Weekly Roundup: Uber Challenges Over 100 Sexual Assault Claims as Fraudulent

Uber faces challenges over fraudulent sexual assault receipts. Waymo and Uber partnership shows strain as both seek new partners. Lyft completes FREENOW acquisition expanding to European markets. Uber loses UK Supreme Court tax battle against rival operators. NYC approves scaled-back driver pay increase after industry pushback.

We break it all down for you.

Uber Challenges Over 100 Sexual Assault Claims as Fraudulent

SOURCE – Reuters

Uber claims it has identified more than 100 instances where passengers alleging sexual assault or harassment by drivers submitted fake or altered receipts to prove their ridership. The company filed court documents requesting a San Francisco federal judge to require 21 plaintiffs with questionable receipts to explain why their claims shouldn’t be dismissed, while asking 90 others to provide receipts or explain their absence.

• Uber faces thousands of passenger lawsuits across multiple jurisdictions stemming from alleged driver misconduct. At least 11 law firms represent the various plaintiffs in the federal case, which encompasses more than 1,450 claims nationwide, with hundreds of additional lawsuits pending in San Francisco Superior Court.

• Uber identified receipt fraud through mathematical errors, fake surcharges, incorrect driver names, improper timestamps, and formatting inconsistencies with company standards.

• Some fraudulent receipts appeared to be generated using third-party websites, with cases including duplicate receipts for single trips and different versions of the same receipt.

Waymo, Uber Partnership Shows Signs of Strain as Both Work with New Partners

SOURCE – QZ

Waymo and Uber’s autonomous vehicle partnership appears to be cooling as both companies pursue deals with different partners for robotaxi rollouts. Uber recently announced a deal with Lucid to launch a robotaxi program next year, while Waymo partnered with Avis Budget Group for a new Dallas ridesharing service.

• WedBush analysts suggest these moves signal deterioration in the relationship between the two companies, despite their ongoing collaboration in Atlanta and Austin. Analysts believe Uber’s strategy to protect its value proposition may put its relationship with Waymo at risk.

• Waymo operates independently through its own platform in San Francisco and Los Angeles, with analysts expecting similar first-party approaches for upcoming launches in Washington D.C. and Miami next year.

Lyft Completes Global Expansion with FREENOW Acquisition

SOURCE – Bloomberg (Paywall free)

Lyft officially completed its $197 million acquisition of European mobility platform FREENOW, doubling Lyft’s addressable market to over 300 billion personal vehicle trips annually. The acquisition gives Lyft immediate access to nine European markets including Germany, the UK, Ireland, Spain, Italy, France, Poland, Greece, and Austria, with FREENOW maintaining its local operations and leadership structure. 

• FREENOW CEO Thomas Zimmermann and his team will report to Lyft’s EVP Jeremy Bird, while country general managers continue leading local operations in their respective markets. 

• Both companies are offering welcome discounts of up to 50% for riders traveling between Lyft and FREENOW markets through the end of 2025. 

• Lyft stated it has no plans to cut staff from the combined organization. 

Uber Loses Major UK Tax Battle at Supreme Court

SOURCE – Reuters

The UK Supreme Court unanimously rejected Uber’s appeal seeking to impose a 20% VAT charge on rival taxi operators outside London, ruling that private-hire operators do not enter into contracts with passengers and therefore are exempt from the tax. This decision overturned a previous High Court ruling that favored Uber and ensures competitors like Delta Taxis and Veezu won’t face the same VAT obligations that apply to Uber following a 2021 Supreme Court ruling classifying Uber drivers as workers

• Delta Taxis’ legal team hailed the ruling as averting a “crisis” that would have severely impacted many private-hire operators across England and Wales.

• The decision highlights the different regulatory frameworks between London and the rest of England and Wales, with Uber noting the ruling has no impact on its own VAT obligations.

NYC Approves Reduced Driver Pay Increase After Industry Pushback

SOURCE – Transport Topics

New York City’s Taxi and Limousine Commission finalized new minimum pay rules for rideshare drivers with a 5% increase, down from the originally proposed 6.1% boost following strong opposition from Uber and Lyft. The companies warned that larger increases would force them to raise customer prices, leading to the scaled-back compromise.

• The updated rules factor in drivers’ unpaid time, including waiting for ride requests and traveling to passenger pickups, addressing long-standing driver coalition concerns.

• Uber and Lyft had been randomly locking out drivers since May 2023, initially claiming it was during low-demand periods but investigations revealed lockouts occurred virtually around the clock.

• The TLC board voted on the rules on June 25, with Uber indicating the new framework would likely help them avoid future driver lockouts.

Man Accepts Every DoorDash Order for 12 Hours Straight

SOURCE – YouTube Shorts

Spencer Joyce’s World on YouTube recently accepted every trip on DoorDash for 12 hours. How much did he make? Watch our YouTube Short to learn more!

QUICK HITS

• A DoorDash delivery worker recently saved a Blackstone employee from a shooter in Manhattan. – Fox Business

• DoorDash is fighting against increased regulations being proposed for delivery workers in NYC. – DoorDash blog

• The New York Times wrote about Keeta successfully displacing Deliveroo, the former market leader in Hong Kong, and now controls nearly half of the city’s food delivery market. – NYT

• 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

• “Negative 3 Stars”? The Worst Uber Ride Ever?

• Can Wridz Compete With Uber and Lyft? The 1-Year Breakdown

• Are Uber Drivers Worried About Autonomous Vehicles?

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