Weekly Roundup: Uber Strikes Major Robotaxi Deal with Lucid and Nuro

Uber secures massive robotaxi deal with Lucid and Nuro. DoorDash stock tumbles on valuation concerns despite strong growth. Trump’s tax-free tips policy offers limited benefits to rideshare drivers. GSA awards Uber a new five-year federal contract. NYC implements driver-friendly rules.

We break it all down for you.

Uber Strikes Major Robotaxi Deal with Lucid and Nuro

SOURCE – CNBC

Uber announced a partnership with EV manufacturer Lucid and autonomous driving startup Nuro to deploy 20,000 robotaxis over the course of six years. Uber is investing $300 million in Lucid, while Nuro will develop Level 4 self-driving technology for the vehicles and also receive a multi-hundred-million-dollar investment.

• The companies plan to launch the robotaxis in a major U.S. urban hub in 2026.

• Nuro, backed by Google and SoftBank, has a Level 4 system that enables fully autonomous operation without human intervention, competing with Waymo while surpassing Tesla’s current Level 2 systems.

• This partnership builds on Uber’s existing Waymo collaboration to compete more aggressively in the growing robotaxi market, with testing already underway at Nuro’s Las Vegas facility.

DoorDash Stock Falls on Analyst Downgrade Despite Strong Performance

SOURCE – Barrons

DoorDash shares dropped 2.5% to $236.77 after investment bank Jefferies downgraded the stock from “Buy” to “Hold,” citing valuation concerns despite the company’s strong execution. While they raised their price target to $250 and increased EBITDA estimates, they warned that the company’s recent affordability initiatives could impact revenue growth.

• Analysts remain optimistic about international expansion across 30+ countries and growth in new verticals beyond restaurant delivery in the U.S. market.

• DoorDash’s focus on promotions, discounts, and reduced fees for non-DashPass customers may boost order volume but could compress profit margins per order.

• The analysts noted that with DoorDash up 45% year-to-date and trading at a 120% premium to the broader internet sector, the stock’s growth potential appears fully reflected in its current price.

Trump’s “No Tax on Tips” Policy Would Offer Limited Benefits to Rideshare Drivers

SOURCE – The New York Times

President Trump's proposal to eliminate taxes on tips has broad political support and is becoming law, but rideshare drivers would see minimal benefits from the policy, according to an analysis from the New York Times. Full-time Uber or Lyft drivers who utilize the standard mileage deduction may not gain anything from the tip tax exemption because their existing business deductions already eliminate most or all of their tax liability.

• Only about 3% of American workers receive tips, and roughly one-third of those employees wouldn’t benefit from the policy due to existing deductions and low tax burdens.

• Drivers could potentially benefit if they receive refundable tax credits like the earned income tax credit, which provides cash payments even when no income tax is owed.

GSA Awards Uber New Five-Year Contract to Reduce Federal Travel Costs

SOURCE – GovCon Wire

The General Services Administration (GSA) has awarded Uber a new five-year blanket purchase agreement to provide ridesharing services for federal employees, military personnel, and government contractors worldwide. The contract is part of GSA’s OneGov strategy to centralize procurement and reduce travel costs through discounted commercial services.

• The renewed agreement expands on a previous $810 million BPA from 2020 and gives federal workers access to Uber for Business in over 15,000 cities across 70 countries.

• Uber indicated plans to potentially integrate additional services like meal delivery and fleet management to transform broader government service operations beyond just transportation.

• The new contract provides federal employees access to high-capacity vehicles and specialized transportation options through dedicated Uber for Business profiles for all rideshare activities.

NYC Taxi Commission Approves New Rules to Stop Uber and Lyft Driver Lockouts

SOURCE – The City NYC

New York City’s Taxi and Limousine Commission unanimously approved regulations requiring Uber and Lyft to give drivers at least 72 hours’ notice before cutting off app access and limiting lockouts to 16 hours except in special circumstances. The rules also include a 5% pay increase from 2024 levels and aim to stop the companies from manipulating utilization rates by suddenly deactivating drivers mid-shift.

• Driver advocates celebrated the changes after a yearlong campaign against what they called arbitrary lockouts that cost drivers up to 50% of their income during peak periods last summer.

• Both Uber and Lyft acknowledged the changes, with Uber noting the rules move away from tying pay directly to utilization rates, while Lyft expressed concerns the underlying pay formula could still reduce earning opportunities.

6 Insights To Increase Your Tip Money $$$

SOURCE – The Rideshare Guy

New York City's Taxi and Limousine Commission unanimously approved regulations requiring Uber and Lyft to give drivers at least 72 hours' notice before cutting off app access and limiting lockouts to 16 hours except in special circumstances. The rules also include a 5% pay increase from 2024 levels and aim to stop the companies from manipulating utilization rates by suddenly deactivating drivers mid-shift.

• Driver advocates celebrated the changes after a yearlong campaign against what they called arbitrary lockouts that cost drivers up to 50% of their income during peak periods last summer.

• Both Uber and Lyft acknowledged the changes, with Uber noting the rules move away from tying pay directly to utilization rates, while Lyft expressed concerns the underlying pay formula could still reduce earning opportunities.

QUICK HITS

• Wyndham Hotels struck a deal with GrubHub to provide food and grocery delivery within 6,000+ hotels. – Skift

• Jorge Aguilar of HowtoGeek writes about why he won’t drive for Uber or Lyft again, despite having a five star rating. – MSN

• The Nation writes about efforts to unionize rideshare and delivery workers in Chicago. – The Nation

• 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?

• Uber Drivers: NEVER Say These 5 Things To Passengers!

• 5 Lyft App Secrets Every Driver Needs to Know!

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

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