Weekly Roundup: Uber Posts Record Quarter, But Faces Legal Headwinds That Dampen Stock Performance

Uber posts record-breaking earnings but legal costs that spook investors. Lyft falls short of analyst expectations, announces strategy shift. DoorDash suffers its worst single-day stock drop ever. Senator Tuberville proposes federal English proficiency requirements for rideshare drivers. Waymo sued for AI bias after mislabeling a San Francisco doctor as a terrorist. We break it all down for you.

Uber Posts Record Quarter, But Faces Legal Headwinds That Dampen Stock Performance

SOURCE – The Wall Street Journal, MarketWatch

Uber reported strong third-quarter earnings with profit of $6.62 billion, compared with $2.61 billion a year earlier, though the gains were offset by significant legal charges that disappointed investors. Despite the operational strength, the stock failed to rally as legal expenses and autonomous vehicle investment costs overshadowed the otherwise robust performance.

• Uber’s rideshare trips reached all-time highs, maintained positive guidance for continued growth in mobility and delivery segments.

• Legal settlements and ongoing litigation costs created a one-time drag on profitability, though the underlying business fundamentals remain strong across all major markets.

• The company’s ventures into autonomous vehicle partnerships have yet to yield a profit for Uber. But analysts see investments in the technology as necessary for long-term competitiveness.

Lyft Shifts Strategy With International Expansion and Small-Market Focus

SOURCE – Reuters

Lyft announced plans to continue its international expansion and target growth in smaller U.S. cities as part of its strategy to compete more effectively with Uber’s dominant market position. The company’s third-quarter revenue hit a record high of $1.69 billion, though the 10.7% growth came in slightly slower than analysts’ estimates of an 11.5% rise, while adjusted core earnings of $138.9 million landed marginally below the estimate of $140 million.

• Despite the modest misses, the company reported upbeat bookings forecasts for the holiday quarter, signaling confidence in demand trends.

• Lyft achieved record operational metrics including 28.7 million active riders (up 18% year-over-year) and 248.8 million rides (up 15%), while generating over $1 billion in free cash flow for the trailing twelve months.

• Lyft historically focused exclusively on the North American market and concentrated on major metropolitan areas. In recent years, it has expanded to Europe through its acquisition of FREENOW and Canada.

DoorDash Shares Plunge 17% on Elevated Spending Plans Despite Strong Revenue

SOURCE – CNBC

DoorDash experienced its largest single-day stock decline ever, dropping 17% after the company announced plans for significant increases in marketing and operational spending that alarmed investors focused on profitability. DoorDash’s Q3 2025 profit was 55 cents per share, falling short of the 69 cents per share forecasted by analysts.

• While the delivery platform reported solid revenue growth and order volume, management’s guidance indicated higher-than-expected investment in customer acquisition and driver incentives for upcoming quarters.

• Despite the stock decline, DoorDash’s core business metrics remained healthy with order frequency and average order values both showing year-over-year improvement.

Senator Tuberville Proposes Federal English Proficiency Requirement for Rideshare Drivers

SOURCE – AL.com

Senator Tommy Tuberville (R-AL) is proposing a bill that would require rideshare drivers to demonstrate English proficiency to be able to drive for a rideshare service. The proposed bill would mandate that drivers pass an English language test before being approved to accept rides, citing passenger safety and communication concerns.

• The legislation faces uncertain prospects and would represent unprecedented federal regulation of rideshare driver qualifications, which have traditionally been set by individual platforms and state governments.

• Rideshare companies have historically opposed government-mandated driver qualification standards beyond basic background checks, preferring to maintain control over their independent contractor requirements. Uber and Lyft have yet to state their opinion on the bill.

Waymo Sued for Bias After AI Allegedly Mislabels SF Doctor as Terrorist

SOURCE – KQED

Waymo and its parent company Alphabet are being sued for alleged bias after the company’s AI system reportedly mislabeled a San Francisco doctor as a terrorist and banned him from being able to use Waymo rideshare. The lawsuit highlights growing scrutiny of how robotaxi companies will use AI to identify and classify passengers and pedestrians that can and can’t use services.

• The lawsuit adds to mounting concerns about racial and ethnic bias in AI systems used by transportation companies, potentially affecting regulatory approval for expanded autonomous vehicle deployments.

• The case may prompt increased regulatory oversight of AI systems in autonomous vehicles, potentially slowing the rollout of robotaxi services that threaten traditional rideshare driver employment.

Lyft CEO Explains Why Drivers Can’t Make More Money

SOURCE – YouTube Shorts

Lyft CEO David Risher appeared on The Verge’s “Decoder” podcast this week, where he answered Nilay Patel’s question about why Lyft can’t differentiate itself from Uber by paying drivers more. Learn more by watching the YouTube Short!

QUICK HITS

• Uber is reportedly in discussions to acquire Turkish delivery platform Getir as part of its strategy to expand its food and grocery delivery operations in international markets. – Bloomberg

• Five Uber and Lyft drivers were permanently banned from operating at Nashville International Airport following their participation in a February 2025 Tennessee Drivers Union protest advocating for better working conditions and limits on out-of-state. – The Tennessean

• Lyft CEO David Risher has publicly explained his preference for what he calls “Falcon Mode” management over a hands-off leadership approach, signaling a more active and detail-oriented leadership style. – Business Insider

• 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:

• RSG 267 – Dawood Mian from Auto Marketplace on NYC Ridehail Market, TLC , Waymos, etc.

• Are Long Lyft & Uber Rides Ever Worth It?

• Lyft Just Announced BIG Changes for Drivers But Will It Actually Help?

• Uber Just Changed The Airport Luggage Policy

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