Drivers protest Waymo, Uber faces trial and drivers lose $550M. LegalRideshare breaks it down.
DRIVERS PROTEST WAYMO
Drivers are protesting Waymo. AP News reported:
Drivers for Lyft and Uber protested self-driving Waymo taxis in San Francisco on Friday, urging state regulators to exercise greater oversight of autonomous vehicles, given recent events in which the cars killed pets and blocked traffic.
About two dozen drivers and supporters spoke or held up signs calling for safer streets and greater accountability outside the offices of the California Public Utilities Commission, which met Friday to consider further regulations on autonomous vehicles.
A steady stream of Waymo cars drove past the protest, a testament to the growing ubiquity of the white cars in San Francisco.
“I personally am not against technology; what I am against is unfair treatment,” said Joseph Augusto, who drives for both Uber and Lyft. “We have these people, these companies, these autonomous vehicle companies who are driving around the city, and they don’t seem to be held to the same standards as us drivers.”
UBER FACES SEXUAL ASSAULT TRIAL IN AZ
Uber is facing a sexual assault trial in Arizona. Reuters reported:
Uber is set to face trial this week in Phoenix, Arizona, in a lawsuit brought by a woman who says she was sexually assaulted by a driver she booked through the app.
The trial will be the first test of Uber’s efforts to shield itself from liability for alleged assaults committed by its drivers, with thousands of cases pending in U.S. federal court.
Uber is facing more than 3,000 lawsuits over similar claims that have been consolidated in federal court. The verdict in Dean’s lawsuit, which is considered a “bellwether” or test case for the litigation, could be used to determine the value of the lawsuits for any potential settlement or resolution of the cases en masse.
The outcome of the litigation could weigh on Uber’s balance sheet and complicate its relationships with regulators and investors who have closely tracked its safety record.
Uber has argued it should not be held liable for criminal conduct by drivers who use its platform, saying that its background checks and disclosures about assaults are sufficient. The company maintains that its drivers are independent contractors rather than employees, but that regardless of their classification it cannot be responsible for actions that fall outside the scope of what could reasonably be considered their duties.
DRIVERS LOST $550M IN POTENTIAL TIPS
UberEats and DoorDash are under fire for allegedly curtailing tips. Seeking Alpha reported:
A New York City Department of Consumer and Worker Protection (DWCP) report alleges that Uber Eats (UBER) and DoorDash (DASH) designed their customer interfaces in ways that discouraged tipping, resulting in more than $550 million in lost gratuities for delivery drivers.
“Our report blows the whistle on a massive scheme by Uber and DoorDash to drive down worker pay by more than $550M,” said DCWP Commissioner Samuel A. A. Levine.
Under new worker protection laws regarding tips, third-party food and grocery delivery apps must offer a 10% tip option and allow tipping before or during order placement. Employers must also ensure timely pay of tips (within 7 days), and are prohibited from keeping gratuities or using tip credits if workers spend significant time on non-tipped duties.
“If companies do not follow new tipping laws going into effect later this month, they will face significant consequences,” Levine warned.
According to the report, after DCWP began enforcing the delivery worker minimum pay rate in December 2023, Uber (UBER) and DoorDash (DASH) designed changes to their interface which made it more difficult to leave tips for delivery drivers.The study found that tipping decreased immediately after Uber Eats (UBER) and DoorDash (DASH) made these changes, declining to just $0.76 per delivery compared to an average tip of $2.17 per delivery on restaurant delivery apps that offer a tipping option at checkout.
The changes have resulted in a $554M decrease in Uber Eats and DoorDash (DASH) workers’ tips, or approximately $5,800 per worker per year, the report claims.
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