Weekly Roundup: Uber Beats Revenue Expectations with 20% Growth, But Stock Falls on Weak Profit Outlook

Uber posted strong revenue growth, but is navigating profitability challenges. Waymo reveals it hires backup safety drivers in the Philippines. A landmark sexual assault verdict could reshape liability standards for platforms. Lyft launches teen service. Rideshare drivers continue to refuse service animals. We break it all down for you.

Uber Beats Revenue Expectations with 20% Growth, But Stock Falls on Weak Profit Outlook

Source: CNBC

Uber reported Q4 2025 revenue of $14.37 billion (up 20% year-over-year), beating estimates with mobility revenue growing 19% to $8.2 billion and delivery surging 30% to $4.9 billion. Shares fell 4% on weak Q1 profit guidance, with net income dropping to $296 million from $6.88 billion due to a $1.6 billion equity investment headwind. Gross bookings hit $54.1 billion and monthly active users reached 202 million, up 18% year-over-year.

• The company’s weaker profits were attributed to higher taxes and strategic pricing initiatives to offer more affordable rides to customers in order to grow bookings and acquire new users, while delivery business growth was strongest in the Europe, Middle East, and Africa region.

• CEO Dara Khosrowshahi said Uber expects to facilitate AV trips in up to 15 cities globally by end of 2026 and aims to be “the largest facilitator of AV trips in the world” by 2029, with expansion planned for Houston, LA, San Francisco, London, Munich, Hong Kong, Zurich, and Madrid., and Madrid.

• Uber announced the promotion of finance executive Balaji Krishnamurthy to CFO, replacing Prashanth Mahendra-Rajah who is departing the company.

Waymo Faces Congressional Heat Over Offshore Remote Operators

Source: Business Insider

Waymo representatives faced Senate questioning as some lawmakers accused the company of being “anti-American” by hiring remote foreign workers as back-up safety drivers and using Chinese automobiles. Senator Bernie Moreno questioned if Waymo was sidestepping federal “connected vehicle” rules, while Senator Ed Markey called Waymo’s use of remote operators in countries like the Philippines “completely unacceptable.” Waymo representatives defended the partnerships, stating Chinese-made vehicles have “no connectivity” and all driving systems are U.S.-installed with no data sharing abroad.

• Remote operators step in when robotaxis encounter unusual situations, but Senator Markey raised concerns about overseas workers needing to react “in a split second” during dangerous scenarios from thousands of miles away.

• Waymo first partnered with Zeekr in 2021 and has spent several years adapting and testing a minivan-style vehicle for its robotaxi program, recently announcing plans to rename the Zeekr robotaxi to “Ojai” due to concerns about brand familiarity with U.S. consumers.

• Waymo and Tesla executives urged Congress to establish a national AV regulatory framework, warning that without federal action, the U.S. risks falling behind China in setting global self-driving standards.

Uber Hit with $8.5 Million Verdict in First Bellwether Sexual Assault Trial

Source: Reuters

A Phoenix jury ordered Uber to pay $8.5 million to Jaylynn Dean, who was sexually assaulted by a driver at age 19, in the first bellwether trial of over 3,000 similar lawsuits. The jury found the driver was Uber’s agent, holding the company responsible, but declined punitive damages and rejected negligence claims. Dean’s attorneys sought $140+ million, arguing Uber marketed itself as safe while failing to act despite knowing of assault incidents.

• Uber will appeal and noted the jury’s rejection of negligence claims “affirms that Uber acted responsibly and invested meaningfully in rider safety.”

• This verdict could significantly influence thousands of pending cases against Uber, as bellwether trials test legal theories and gauge settlement values, with Uber facing 500+ similar California cases. state court.

• The case centered on driver liability, with Uber arguing drivers are independent contractors and it can’t be responsible for actions outside their duties, noting the driver had no criminal history, 10,000 trips, and a nearly perfect rating.

Lyft Launches Teen Rides Feature to Compete with Uber’s Three-Year Head Start

Source: Bloomberg (Paywall free)

Lyft is rolling out “Lyft Teen” early this year across hundreds of U.S. cities, catching up to Uber’s 2023 launch. The service allows ages 13-17 to ride with high-rated drivers, featuring mandatory PIN authentication, automatic audio recording, and real-time parent tracking. CEO David Risher said it matches teens with drivers meeting “highest standards” while offering “transparency for parents every step of the way.”

• The announcement marks a reversal for Lyft, which previously barred minors from using its service unaccompanied.

• Uber’s teen program has expanded to more than 50 countries worldwide since its 2023 launch, allowing teens to operate their own accounts with their own payment methods while parents maintain control through family profiles with spending limits and monthly budgets.

• Since turning cash-flow positive in 2024, Lyft has invested in user base expansion, launching apps for elderly users and expanding into Canada, Puerto Rico, and Europe via its Freenow acquisition.

Rideshare Drivers Repeatedly Violate Federal Law by Refusing Service Animals, Despite Company Policies

Source: NBC Connecticut I-Team

Victoria Morgan, with a psychiatric service dog Aphrodite for PTSD, reports at least four Lyft drivers refused service, violating the ADA, one tried forcing the dog in the trunk, another screamed at her. Despite Lyft’s policy requiring service animal accommodation with permanent deactivation for violations, similar incidents have been reported across Las Vegas, New Orleans, and Memphis. Bill DeMaio of the ADA Coalition of Connecticut receives calls “maybe once a week” about driver refusals and notes federal law prohibits requiring proof of disability.

• Lyft said “discrimination has no place in the Lyft community” and drivers who knowingly violate the policy face permanent deactivation, noting all drivers receive service animal education during onboarding plus periodic ADA reminders.

• Each time Morgan was refused, she received an apology and $10 credit, which she says is insufficient, leading her to stop using Lyft rather than risk being “left out in the cold” again.

• DeMaio encourages affected individuals to document incidents and file DOJ complaints in New Haven, which can fine Lyft, as rideshare companies fall under Title III ADA non-discrimination requirements.

QUICK HITS

• To stand out against Uber Eats and DoorDash, GrubHub is removing service fees on orders over $50. – TechCrunch

• Uber CEO Dara Khosrowshahi says Uber Eats may end up playing a key role in the company’s robotaxi business, saying robotaxis could deliver groceries, freight and restaurant food. – Business Insider

• The Government Accountability Office is conducting a congressional study on assaults in the rideshare and taxi industries and is recruiting drivers for small virtual discussion groups. Interested drivers can complete a 5-minute screening survey at the link. – GAO SURVEY

• 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!

• Is This the End of Unjust Bans? New 2026 Law

• Why This Top Uber Driver Walked Away

• An Uber Driver Just Saved A Woman From Being Scammed Of $20,000

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