC lawmakers are pushing Lyft to introduce identification-based age verification for Citi Bike e-bikes, aiming to stop minors from riding them. – AMNY

• Nashville’s airport has some of the highest fees for Uber and Lyft in the U.S. – The Tennessean

• Uber Freight announced that Rebecca Tinucci (ex-Uber, Tesla) will step in as its new CEO, taking over the role from company founder Lior Ron. – Yahoo Finance

• 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.

Must Listen Or Watch RSG Content

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

• RSG265: Lyft Completes FREE NOW Acquisition, Eyes Global Expansion

• BUSTED?! External Fees Changed AFTER the Trip (70/30 Workaround?)

• Uber One’s NEW Feature: SURGE SAVINGS or Just Hocus Pocus?

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