Weekly Roundup: Lyft Threatens Driver Deactivation Over Third-Party Earnings Apps

Lyft threatens to deactivate drivers who use third-party earnings apps. Waymo charges a premium over Uber and Lyft, but riders pay anyway. Uber partners with Wayve for driverless London trials by 2026. Chicago considers forcing pay hikes for rideshare drivers. Uber sues Florida network over alleged insurance fraud scheme.

We break it all down for you.

Lyft Threatens Driver Deactivation Over Third-Party Earnings Apps

SOURCE – Sergio Avedian/The Rideshare Guy

Lyft has issued formal warnings to drivers detected using unauthorized third-party applications, threatening account deactivation for violating Terms of Service despite research showing these tools can boost driver income by 10-15%. The company cites security concerns and unauthorized credential sharing as reasons for the ban, instructing drivers to remove unrecognized devices from their accounts, while critics point out the hypocrisy of Lyft using third-party integrations itself but denying drivers access to income optimization tools.

• This would affect users of apps like Maxymo, Mystro, GigU, Solo, and Gridwise.

• Lyft’s official warning emphasizes “customer obsession” as justification for the change.

• The company claims third-party apps lack Lyft’s security standards and could compromise driver information, though it provides no public API alternative for legitimate driver tools.

Waymo Robotaxis Charge More Than Uber and Lyft, and Passengers Still Choose Them

SOURCE – TechCrunch

A new report from Obi, an app comparing ride prices, finds that Waymo’s self-driving rides in San Francisco cost significantly more than Uber and Lyft. Short Waymo trips cost up to 41% more than competitors, and variability in both pricing and wait times is higher than with Uber and Lyft.

• Waymo rides cost $20.43 on average, compared to $15.58 for Uber and $14.44 for Lyft. At peak times, Waymo rides were $11 more expensive than Lyft and $9.50 costlier than Uber for the same routes.

• 70% of Waymo users preferred a driverless ride, even as 74% listed safety as their main concern, and nearly 70% wanted some human oversight.

• About 16% of passengers would pay up to $10 extra for Waymo, but 40% of riders expect to pay the same or less than traditional rideshare options.

Uber to Launch Fully Driverless Rides in London with Wayve by 2026

SOURCE – CNBC

Uber has announced a partnership with UK-based AI firm Wayve to introduce fully driverless robotaxi rides in London starting in spring 2026, marking Uber’s first autonomous service without a safety driver onboard. The pilot, enabled by new UK regulations and supported by Transport for London, will utilize Wayve’s AI-powered self-driving software, aiming for “Level 4” autonomy.

• The pilot will be run in collaboration with the UK’s Department of Transport and Transport for London, pending regulatory approvals.

• Wayve, backed by SoftBank, boasts AI technology designed to work across different environments and cities, offering flexibility for various urban settings.

• The initiative follows the UK’s recent Autonomous Vehicles Act, which sets the legal groundwork for self-driving cars to hit British roads by 2026.

Chicago Weighs Ordinance to Boost Rideshare Driver Pay Amid Industry Pushback

SOURCE – Chicago Tribune (Paywall free)

A proposed Chicago ordinance aims to raise Uber and Lyft driver pay above minimum wage, guaranteeing $1.50 per mile and $0.62 per minute as of July 2026, with a $7 minimum payouts per trip. The ordinance would also require fare transparency, advanced disciplinary notices, and new rider-verification safety protocols.

• Supporters say it would correct declining pay and cover unpaid driver time, while Uber and Lyft warn it could hike fares nearly 40%, decrease demand, and force workforce cuts.

• Uber and Lyft cite a poll showing most Chicagoans rely on rideshare and oppose fare hikes, warning the law could cost the city millions in tax revenue and affect up to 10,000 drivers.

• Unions are divided: some support increased pay and driver protections, while others argue the measures are ill-timed and may reduce driver flexibility or fail to address injury/deactivation concerns.

A Day in the Life of Lyft CEO David Risher: Biking, Matcha, and Undercover Driving

SOURCE – Business Insider (Paywall free)

Business Insider profiled the daily routine of Lyft CEO David Risher. Risher usually bikes to the office, takes afternoon matcha breaks, and said he drives undercover as a Lyft driver every six weeks.

• His workday includes morning stand-up meetings, three hours of direct report meetings, and afternoon walks that often serve as informal meeting spaces with team members.

• Risher conducts undercover Lyft drives approximately every six weeks to understand rider experiences and service quality, revealing his identity only at the end of trips.

• Outside of work, Risher maintains evening routines with his wife that include cooking, reading, and watching streaming content, typically ending his day around 11 p.m.

Uber Files Federal Lawsuit Against Alleged Florida Insurance Fraud Network

SOURCE – Insurance Business Magazine

Uber has filed a federal lawsuit in South Florida against a network of attorneys, medical professionals, and rideshare drivers, alleging they orchestrated a sophisticated insurance fraud scheme involving staged accidents and fabricated injuries throughout 2023 and 2024. The company claims the defendants bribed five Uber drivers to participate in fake crashes and directed participants to specific auto repair shops to support false injury claims.

• Uber states the scheme resulted in several million dollars in legal defense costs and settlements, with the investigation still ongoing.

• This marks Uber’s second major racketeering lawsuit in 2025, following similar legal action against law firms and medical facilities in New York for comparable alleged conduct.

• Uber has invested millions in advertising campaigns promoting insurance reform at state and federal levels, citing rising insurance costs as a factor in increased fare prices.

Uber CEO: “I’m Not Going Anywhere”

SOURCE – YouTube Shorts

This week, Uber promoted Andrew MacDonald to Chief Operating Officer – their first COO since 2019. He’s now running BOTH ride-hailing AND delivery. Now, you might think this might represent a possible succession plan for Uber, as CEO Dara Khosrowshahi is going on his ninth year running Uber. But Dara was quick to tell employees: He’s not going ANYWHERE anytime soon. Watch the YouTube Short to learn more.

QUICK HITS

• DoorDash purchased advertising technology company Symbiosys for $175 million to help its 150K+ restaurant partners manage ads across major platforms like Google, Facebook, and Instagram, expanding beyond DoorDash’s own billion-dollar advertising business. – Bloomberg

• Is the future of rideshare micro transit? JUMP Transit is growing momentum in Charlotte, North Carolina, offering eco-friendly rides for just a few bucks. – Axios

• Uber is expanding beyond rideshare by launching helicopter transfers from Sorrento to Capri and boat tours along Italy’s Amalfi Coast this summer. – Travel Pulse

• 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:

• Why Drivers & Riders Are QUITTING! Gridwise Data EXPOSES Uber & Lyft

• How I Save $1000+ A Year Driving Uber Part Time

• Drivers BEWARE: How Uber’s Algorithm is Playing Games with Your Pay

• How This Uber Driver Makes $300+ Per Day

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