Since the coronavirus outbreak, Uber’s business slumped between 60 and 70 percent. After saying in February that it expected to generate between $16 billion and $17 billion this year, the company now says it cannot forecast its revenue. D.A. Davidson senior research analyst Tom White said that, with regard to ride-sharing, “the whole country is going to be down 70 to 80 percent.” The coronavirus has also highlighted a crucial labor issue: whether ride-share drivers are considered employees or independent contractors. Continue reading Ride-Sharing Slumps, Leaving Uber and Lyft Drivers in Limbo

In Chicago, Uber Technologies rolled out Uber Works, an app that matches workers with companies looking to fill temp positions. Uber will work with TrueBlue and other staffing companies, but will set the wages via an algorithm. The launch of the app comes as the company is under fire by regulators and struggles to make a profit. California, for example, just passed a law that would force companies to reclassify gig workers from independents to employees. Uber (and Lyft) spent money this year opposing the recently passed law. Continue reading Uber Intros App to Match Workers with Array of Temp Jobs

On Wednesday, California Governor Gavin Newsom signed Assembly Bill 5 (AB5), a law that will classify some independent contractors as employees and takes effect January 1. Companies such as Lyft and Uber Technologies, whose employees are among those that might be reclassified, redoubled both their resistance to the law and plans to negotiate again with relevant labor unions. At the same time, these companies are making noise about initiating a ballot-measure campaign to rewrite the standards for independent contractors. Continue reading Gig Economy Companies Responding to New California Law

The California State Assembly gave its final approval, in a 56-to-15 vote, for AB5, a bill that strikes a blow against the gig economy, forcing companies such as Lyft and Uber to treat contract workers as employees. The bill originally passed in the State Senate in a 29-to-11 vote and applies to all app-based companies. Governor Gavin Newsom, who endorsed the bill, is expected to sign it; the law will go into effect January 1. Uber has stated it will do “whatever it takes” to keep their drivers independent contractors. Continue reading California Law Limiting Gig Economy to Take Effect January 1

SoftBank Group wants to buy 17 percent to 22 percent of Uber Technologies, via a combination of share purchases from the company and a tender offer to employees and investors. The deal would only work if SoftBank can convince Uber’s shareholders to sell their stock at a discount. According to sources, the bank’s investment could total as much as $10 billion, which would make it the largest-ever single investment in a private venture-backed startup. SoftBank also wants two board seats, adding to Uber’s nine current directors. Continue reading SoftBank Leads Investment In Uber That Could Hit $10 Billion

Fast-food chain Taco Bell is teaming with ride-sharing firm Lyft to offer passengers a “Taco Mode” in the Lyft app for requesting rides between 9:00 p.m. and 2:00 a.m. that include a stop at a Taco Bell drive-through. The option will be tested around Newport Beach, California the next few weeks, and will likely expand nationally in 2018. “I kind of think of this like inverse delivery — like we’re delivering you to Taco Bell,” said Marisa Thalberg, Taco Bell’s chief marketing officer. “You’re being delivered to the food as opposed to having to get in your own car and drive.” Continue reading Taco Bell Is Experimenting With New Marketing Vehicle: Lyft

Google aims to take on Uber and Lyft more directly with the expansion of its carpool service on the Waze navigation app. Instead of riders hailing cars, the Waze service relies on drivers to pick up people heading in the same direction. The price is much lower than Uber because riders pay up to 54 cents a mile, the IRS’ reimbursement rate for business travel. Google plans to bring the Waze car-sharing service to several cities in the U.S. and Latin America over the next several months. Continue reading Google Plans Expanded Launch of Waze Car-Sharing Service

A viral campaign over the weekend to #DeleteUber took place in response to Uber’s actions or perceived actions surrounding President Trump’s immigration ban. Although Uber vowed to compensate drivers stranded overseas and set up a $3 million legal fund for those drivers, users weren’t appeased and the Internet was abuzz with thousands of photos of people deleting the Uber app from their phones. As a result, on January 29 Lyft had more downloads than Uber on iOS for the first time ever, according to App Annie. Continue reading Social Campaign to Delete the Uber App Works in Lyft’s Favor

Alphabet just spun off its research lab X’s autonomous vehicle project into a separate company named Waymo, to be led by chief executive John Krafcik. The move means the company believes its driverless car technology is nearing readiness for commercialization, due to advancements in sensor technology and breakthroughs in machine learning. Although Alphabet was an early leader in this field, the company has struggled to build a business around the technology, as Tesla, Uber and GM have moved forward. Alphabet is working with Fiat Chrysler on a ride-sharing service to launch next year. Continue reading Alphabet’s Waymo Driverless Vehicle Unit Partners With Fiat

After two years of spending big to succeed in China, Uber has thrown in the towel and made a deal with rival Didi Chuxing. As a result, for a 20 percent stake, Uber China will become part of the larger Chinese company, which is valued at $35 billion. Prior to the deal, Didi was valued at $28 billion. Uber purportedly spent more than $2 billion in China. Meanwhile, Uber is using some of the $13.5 billion raised recently from investors to double-down on its global mapping project, with a $500 million investment. Continue reading Uber Inks Deal with Chinese Rival Didi, Focuses on Mapping

Japan’s SoftBank Group has agreed to acquire United Kingdom’s ARM Holdings for more than $32 billion in an all-cash deal, which insiders suggest marks a major move by the Japanese telecom toward the mobile Internet. As a top designer of chips for companies such as Apple and Samsung, ARM dominates the smartphone market and is a leader in the mobile revolution. Its designs appear in a range of devices, including Internet of Things sensors. The number of chips featuring ARM processors reached 14.8 billion in 2015, up from 6.1 billion five years earlier. Continue reading SoftBank to Purchase UK-Based Chip Designer ARM Holdings

Riding-sharing app Uber has tussled with its drivers over how to define their status: independent contractors or full-time employees. Uber prefers to identify its drivers as independent contractors, which lets it off the hook for paying minimum wage, overtime and its share of Social Security. Recent settlements in class-action lawsuits in California and Massachusetts, which must be approved by a judge, allow Uber to continue this classification. The Teamsters union is busy organizing drivers who want representation. Continue reading Teamsters Organize Uber Drivers Classified Indie Contractors

Electric cars, autonomous cars and ride-sharing are all disruptors in the automotive industry, but General Motors, for one, is focusing on taking advantage of opportunities in changing times. The company just launched Maven, a program that aggregates its various car-sharing efforts, with a team of 40 GM staff and others from Google, Zipcar and Sidecar, with the goal of developing additional car-sharing services. First up is a car-sharing trial in Ann Arbor, Michigan, focusing on the university community. Continue reading GM Debuts Maven, Program for Several Car-Sharing Initiatives

Uber Technologies is tweaking how it does business. In California, the ride-sharing company will no longer reject potential drivers due to a nonviolent or nonsexual offense, such as petty theft or check fraud. It will also tell those rejected why and describe steps they can take to reduce their felony conviction to a misdemeanor. Uber is also now promising drivers more money to work during heavy demand periods, and is inviting smartphone app developers to create customized “trip experiences” for riders. Continue reading Uber Adjusts its Employment Policies and Calls for New Apps

Facebook users will soon be able to start hailing an Uber ride without leaving the Messenger app. The new partnership will also allow the Uber service to capitalize on Facebook Messenger’s millions of users. Facebook plans to add other ride-sharing companies in the coming months. The new service is part of Facebook’s strategy to emulate rival Asian apps such as WeChat, which already allows users to message each other, hail rides, and shop for goods and games. Continue reading Facebook Adds Uber Ride-Hailing Service to Messenger App