A drug dealer review-bombs a driver, Uber fights Illinois and Lyft's stock takes a hit. LegalRideshare breaks it down.
A drug dealer gives a gig worker one star. Business Insider reported:
An Uber worker received a one-star review from a customer who was angry that she reported a suspicious package to a police station.
It turned out that the worker from Sydney was right to trust her gut because it contained two grams of crystal methamphetamine hidden in a toothpaste tube.
The worker said she tried to call Uber Eats but didn't get a response, so she flagged the incident on an online form.
A week later, the customer was still on the app, along with the one-star review, while the worker had not been paid for the delivery.
Uber and Lyft go after a new bill in Illinois. WFI Radio adds:
State Rep. Jennifer-Gong Gershowitz, D-Glenview, introduced House Bill 2231, which would set up a new standard for companies like Uber and Lyft by getting rid of an exemption that says rideshare companies are not responsible for their passengers' safety.
The measure comes after an Illinois woman was sexually assaulted by her ride-share driver and sued the company but lost in court due to those companies not being legally responsible for her safety.
Gong-Gershowitz explained her measure during the House debate.
“House Bill 2231 puts rideshare companies like Uber and Lyft on the same playing field as taxis and other common carriers,” Gong-Gershowitz said. “The policy rationale for granting this statutory exemption nearly a decade ago no longer makes sense, and its extended use harms public safety.”
Uber said the cost of the measure will be something Illinois will not be able to handle and urged customers to fill out a petition against the measure.
Uber met expectations and bookings went up. Yahoo! Finance reported:
Gross bookings for the company jumped 19% year-over-year, while the company's Mobility business continued to improve with revenue climbing 40% year-over-year. Adjusted EBITDA tallied $751 million, up from $168 million the same period last year.
Shares rose more than 10% on Tuesday following these results.
Uber expands its pool. Fox Business reported:
UberX Share will be expanded to Baltimore, Miami, Nashville, Philadelphia and Washington, D.C. “in the coming weeks,” Shin-Pei Tsay, the head of Cities & Transportation Policy at Uber, said in a post.
The company re-launched the program in New York City, Los Angeles, Chicago, San Francisco, Phoenix, San Diego, Portland, Indianapolis and Pittsburgh last summer after briefly pausing in 2020.
“We are now launching UberX Share, I would say, in the right way with economics at work. We are aligning incentives between the rider and the driver and ourselves in terms of pricing as well,” Uber CEO Dara Khosrowshahi told investors during its first quarter earnings call Tuesday.
Lyft's stock takes a beating. CNBC reported:
Lyft shares dropped nearly 15% in extended trading on Thursday after the ride-hailing company issued a weaker-than-expected forecast for the second quarter.
Lyft reported a net loss of $187.6 million, including stock-based compensation costs and related payroll expenses of $186.6 million. In the year-ago period, the company lost $196.9 million.
“We're improving our rideshare service and are thrilled with the early results,” Lyft CEO David Risher said in a statement. “Riders are taking more rides and drivers have the power to earn more.”
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