Weekly Roundup: DoorDash and Uber File Joint Lawsuit Against NYC’s Mandatory Tipping Law

DoorDash and Uber sue NYC over mandatory 10% tipping prompts. Uber CEO calls robotaxis a “trillion-dollar” opportunity and targets Asia for major expansion. Lyft’s turnaround under CEO David Risher generates $1 billion in cash after years of losses. Uber debuts phone-free kiosks at LaGuardia Airport for app-less ride booking. Tesla secures Arizona permit to launch autonomous rideshare service in Phoenix. We break it all down for you.

DoorDash and Uber File Joint Lawsuit Against NYC’s Mandatory Tipping Law

SOURCE – Bloomberg

DoorDash and Uber have jointly filed a lawsuit to block New York City laws requiring delivery apps to display a tipping option at checkout with a minimum default of 10%, set to take effect January 26. The companies argue the mandate violates their First Amendment rights by forcing them to endorse the city’s preferred message on tipping. The lawsuit follows the apps’ 2023 decision to move tipping prompts to post-checkout after NYC implemented a $21.44 minimum wage for delivery workers.

• After the minimum wage law took effect, customers tipped 64% less while paying about 45% more in fees per delivery order, according to 2024 city data.

• Tips dropped from 50% of delivery worker earnings to just 13% per hour in Q2 2025, though overall worker pay increased under the new minimum standard.

• DoorDash estimates the tipping requirements could cost millions in lost orders over the next year, due to consumer “tipping fatigue” and sticker shock.

Uber CEO Targets Asia for “Trillion-Dollar” Robotaxi Expansion

SOURCE – Business Insider

Uber CEO Dara Khosrowshahi announced plans to expand robotaxi services to more than 10 markets by the end of 2026, with Asia identified as the primary growth region for what he calls a “trillion-dollar-plus” opportunity. Khosrowshahi highlighted Japan as having “great potential” due to its aging population, while also naming Hong Kong and Australia as key targets. The company now partners with over 20 autonomous vehicle providers including Chinese firms Baidu, WeRide, and Pony.ai.

• Uber’s existing robotaxi markets in Austin and Atlanta with Waymo are already showing faster growth than other U.S. markets.

• ​​Despite the hype, Alphabet’s Waymo division lost $1.42 billion in Q3, and each vehicle costs approximately $150,000 to produce.

• McKinsey estimated the shared autonomous mobility market could reach $1 trillion by 2030 if robotaxis successfully scale.

Uber Launches Phone-Free Kiosks for Airport Ride Booking

SOURCE – Engadget

Uber has introduced physical kiosks that allow travelers to book rides without using the mobile app, with the first installation at LaGuardia Airport’s Terminal C in New York City. Passengers can enter their destination and ride type at the kiosk, then receive a printed receipt with trip details. The company plans to expand kiosks to additional airports, hotels, and ports in the coming months.

• The kiosks position Uber as a more direct competitor to traditional taxi dispatch services by removing the app barrier.

• Uber also announced its shuttle bus service is now available at Newark Liberty International Airport, completing coverage of all three major NYC-area airports.

• The rollout follows Uber’s busiest-ever Thanksgiving period for airport pickups, prompting expanded accessibility solutions.

Lyft CEO David Risher’s Turnaround Strategy Drives Profitability and Growth

SOURCE – Semafor

Semafor interviewed Lyft CEO David Risher, where they discussed the rideshare company’s turnaround that swung the company from consuming $300 million in cash annually to generating $1 billion in the 12 months prior to September 2025. Risher, a former Amazon executive, implemented immediate changes including lowering rider prices by 10-20%, introducing driver earnings guarantees, and restructuring the company to focus executives on specific constituencies like riders, drivers, and autonomous vehicles rather than functions.

• Lyft’s stock has doubled since Risher took over, and the company now reports record numbers of active passengers and drivers.

• The company made its first international expansion with a $197 million acquisition of European mobility app FREENOW, entering nine countries.

• Risher expects autonomous vehicles to represent 10% of Lyft’s business by 2030, with partnerships including Waymo, Baidu, and May Mobility.

Tesla Receives Arizona Permit to Launch Robotaxi Service

SOURCE – Transport Topics

Tesla received a Transportation Network Company permit from the Arizona Department of Transportation on November 17, clearing the final regulatory hurdle to operate autonomous rideshare services in the state. The permit allows Tesla to offer rides to the public using automated driving systems with a human safety monitor present, initially targeting the Phoenix area. CEO Elon Musk has stated the company aims to launch ridesharing services in Arizona, Nevada, and Florida by the end of 2025.

• Tesla completed Arizona’s approval process in just four days after applying on November 13, though the company had been working with ADOT since June.

• Current regulations require a human operator to supervise the automated system during commercial operations, similar to Tesla’s California deployment.

• Arizona has become a major autonomous vehicle hub, with Waymo currently covering a 315-square-mile service area in the greater Phoenix metro.

QUICK HITS

• Lyft CEO David Risher purchased another 5,030 units of Lyft stock. He now owns 11,802,296 shares worth an estimated $242 million. – GuruFocus

• Uber is reducing incentives for drivers with electric vehicles, deterring many from switching from gas or hybrid cars. – Gizmodo

• Police are investigating after a man was discovered hiding in the trunk of a driverless Waymo in Los Angeles, startling passengers who canceled the ride and called 911. – CBS News

• 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:

• RSG268: Uber’s NEXT Big Move? Taxis!

• How Smart Drivers Stay Profitable on Uber & Lyft (3 STEP STRATEGY)

• Stop Renting From Uber & Lyft! Meet Drive Whip (Multi-App Rental)

• Riders Are SUING Over Insurance Fees

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