A California judge fined Uber $59 million on Monday, and threatened to suspend its permit to operate in the state if the ride-hailing giant doesn't pay the penalty and answer regulators' questions within 30 days. From a report: Last December, an administrative law judge ordered Uber to answer the California Public Utility Commission's questions related to a long-awaited safety report, which listed, among other things, thousands of sexual assaults during rides from 2017-'19. The CPUC, which regulates ride-hailing in California, wanted more information about how the report was compiled, and specific details about the assaults so they could be investigated by the state. Uber refused to comply, claiming it would infringe on victims' privacy, even after a judge earlier this year said the company could turn over information under seal to protect confidentiality. The judge Monday agreed that Uber can use signifiers other than names to protect victims' anonymity.

Zoox, the self-driving startup owned by Amazon.com, unveiled a fully autonomous electric vehicle with no steering wheel that can drive day and night on a single charge. From a report: The vehicle, which Zoox describes as a driverless carriage or robotaxi, can carry as many as four passengers. With a motor at each end, it travels in either direction and maxes out at 75 miles per hour. Two battery packs, one under each row of seats, generate enough juice for 16 hours of run time before recharging, the company said. To commercialize the technology, Zoox plans to launch an app-based ride-hailing service in cities like San Francisco and Las Vegas. "This is really about re-imagining transportation," Zoox Chief Executive Officer Aicha Evans said in an interview with Bloomberg Television. "Not only do we have the capital required, we have the long-term vision." The company also plans to launch ride-hailing services in other countries, Evans said. Executives didn't say how much rides would cost but that they would be "affordable" and competitive with services operated by Uber Technologies and Lyft. Nor did they say when the service would launch but confirmed it wouldn't happen in 2021.

Uber's self-driving unit, Advanced Technologies Group (ATG), is being acquired by its start-up competitor Aurora Innovation, the companies announced Monday. From a report: The deal, expected to close in the first quarter of 2021, values ATG at approximately $4 billion. The unit was valued at $7.25 billion in Apr. 2019 when Softbank, Denso and Toyota took a stake. Uber CEO Dara Khosrowshahi will join the company's board, and the ride-sharing giant will invest $400 million into the company. Overall, Uber and ATG investors and employees are expected to own a 40% stake in Aurora, according to a regulatory filing accompanying the deal; Uber alone will hold a 26% stake. The start-up is being valued at $10 billion in the transaction, according to a person familiar with the terms of the deal.

Uber is in advanced talks to sell its Uber Elevate unit to Joby Aviation, Axios reported Wednesday, citing multiple sources. A deal could be announced later this month. From the report: Uber Elevate was formed to develop a network of self-driving air taxis, but to date has been most notable for its annual conference devoted to the nascent industry. The sale comes as Uber CEO Dara Khosrowshahi's works to attain profitability, and follows partial sales of Uber's money-losing freight and self-driving units. Axios had previously reported that Uber was seeking a buyer. Elevate had a helicopter service running in New York City, but suspended those operations during the pandemic. At last check, the unit had around 80 employees.

The U.S. Securities and Exchange Commission has proposed rule changes that would make it possible for gig companies to give equity to their workers as part of their compensation if they meet certain requirements. From a report: This is something gig companies including Uber and Airbnb have asked the SEC to do over the years as a way to share their companies' upside with these non-employees. Instead, both Uber and Lyft gave certain long-time drivers cash and the ability to purchase IPO shares when they went public, while Airbnb is putting 9.2 million shares into an endowment it will use to finance initiatives for hosts. The five-year pilot program would allow gig companies to issue equity as long as it's no more than 15% of a worker's compensation during a 12-month period, and no more than $75,000 in value during a 36-month period (based on the share price when it's issued).

thomst writes: Variety is reporting that uber-champion Ken Jennings will be the first of a series of guest hosts to substitute for the late, great Alex Trebek on trivia-maven game show Jeopardy! Executive Producer Mike Richards revealed that, when production resumes on November 30, Jennings will be the first of a series of guest hosts of the program, as the show begins its search for a permanent replacement for the much-beloved Trebek.

Odds are good that the "beauty pageant"-style guest host format will, in effect, be a series of auditions for the permanent position. Jennings, who is legendary for the number of games he won as a regular contestant, as well as for triumphing over fellow Tournament of Champions contestants, IBM's Deep Blue expert system, and two other "winning-est" players to be crowned Greatest of All Time, has hosted trivia game shows in the past, and has made no secret of his desire to take the Trebek's job full-time.

As the saying goes, "Stay tuned for more on this story!"

Two of China's top companies have joined forces to design, develop, and build an electric car for the express purpose of ride-hailing. The Verge reports: The vehicle is an adorable green hatchback called the D1, and it was developed by Didi Chuxing, the top ride-hailing company in China that notoriously defeated Uber in 2016, and BYD, one of the leading electric vehicle manufacturers. The D1 will have a range of 418 km (260 miles) as judged by NEDC (New European Driving Cycle). They also explained some of the more interesting design touches that make this vehicle particularly well-suited for app-based ride-hailing.

There is a medium-sized screen on the dashboard as well as two more touchscreens on the back of both headrests for passengers to access navigation and other information. There is one more smaller screen behind the steering wheel that serves as an instrument cluster. The car comes with sliding doors to prevent riders from accidentally hitting passengers or cyclists. The driver's seat is extra comfy for extended use, and there's added legroom in the back seat. The paint job is described as "avocado green," which is similar to Didi's shared bikes.

The D1 will come with a Level 2 driver assistance system that includes lane-departure warning, automatic braking, and pedestrian collision warning. There will also be a driver monitoring system to ensure that drivers keep their hands on the wheel and stay focused on the road. Didi says it used data gathered from its 550 million registered passengers and 31 million drivers to design the D1.

An anonymous reader quotes a report from Motherboard: Bay-area based startup Profitboss is pitching itself as the "easiest, fastest, and most convenient system to get back your customers from third party [services]." Free to restaurants, the service (which launched in 2018) lets restaurants open their own digital storefront. Profitboss CEO Adam Guild likes to compare his service to Shopify and the terms of agreement thread the same point: Profitboss, or "Placebull" deems itself a "virtual marketplace" that connects users to local restaurants.

The way it breaks down is this: The service is free for restaurants for pickup orders, and users are charged a $1.50 fee which Profitboss takes as a cut. For delivery orders, Profitboss sends orders to the API of apps such as DoorDash and charges restaurants a $7 fee, which works out to be cheaper than delivery apps' usual fee and can be split with the customer. The idea is that both the restaurant and the customer end up saving money in fees. Uber Eats, for example, charges users at least $5 in fees (and sometimes more) on top of the food itself being charged at a premium to cover Uber's 30 percent commission.

Profitboss isn't a panacea for all the gig economy's ills, however. While it seeks to cut gig companies out of one part of the equation and help restaurants, it also uses gig workers from Postmates and Doordash to actually deliver orders, Guild said. "In the world of e-commerce, Shopify has millions of merchants but most orders are actually fulfilled by Amazon fulfillment centers," Guild told Motherboard. "In the same sense that Amazon fulfills Shopify orders, DoorDash fulfills our orders but it's just a flat fee so there's a higher profit margin there." Guild said Profitboss can reduce the amount of time drivers spend waiting for orders while increasing their tips and overall earnings because, he claims, "customers are more willing to be generous with a gratuity and we're able to pass that entire tip to the driver."

Didi Chuxing will begin rolling out an electric vehicle developed with BYD to its drivers in coming months, aiming to reduce costs throughout the world's largest ride-hailing network. From a report: The D1, the first model to have been built with ride-hailing in mind, will ship to the startup's leasing partners across several Chinese cities, according to Didi. Made by BYD, in which Warren Buffett's Berkshire Hathaway is the largest shareholder, the vehicle has power sliding doors and a driver-assistance system. Didi flagged as early as 2018 its intention to team up with car manufacturers to produce customized EVs for its ride-hailing service. The Chinese company that defeated Uber Technologies in China is hoping the EVs present a more efficient option than traditional fuel-guzzlers. It already hosts about a million electric vehicles, which can take advantage of a growing nationwide charging network, and operates as many as 60 million rides every day.

Uber is reportedly in talks to sell its $7.25 billion self-driving car unit, Uber Advanced Technologies Group, to competing autonomous vehicle technology startup Aurora Innovation. TechCrunch reports: Aurora Innovation, the startup founded by three veterans of the autonomous vehicle industry who led programs at Google, Tesla and Uber, is in negotiations to buy Uber ATG. Terms of the deal are still unknown, but sources say the two companies have been in talks since October and it is far along in the process. The talks could falter. But if successful, they have the potential to triple Aurora's headcount and allow Uber to unload an expensive long-term play that has sustained several controversies in its short life.

Uber is rolling out a new feature this week that will let users reserve rides up to 30 days in advance and pick their favorite driver for the trip as the ride-hailing company seeks new ways to attract customers during the COVID-19 pandemic. TechCrunch reports: The new option, called Uber Reserve, which will begin to show up on the app in the next week, is designed for users who want to book a ride at least two hours in advance. Uber said it will keep its current "schedule a ride" option for those trips that fall under that two hours in advance timeline. Riders who use the Reserve feature will be shown their fare upfront and be matched to a driver ahead of the trip. The company has also folded in a "favorite driver" option. Riders can now add favorite drivers to their app. Once they select the Reserve features, riders will have the option to select one of their "favorite drivers." These favorite drivers will be offered to them first. Uber stressed that drivers aren't penalized for opting not to take the ride.

The ride-hailing company baked in two other perks, an additional 15-minute grace period if the rider is running late and an on-time guarantee that will give users $50 in Uber Cash if their driver is even a minute late to the ride they have scheduled. That Uber Cash will come directly from Uber, not the driver's earnings, the company told TechCrunch. Uber said it's added protection for the drivers as well. If a Reserve ride is canceled within an hour of the trip, the driver will receive the full fare.

"Uber helped wage a $200 million war in California to keep drivers as contractors," notes the Washington Post — successfully funding a ballot proposition that overrides a high-stakes 2019 law which insisted drivers be considered employees.

"But now that the ballot measure has passed, the company says its work isn't done..."

The ride-hailing giant's CEO said Thursday that Uber is looking to expand the model to other states, joining an executive from rival Lyft who said something similar earlier this week... "Going forward, you'll see us more loudly advocating for...laws like Prop 22," Uber CEO Dara Khosrowshahi said, adding later: "We were the first to come forward with this [independent contractor]-plus model, the idea that drivers deserve flexibility plus benefits. We want to have a dialogue with governments [in] other states..."

Uber and Lyft's stocks have rallied this week, logging percentage gains in the double digits as investors reacted to the news that they would not have to make drivers employees.
The proposition promises independent contractors 120% of the minimum wage plus contributions to healthcare equivalent to what other employers currently provide (or half that amount for employees averaging less than 25 hours a week but more than 15). But the Post points out that "Unlike full employment, however, benefits are calculated based on a driver's active time, negating the potential hours per week they spend waiting for a fare while logged onto the apps..."

Uber's chief financial officer told the Post that the new benefits "will result in probably a 5% increase to cover the incremental [costs]," including benefits, adding "We do believe that it'll be manageable."

The Post adds that labor advocates "fiercely opposed Proposition 22, saying it was a transparent attempt to snatch newly enshrined employment rights from workers."

Uber, Lyft and other app-based ride-hailing and delivery services prevailed at the ballot box in their expensive gamble to keep drivers classified as independent contractors. From a report: The titans of the so-called gig economy bankrolled the most expensive ballot measure in California history to exempt drivers from being classified as company employees eligible for benefits and job protections. The measure had more than 58% of the nearly 11 million votes counted so far. Proposition 22 pitted the gig companies, including DoorDash, Postmates and Instacart, against labor unions. More than $225 million was spent -- the vast majority by the companies.

The ballot question overrides lawmakers and the courts to keep drivers independent and able to set their own hours. If the companies' had lost, it would have upended their business model and San Francisco-based Uber and Lyft had threatened to pull out of California. The landmark state labor law known known as AB5 threatened to upend the app-based businesses, which offers flexibility to drivers to work whenever they choose. But drivers forgo protections like minimum wage, overtime, health insurance and reimbursement for expenses. Labor-friendly Democrats in the Legislature passed the law last year to expand a 2018 ruling by the California Supreme Court that limited businesses from classifying certain workers as independent contractors.

Uber, Lyft and DoorDash are spending tens of millions of dollars and flooding voters with messages in a neck-and-neck battle to preserve their current business model in California. From a report: The companies, along with other gig-economy giants like Postmates and Instacart , have contributed nearly $200 million to persuade voters to approve a ballot measure that would exempt them from a new state law requiring businesses to reclassify contract workers as employees. That amount, the most ever raised for a California ballot question, according to Ballotpedia, suggests how pivotal the vote will be for companies reliant on a labor model in which workers are summoned at the touch of an app. The opposition, which has raised far less -- roughly $19 million, largely from labor unions -- says the companies have flourished on the backs of gig workers without providing them the protections that most employees receive. Victory for Uber, Lyft, DoorDash and others would let stand the companies' business models in their home state of 40 million people. If voters reject the Proposition 22 measure, the companies would be compelled to offer their drivers broad employment benefits, such as minimum wage, paid sick leave and unemployment assistance, that would weigh heavily on their already money-losing bottom lines.

An appeals court ruled Thursday evening that an injunction issued against Uber and Lyft over the status of their drivers was an appropriate measure. CNET reports: The injunction was issued in August by Judge Ethan Schulman of the San Francisco Superior Court, who ruled that the ride-hailing companies must start classifying their drivers as employees in the state. The judge allowed the companies 10 days to appeal the ruling, which they did. The First Appellate District court in San Francisco heard arguments from the companies last week and issued its ruling Thursday siding with Schulman. The appeals court said in its 74-page ruling that there was an "overwhelming likelihood" Uber and Lyft are violating California law AB5. That law requires some employers that use independent contractors to reclassify their workers as employees and provide more worker benefits.

The injunction stems from a lawsuit against Uber and Lyft filed by the state of California in May in conjunction with the city attorneys from San Francisco, Los Angeles and San Diego. The suit says the companies "exploited hundreds of thousands of California workers" by classifying drivers as independent contractors and are violating AB5, which took effect in January. As this lawsuit works its way through the courts, Uber, Lyft and other gig economy companies have sponsored a state ballot measure campaign with nearly $200 million to bring the issue to voters. Proposition 22 aims to create an exemption for the companies to AB5 and allow them to continue classifying their workers as independent contractors. The report notes that this latest appeals court ruling "won't have an immediate effect. The court gave the companies at least a 30-day stay without requiring any changes to driver status."

Uber drivers say the company unlawfully pressured them to support a ballot initiative that would make gig workers independent contractors, according to a lawsuit filed Thursday in San Francisco Superior Court by a proposed class of California drivers. Bloomberg Law reports: The suit alleges Uber used a coercive campaign of misinformation to exert pressure on drivers to advocate and vote for the passage of Proposition 22, which would overturn a California law that makes it difficult for the gig companies to be classified as contractors. If the workers were classified as employees, they would be entitled to overtime, minimum wage and other benefits. According to the complaint Uber, Lyft and other gig economy giants invested nearly $200 million into the campaign "Yes on 22."

The drivers in the lawsuit say they were faced with a "barrage of misinformation" about the ballot initiative through pop-ups on the Uber app, which made misleading representations about driver benefits under Proposition 22 including regarding accident insurance, earnings guarantees, scheduling, and anti-discrimination protections. One such pop-up only provides the opportunity for drivers to select "Yes on Prop. 22" or "OK," to exit, which pressures drivers to accept Uber's political stance, the complaint alleges. The proposed class action claims the company is attempting to direct the political activities of its California drivers with respect to Proposition 22, and threatening their discharge to coerce them to follow a particular political course of action, in direct violation of state law.

Uber is seeking strategic alternatives for its Uber Elevate business, including strategic partnerships or a partial sale, Axios reported Friday, citing multiple sources. From the report: This reflects Uber CEO Dara Khosrowshahi's obsession with achieving profitability, as evidenced by partial sales of Uber's money-losing freight and self-driving units. Uber Elevate's goal is to develop a network of self-driving taxis, with its website suggesting a launch year of 2023.

Uber said it is working to hire 225 engineers in India, strengthening its tech team in the key overseas market months after it eliminated thousands of jobs globally. From a report: The move comes as several high-profile engineers have left Uber India in recent months to join Google and Amazon, among other tech giants. A senior engineer who recently left Uber told TechCrunch that many of his peers had lost confidence in Uber's future prospects in the country. [...] In July, news outlet The Information described Uber chief executive Dara Khosrowshahi's plan to move engineering roles to India as a cost-saving measure. The report said Khosrowshahi's plan had sparked internal debates. Thuan Pham, Uber's longtime chief technology officer, who left the company earlier this year, reportedly cautioned that hiring more engineers so quickly in India would "require accepting lower-quality candidates." Further reading: Nearly 70,000 Tech Startup Employees Have Lost Their Jobs Since March (July 2020).

California's elections include grass roots propositions that change the law directly while bypassing legislators. Uber, Lyft, and Uber-owned Postmates (as well as DoorDash and Instacart) have spent $185 million — the most ever spent — pushing a proposition that would keep ride-hail and delivery drivers as independent contractors, reports SFGate. "If it passes...gig corporations won't have to contribute to Social Security, Medicare or unemployment insurance. They won't have to offer paid sick leave, workers compensation or unemployment benefits to drivers."

But the site also investigated what happened shortly after the Uber/Lyft PAC reported an $128,000 expenditure on mailers: Political mailers masquerading as progressive voter guides and endorsing Proposition 22, the initiative backed by Uber and Lyft, are showing up in Southern California voters' mailboxes. The fine print on one mailer says it was prepared by the "Feel the Bern, Progressive Voter Guide," which is not an actual organization. Neither are the "Council of Concerned Women Voters Guide" nor the "Our Voice, Latino Voter Guide," whose mailers make the same endorsements as Feel the Bern.

Mailed political fliers typically identify the organization that paid for the literature. But that information was conspicuously absent from Feel the Bern and the other two mailers...

The measure would allow ride-hail and delivery drivers to continue to be treated as independent contractors, although with some new benefit concessions. If it fails, these employees would likely be considered workers entitled to a minimum wage, overtime pay, workers' compensation, unemployment insurance and paid sick leave.

The California Democratic Party has endorsed a "no" vote for Prop. 22.

Kurt Nelson, a software engineer at Uber, writes an op-ed at TechCrunch: I've been a software engineer at Uber for two years, and I've also been a ride-hail driver. I regularly drove for Lyft in college, and while my day job involves writing code for the Uber Android app, I still make deliveries for app-based companies on my bike to understand the state of the gig economy. These experiences have made me realize a crucial factor in the gig economy: Uber works because it's cheap and it's quick. The instant gratification when we book a ride and a car shows up only minutes later gives us a sense of control. It's the most convenient thing in the world to go to your friend's house, the grocery store or the airport at the click of a button. But it's become clear to me that this is only possible because countless drivers are spending their personal time sitting in their cars, waiting to pick up a ride, completely unpaid. Workers are subsidizing the product with their free labor.

I've decided to speak out against my employer because I know what it's like to work with no benefits. Before joining Uber, I worked a range of low-wage jobs from customer service at Disneyland to delivering pizza with no benefits. Uber is one of several large companies bankrolling California's Proposition 22. They've now contributed $47.5 million dollars to the campaign. At work, management tells us that passing Prop 22 is for the best because it is critical for the company's bottom line. Yet, a corporation's bottom line will not and should not influence my vote. Uber claims Prop 22 would be good for drivers, but that depends on Uber the company treating drivers better. [...]

As a software engineer, I have a very different experience working for Uber than drivers do. Being classified as an employee affords me benefits including healthcare, a retirement plan, stock vesting and the ability to take paid vacation and sick leave. Uber drivers are not afforded these benefits, since Uber misclassifies them as independent contractors. Since January 1 of this year, the law has been clear: Gig drivers should be classified as employees. Yet Uber refuses to obey the law and is now seeking to get Prop 22 passed so they can write a new set of rules for themselves. There's a misconception that all Uber drivers are part-time. Maybe they drive as a fun hobby in retirement or pick up a few hours after class in college, as I did. These drivers exist, but the drivers who are essential to Uber's business are full-time workers.