Weekly Roundup: Uber Faces Legal Challenge Over AI-Powered Driver Compensation

Uber faces legal challenge over AI-powered driver compensation. Tesla battles Waymo and Uber to shape California’s new robotaxi regulations. Male drivers sue Uber and Lyft over gender preference features. Uber teams up with Starship to launch sidewalk robot deliveries across Europe starting next month. Citi Bike riders face the highest bike-share fees in the world under Lyft’s pricing model. We break it all down for you.

Uber Faces Legal Challenge Over AI-Powered Driver Compensation

SOURCE – The Guardian

The Worker Info Exchange (WIE), a non-profit foundation, has sent Uber a legal demand letter alleging the company violated European data protection law by using AI-driven algorithms to set driver pay rates that have significantly reduced driver incomes. The letter before action, delivered Wednesday, claims Uber breached GDPR regulations by training its algorithms on drivers’ personal historic data and working practices without proper consent.

• WIE partnered with Oxford University to publish research this summer showing that after Uber introduced “dynamic pricing” in 2023, many drivers earned “substantially less” per hour in real terms while Uber captured a higher share of fares compared to the previous transparent pay system

• The proposed legal case is expected to be filed in Amsterdam, where Uber’s European headquarters is located, and could seek collective compensation for affected drivers.

• The legal action alleges the “legal harm” began in 2020 with “upfront pricing”—where passengers receive set fare quotes, and that under GDPR, drivers can demand Uber stop using this technology.

Robotaxi Regulations Spark Competition Between Tesla, Waymo, and Uber

SOURCE – Business Insider

Tesla, Waymo, and Uber are battling to shape California Public Utilities Commission (CPUC) regulations governing robotaxi services as each company pursues different deployment strategies. In filings published Monday, Tesla disputed Waymo’s proposal requiring operators using advanced driver assistance systems (ADAS) to submit quarterly reports on miles traveled, collisions, and incidents.

• Tesla also pushed back against an Uber’s filing suggesting the regulator ensure ADAS-equipped vehicles aren’t marketed as fully autonomous or use “misleading” phrases like “self-driving” or “robotaxis,” a direct criticism of Tesla’s “Robotaxi” platform.

• ​​Waymo did join Tesla in recommending CPUC loosen restrictions on unaccompanied minors in driverless vehicles.

• California’s decisions will likely influence robotaxi regulations nationwide, as the state has historically set automotive standards that other jurisdictions adopt.

Male Drivers Sue Uber and Lyft Over Gender-Based Matching Features

SOURCE – Forbes

Lour male drivers have filed dual class action lawsuits against Uber and Lyft in San Francisco Superior Court, alleging gender discrimination over features that allow riders to request non-male drivers. The suits target Uber’s “Women Preferences” program and Lyft’s “Women+ Connect” feature.

• Men comprise approximately 80% of Uber’s workforce and 77% of Lyft’s drivers.

• The lawsuit seeks $4,000 in damages per affected male driver under California’s Unruh Civil Rights Act, which prohibits sex-based discrimination by businesses.

• The lawsuits claim male drivers are systematically excluded from ride matches when women.

Uber Teams With Starship to Begin Offering Robot Deliveries in Europe

SOURCE – Bloomberg

Uber has partnered with Starship Technologies to launch sidewalk robot deliveries starting in Leeds and Sheffield, UK, in December 2025, marking the company’s first autonomous delivery offering in Europe. Starship’s six-wheeled robots, operating at Level 4 autonomy, can complete deliveries in under 30 minutes for distances up to two miles from select Uber Eats merchants.

• San Francisco-based Starship operates the world’s largest autonomous delivery fleet with over 2,700 robots across more than 270 locations, having recently raised $50 million in Series C funding after surpassing 9 million completed deliveries.

• Uber currently offers autonomous deliveries with partners like Serve Robotics and Avride for thousands of merchants in nine cities across the US and Japan.

The move intensifies competition with DoorDash, which expanded its European presence through acquisitions of Wolt in 2022 and UK-based Deliveroo in October 2025.

Lyft Hoses Citi Bike Riders Compared to Bike-Share in Other Cities: Report

SOURCE – Streetsblog NYC

New York City’s Citi Bike system, operated by Lyft, charges the highest membership and casual ride fees compared to bike-share programs in major U.S., Canadian, and European cities, according to a new Independent Budget Office report. Annual membership costs have surged 77% in inflation-adjusted dollars from $95 in 2013 to $220 today, while casual riders pay $10.69 for a 15-minute e-bike trip compared to the next-highest rate of $8.49 in San Francisco.

• Lyft’s contract with the city requires non-members to pay at least 50% more than members, potentially shifting costs toward tourists and visitors, while the company’s Citi Bike revenue increased 60% from 2023 to 2024, though this represents just 3% of Lyft’s $5.8 billion in annual revenue

• Citi Bike is the only system among the eight studied that has never received government subsidies, while San Francisco and Chicago received public funding at some point in their history.

• The IBO recommended the city demand more transparency on operating costs and net revenues during the upcoming procurement process to determine if subsidies would benefit riders.

You’ve Been Working for Free for #Uber

SOURCE – YouTube Shorts

An Uber driver bought a $60K Honda CR-V at the pandemic’s peak, then got convinced to buy a second vehicle for Uber XL. Now he’s drowning in $3,000 monthly car payments and facing bankruptcy. Dave Ramsey’s brutal assessment? This driver is essentially working for free. Learn more by watching the YouTube Short!

QUICK HITS

• Waymo is expanding to Minneapolis, Tampa and New Orleans. – Reuters

• A DoorDash data breach exposed names, addresses and phone numbers. – 9to5Mac

• A class action lawsuit alleges that Allstate and its subsidiary North Light illegally sold Lyft rideshare insurance in California with policy exclusions that blocked valid claims, effectively depriving riders of required coverage. – BeInsure

• Harry Campbell weighs in on what the AV industry means for drivers. – Route Zero

• 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

• This New Uber Law Would Remove Thousands of Drivers

• Uber Rebrands Green to Electric BUT There’s a Catch

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