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Weekly Roundup: Uber Found Not Liable in Landmark Sexual Assault Case
Uber found not liable in first sexual assault trial. Empower agrees to shut down operations in Washington D.C. Uber acquires Segments.ai to expand its AI data labeling business. Lyft CEO David Risher says he drives, but has only completed 47 rides in 2.5 years. Driver-first platform YRide shuts down.
We break it all down for you.
Uber Found Not Liable in Landmark Sexual Assault Case

Image source: Aleksandr Sochnev/Pexels
SOURCE – The New York Times
A California jury ruled that Uber is not responsible for a 2016 sexual assault by one of its drivers, marking the first trial outcome in hundreds of pending lawsuits against the company. While the jury found Uber negligent in its safety practices, the jury determined this negligence was not a “substantial factor” in causing harm to the plaintiff, sparing the company from damages in this closely-watched bellwether case.
This verdict could significantly influence settlement negotiations and future trial strategies as additional cases move through the courts.
Court documents revealed that 558,000 Uber trips between 2017 and 2024 resulted in sexual assault reports, dramatically exceeding the company’s public safety disclosures.
The company remains under intense scrutiny from regulators and a House committee probe into its handling of sexual assault allegations.
Driver-First Platform YRide Shuts Down Due to Funding Challenges

Image source: YRide
SOURCE – Show Me The Money Club
YRide, a driver-first rideshare platform that promised zero commission and 100% fare retention for drivers, announced it is closing operations due to insurmountable funding constraints. The company shared the news with its driver partners, expressing “deep regret” and acknowledging that despite tireless efforts to build an alternative to Uber and Lyft, financial challenges proved too difficult to overcome at this stage.
YRide joins a growing list of alternative rideshare platforms that have struggled to compete with Uber and Lyft’s market dominance, including Empower’s forced shutdown in D.C. and Revel’s exit from New York City rideshare earlier this year.
YRide’s business model allowed drivers to keep 100% of fares after external fees, with the company taking zero commission, a stark contrast to traditional rideshare platforms that typically retain 25-30% of each fare.
The company thanked drivers for their “dedication, trust, and support,” calling the closure “not just the end of an app, but the pause of a shared dream we built together.”
Empower CEO Avoids Jail, Agrees to Shut Down DC Operations

Image source: Pixabay/Pexels
SOURCE – Washington Post
Joshua Sear, CEO of ride-hailing startup Empower, agreed to cease operations in Washington, D.C. after a judge threatened him with jail time for contempt of court. The company, which positioned itself as a driver-friendly alternative to Uber and Lyft, had been locked in a lengthy legal battle over compliance with local transportation regulations.
Empower has argued it operates as a software-as-a-service company, not a transportation network, providing subscription-based tools that allow drivers to run their own independent rideshare businesses.
Empower was fined millions of dollars for operating without proper licensing and ignoring court orders to comply with D.C.’s regulatory framework.
The company has two weeks to wind down operations, though Sear indicated he will explore alternative ways to serve D.C. drivers and riders.
Uber Acquires Belgian AI Startup to Expand Data Labeling Business

Image source: Segments.ai
SOURCE – Bloomberg (Paywall free)
Uber announced the acquisition of Segments.ai, a Y Combinator-backed Belgian startup specializing in multi-sensor data labeling for autonomous vehicles. The deal strengthens Uber’s AI Solutions division, which provides data annotation services to companies developing AI and autonomous vehicle technology.
Segments.ai’s founders and entire team will join Uber AI Solutions, doubling down on the company’s LiDAR and multi-sensor data annotation capabilities.
Uber has been piloting a program allowing drivers in India to earn extra income during downtime by completing data-labeling tasks on the app.
The acquisition positions Uber to compete in the lucrative AI training market, where competitors like Scale AI have reached $1 billion in annual revenue.
Is Lyft CEO David Risher Driving Enough to Understand Driver Challenges?

Image source: David Risher/LinkedIn
SOURCE – Katie Couric
In recent interviews, Lyft CEO David Risher discussed how he drives for the platform incognito to understand rider and driver experiences firsthand. He said these interactions on the road have directly shaped company policy, but RSG Senior Contributors Sergio Avedian and Chris Gerace noted Risher may not be driving enough to truly understand the logistics of his platform.
Risher says he drives “to learn, not to earn,” using these rides to gain customer insights he couldn’t get from his executive office, describing the practice as diving deep “like a falcon spotting its next meal.”
However, Sergio and Chris argued that 47 rides may be insufficient to understand platform operations, noting that full-time drivers can complete 47 rides in a single day, and that such limited exposure prevents Risher from experiencing common driver frustrations, like cancellations, inadequate support, and scheduling issues.
Passenger Kicked Out for Laughing Too Hard. Justified?

Passenger Kicked Out for Laughing Too Hard. Justified?
SOURCE – YouTube Shorts
Drivers, how do you handle passengers who are being obnoxious, but not necessarily putting you into danger? This video has been circulating this week, of a few passengers who said they got kicked out because of her friend’s obnoxious laugh. Learn more by watching the YouTube Short!
QUICK HITS
DoorDash unveiled “Dot,” its first in-house autonomous delivery robot that can travel up to 20 mph and carry 30 pounds, with initial deployment in Arizona and plans to expand to additional markets by year-end. – CNBC
Uber Eats announced its first drone delivery partnership with Israeli startup Flytrex, planning to launch test markets in the U.S. by the end of 2025. – Fox News
Uber and Bolt’s entrance into Kenya’s lucrative safari tourism market has sparked fears among traditional tour operators that the platforms will drive down prices in a sector that accounts for 10% of Kenya’s GDP. – Semafor
The Independent Drivers Guild, an Uber-funded organization, is opposing New York City Council legislation that would protect rideshare drivers from arbitrary deactivations. – Documented
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:
RSG266: Tower Mobility: The Uber Partner Paying Drivers $25/Hour + Benefits
Can ANY Company Compete with Uber & Lyft With Wridz Shutting Down in Minnesota?
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