Weekly Roundup: Uber CEO Says Tipping Should Be Based on Service Quality, Not Obligation

Uber CEO weighs in on tipping etiquette. Autonomous vehicles threaten to capture 8% of the rideshare market by 2030. Canadian Uber drivers achieve historic union certification in British Columbia. Uber expands services. Moove secures $1.2 billion to launch Waymo autonomous fleets in the US.

We break it all down for you.

Uber CEO Says Tipping Should Be Based on Service Quality, Not Obligation

SOURCE – Business Insider

In an interview, Uber CEO Dara Khosrowshahi gave the company’s stance on the controversial topic of tipping on trips, emphasizing that tips are entirely optional and based on service quality. He said that customers should only tip "if you feel you got your money's worth and then some" and if the ride quality was exceptional.

• Khosrowshahi said that a passenger’s decision to tip should remain a personal choice rather than an obligation.

• Currently, about 20% of Uber riders tip their drivers, though this percentage is gradually increasing according to Khosrowshahi.

• However, Uber has reduced driver earnings, as it increased its take rate, and drivers are increasingly reliant on tips to make a profit.

Robotaxi Market Set to Capture 8% of Rideshare by 2030, Threatening Driver Livelihoods

SOURCE – Goldman Sachs

The robotaxi market is projected to expand from 1,500 robotaxis currently operating in five U.S. cities to 35,000 nationwide by 2030, capturing 8% of the rideshare market and generating $7 billion in annual revenue.

• Goldman Sachs Research forecasts a 90% compound annual growth rate for robotaxis through 2030, with gross margins reaching 40-50% for operators.

• This rapid expansion poses a significant threat to traditional rideshare drivers, who could see their market share and earning opportunities diminish as autonomous vehicles become more cost-effective and widely deployed.

• Uber CEO Dara Khosrowshahi previously said human rideshare drivers still have about 10 years before they are replaced.

Canadian Uber Drivers Achieve Historic Union Certification in British Columbia

SOURCE – Bloomberg (Paywall free)

Uber drivers in Greater Victoria, British Columbia, have successfully joined UFCW 1518 union and are preparing to negotiate what would be Canada’s first collective bargaining agreement for rideshare drivers. The certification was made possible by British Columbia’s progressive labor laws, including a new online platform worker category created in late 2023 that allowed automatic certification based on signed union cards.

• Uber has confirmed it will meet with the union to begin negotiations, marking a significant milestone for gig worker rights in Canada.

• The organizing effort centers on key issues that directly impact driver earnings and working conditions, including greater transparency around trip rates and pay calculations, improved health and safety protections, and fair processes for account deactivations.

Uber Rolls Out Service Changes on the Week of July 4th

SOURCE – CNET

Uber is making a series of service changes on the week of July 4th. The company is expanding its rental car delivery service to 15 additional cities (bringing the total to 24), introducing discounted airport carpool options at over 40 new airports with savings up to 25%, and enhancing hotel food delivery with more flexible drop-off options.

• The expansion of Uber Rent to cities like Dallas, Phoenix, Charlotte, and Las Vegas opens up vehicle delivery jobs for drivers, as Uber contracts existing drivers for this service.

• Uber Eats users can now choose specific delivery methods for hotel orders, including lobby pickup, front desk drop-off, or room delivery.

Moove Secures $1.2 Billion to Launch Waymo Autonomous Fleet in US

SOURCE – TTNews

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.

Uber Passengers Complain About Not Being Able to Get Rides from Major Stadium. Why?

SOURCE – YouTube Shorts

Why aren’t Uber passengers able to get rides from a popular sports complex in Philadelphia, PA? Watch the replay on YouTube to learn more.

QUICK HITS

• A Business Insider article profiled Kreskin Torres, a rideshare and delivery driver who drives around the U.S. while doing gig work. – Business Insider

• On the news that Uber is possibly investing in Travis Kalanick’s Pony.ai acquisition, a writer suggested that Lyft should step in, make Kananick CEO, and partner with CloudKitchens and DoorDash to beat Uber. – Retail Technology Innovation Hub

• Fort Worth, Texas has some of the most affordable Uber rides in the country. – Star Telegram

• 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:

• RSG264: Should Rideshare Drivers be Worried About Autonomous Vehicles?

• How to Read the Lyft Upfront Fare Screen 2025 Update

• Deactivated 9 Times — This Uber Driver Fought Back and Won

• Uber’s Dirty Trick Of Gamifying Drivers Into Accepting Less Pay?

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