Weekly Roundup: Tesla’s Underwhelming Robotaxi Launch is Lyft’s Gain, According to Analysts

Lyft gains ground as Tesla’s robotaxi rollout stumbles. New York court ruling limits supplemental insurance coverage for Lyft drivers and passengers. Analysts see Uber benefiting from Trump’s new tax-free tips law, while Tesla falls far behind Waymo without key robotaxi permits.

We break it all down for you.

Tesla’s Underwhelming Robotaxi Launch is Lyft’s Gain, According to Analysts

SOURCE – Seeking Alpha

Lyft is set to benefit from the lackluster debut of Tesla’s robotaxi, as well as increased cost of personal vehicle ownership, according to Oppenheimer analysts. The tepid response to Tesla’s self-driving fleet alleviates fears that robotaxis would disrupt the rideshare market, positioning Lyft to potentially narrow its gap with Uber and drive strong EBITDA margin growth.

• Oppenheimer believes Lyft may pursue more strategic acquisitions like its recent FreeNow purchase or consider share buybacks as its profitability improves.

• Analysts note that Lyft’s Q2 and second-half outlook remain robust, with competitive dynamics and consumer demand holding steady since the company’s last earnings report.

• Recent share gains for Lyft have prompted Oppenheimer to maintain an Outperform rating and raise their price target by $3, projecting a 25% upside.

NY Court Ruling Limits Insurance Coverage Options for Lyft Drivers in For-Hire Accidents

SOURCE – Insurance Business Magazine

A recent New York appellate court decision found that Lyft vehicles classified as “for-hire” under city law don’t qualify for supplementary underinsured motorist coverage from Progressive Insurance. In effect, this ruling means that when driving for Lyft in New York City, both drivers and their passengers may not have access to certain insurance protections in the event of an accident, depending on the specific policy language.

• The court clarified that vehicles carrying paying passengers in NYC, including those working on Lyft, are legally considered “for-hire” and not covered under Progressive’s TNC policy.

• Because of this definition, drivers could find passengers (or themselves) ineligible for certain benefits if involved in an accident, even if their policy appears to offer broader protection.

• This case highlights the importance for rideshare drivers to thoroughly review their insurance policies and understand how city or state laws could impact their coverage. If passengers are hurt in an accident and the driver at fault doesn’t have much insurance, or flees the scene, the driver or passenger might not have access to the “back-up” coverage SUM provides.

Uber Stands to Gain as New Tax Law Makes Tips Tax-Free for Drivers

SOURCE – Investors Business Daily

A new U.S. law exempts tips from drivers’ taxes, up to $25,000 per year, which is expected to boost Uber drivers’ take-home pay and attract more people to the platform. Bank of America Securities’ Justin Post highlighted this “modest tailwind” to Uber’s driver supply, raising his Uber stock price target from $97 to $115 and maintaining a buy rating.

• Uber drivers could collectively save around $1 billion in taxes this year, representing a 2.5% pay increase, according to BofA estimates.

• With shares up 59% in 2025, Uber’s prospects have also been bolstered by increased booking growth, further analyst optimism, and the perception that Tesla’s autonomous vehicle ambitions are stumbling.

• Analyst sentiment remains strong: in addition to BofA, Wells Fargo recently raised its Uber price target to $120.

Tesla’s Robotaxi Plans Stall Without Needed Permits, Leaving Waymo Far Ahead

SOURCE – Bloomberg (Paywall free)

Despite high-profile claims and a stock surge, Tesla remains well behind Waymo in the driverless taxi race, lacking crucial regulatory permits in both Austin and the San Francisco Bay Area. Tesla’s robotaxi service still requires a human safety operator and is limited to a small group, while Waymo offers fully driverless rides to the public.

• Austin officials say Tesla has not communicated its expansion plans or applied for new permits.

• In California, Tesla has not applied for the driverless testing and deployment permits it needs to operate robotaxis.

• Tesla’s gradual rollout remains confined to employees and insiders, and it can’t legally launch wider robotaxi services without further regulatory approval.

Waymo Begins Mapping Philadelphia Streets With Human-Driven Robotaxi Fleet

SOURCE – Philadelphia Inquirer (Paywall free)

Moove is finalizing a $1.2 billion debt financing round to fund its expansion into the U.S. rideshare market with an autonomous vehicle fleet powered by Alphabet’s Waymo technology. The oversubscribed round, backed by private credit firms and banks, will enable Moove to own and manage its first autonomous fleet in America as part of its partnership with Waymo established in December 2024.

• Founded in 2020 by Ladi Delano and Jide Odunsi, Moove has grown rapidly from financing vehicles for African ride-hailing drivers to operating a rideshare fleet of 38,000 cars across more than a dozen markets.

• The company currently operates across multiple continents including the UAE, Mexico, and India.

Passengers Say They Won’t Miss Drivers When They Are Replaced By Robots

SOURCE – YouTube Shorts

Entrepreneur Nick Gray said “he believes we will look back on the ride share process as a unique moment in time that was not ideal. Watch the YouTube Short to learn more.

QUICK HITS

• DoorDash suffered an outage this week, affecting customers and users. – KRON4

• DoorDash says Seattle is its most expensive market to operate in. – KING5

• Uber was named the official rideshare and delivery partner of the 2028 Los Angeles Olympic Games. – Reuters

• 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:

• Cash Rides Are Exploding — But Here’s the Dark Side

• 5 Lyft App Secrets Every Driver Needs to Know!

• This Driver Made Over $1,000 on July 4th?! Here’s How!

• HERide: The All Female Rideshare Challenging Uber and Lyft!

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