• YouTube star MrBeast has a new competition show that will debut Thursday on Amazon Prime Video.
• BI viewed a copy of a contestant release form and other documents for the preliminary "Beast Games" round.
• An entertainment attorney said the documents were fairly standard but expansive in their terms.

Documents obtained by Business Insider reveal the terms that contestants of MrBeast's competition show, "Beast Games," were asked to agree to during a preliminary round.

The terms prohibit contestants from disclosing information about the show, which debuts Thursday on Amazon Prime Video. Contestants who break the agreement prior to the last episode airing must pay the producer and network $500,000 for each breach. After the last episode airs, each breach would cost contestants $100,000, the documents said.

The documents also ask contestants to agree that their portrayal in the program may be "disparaging, defamatory, embarrassing, or of an otherwise unfavorable nature," and may expose them to "public ridicule, humiliation, or condemnation."

Daniel J. Ain, an entertainment attorney at RPJ Law, said the terms are largely standard for a competition show, but some — like the threat of a $500,000 charge for each breach — are particularly expansive.

"The producers use every available tool to give them ultimate flexibility to make the show and protect themselves from liability," Ain told BI, calling the documents a "contestant agreement on steroids."

"Beast Games" is a 10-episode physical competition show in which contestants compete for a $5 million prize. YouTube's top star — whose real name is Jimmy Donaldson — is the host.

The show has attracted some controversy ahead of its release. A New York Times report in August cited "over a dozen" participants who said they didn't receive enough food or medical care during the preliminary round of competition in Las Vegas.

The documents obtained by Business Insider relate to the Las Vegas taping, where over 2,000 contestants participated in physical challenges designed to see who would make the show's official production round in Toronto.

The documents include information about the show, a contestant questionnaire form, and an outline of the show's official rules and protocols. By signing the form, contestants gave full consent to the use of hidden cameras and recording devices, gave producers full discretion to edit footage, and agreed to participate for no money. Potential prizes were the only form of compensation.

A person close to the production characterized the Las Vegas production as a "promo shoot" for the show and said Amazon wasn't involved. Amazon did not respond to a request for comment from BI.

Read 24 pages of the documents below:

Note: BI omitted some pages from the document that included the contestant's personal information and a few pages with minimal or repeated information.

• Waymo One's robotaxis could threaten Uber and Lyft drivers' earnings if they get access to airports.
• Airport rides are among the most profitable trips for human drivers.
• Waymo One is offering airport trips in Phoenix and is awaiting approval in other markets.

If Waymo One's robotaxis continue expanding to airports, human ride-hailing drivers could see their incomes take a big hit.

Airport trips are "incredibly important" for ride-hailing drivers, particularly those who work near cities with major airports, said Lindsey Cameron, an assistant professor of management — whose research focuses on AI and gig work — at Wharton School of the University of Pennsylvania. She added that airport pickups can be especially profitable because those rides often have higher fares, which are driven by strong customer demand.

"Those are the most lucrative rides," she said. "You've got a captive audience who wants to go home, and so they're willing to pay."

Many Uber and Lyft drivers have told BI their gigs are already less profitable than they were a few years ago — due, in part, to an increase in competition from both human and robot drivers. The threat of robotaxis further chipping away at their business has put some of them on edge.

Nicole Moore, a part-time Lyft driver and the president of the driver advocacy group Rideshare Drivers United, said that in the last couple of weeks, she's seen a significant uptick in concern from LA-based drivers about the impacts of robotaxis on their earnings. In November, Waymo One began offering rides to anyone in Los Angeles after previously operating a limited service with a waitlist.

"You put more drivers on the street — whether they're robot drivers or people — everybody makes less money," she said, adding, "We're thankful they're not in the airport yet."

Waymo One, which is owned by Alphabet, is the only company operating autonomous vehicles at US airports, Waymo told BI. It's also the biggest autonomous taxi service in the US: In October, the company said it was providing more than 150,000 weekly paid rides in Los Angeles, San Francisco, and Phoenix. Additionally, the company announced this fall it will offer rides to the public in the Atlanta and Austin markets early next year and in Miami in 2026.

While Waymo One airport trips are available in Phoenix —and the company has approval to begin pilot testing at the Austin airport — robotaxis are still restricted from airports in Los Angeles and San Francisco. In these cities, approval for airport rides would come from groups that oversee the airports' operations.

The experts BI spoke to said it's unclear if and when robotaxis will receive widespread approval for airport trips in the markets they're operating.

Spokespeople for Los Angeles World Airports and the Airport Commission for San Francisco International Airport told BI there is no estimated timeline for when Waymo One will receive approval, but the groups are monitoring the robotaxi's progress.

The LAWA spokesperson said the airport can experience significant curbside congestion and that for driverless taxis to gain airport approval, they would need to operate safely and efficiently and not impact the airport's current commercial and private vehicle operations. The Airport Commission spokesperson said driverless taxis would need to demonstrate the ability to operate on freeways and in communities near the airport and ensure they could safely meet the needs of customers.

Waymo is pushing for airport expansion in the US

Waymo told BI that it's providing thousands of trips each week to and from Phoenix Sky Harbor International Airport, the most popular destination for its riders in the city. The company also said it's in active discussions with San Francisco International Airport and Los Angeles International Airport about expanding its fleet to these airports, but didn't give BI a timeline for when it expects to receive approvals.

The company added that it was granted approval to provide robotaxi trips on freeways in San Francisco, Los Angeles, Phoenix, and Austin, but that it hasn't begun offering those rides to the public yet: Access to these trips is currently limited to Waymo's employees in San Francisco and Phoenix.

A spokesperson for Austin-Bergstrom International Airport told BI that the airport would monitor Waymo One's pilot testing before deciding whether to approve airport pickups.

Uber did not respond to Business Insider's request for comment, and Lyft said that its drivers have generally earned more on airport trips than on non-airport trips.

It's not just drivers who are feeling the pinch from Waymo One's expansions. GM announced on December 11 that it was retreating from the robotaxi business "given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market."

Meanwhile, on December 5, shares of Uber and Lyft traded lower after Waymo announced it was expanding to Miami.

To be sure, Waymo isn't the only company rolling out robotaxis: Tesla and the Amazon-owned Zoox are also developing their own versions of a robotaxi.

Airport trips are some drivers' 'bread and butter'

Moore said that airport trips aren't as profitable for drivers as they used to be, but that they remain important.

"They have been our bread and butter for many, many years," she said.

Jason D., a 50-year-old driver in Phoenix, told BI he does more airport trips than any other type of ride — in part because he drives an Uber XL vehicle that has the space for luggage and multiple passengers. He said competing with Waymo One at airports and elsewhere has hurt his earnings.

"Driverless taxis are flooding an already competitive Phoenix market and taking money from human drivers," Jason D, who drives full-time for Uber and asked that his last name not be included for fear of professional repercussions, previously told BI. He added that Waymo One's cars also contribute to significant congestion at the airport because they don't know how to follow traffic officers' hand and voice commands.

Sergio Avedian, a part-time Uber and Lyft driver based in the Los Angeles area and senior contributor to the gig-driver-advocacy blog and YouTube channel The Rideshare Guy, told BI that airport drop-offs tend to be quick, pay relatively well, and often come with a tip.

In comparison, doing airport pickups can require drivers at major airports to wait in designated lots until a passenger books a ride. Avedian said this process can be frustrating, but that airport pickups often pay better than drop-offs because the fares are higher — which is why some drivers think they're worth the wait.

"You have a chance of maybe catching a 'unicorn,'" he said, referring to the highest-paying trips. He added that many airport riders are business travelers who can expense their trips and are therefore less likely to balk at a high fare or not tip.

While robotaxis are already operating in the LA market, Avedian isn't overly concerned about robotaxis impact on drivers' earnings in the short term. But he knows the clock is ticking.

"Long-term, definitely it's going to be a threat, and that's why we suggest everybody not treat Uber and Lyft driving as a career," he previously told BI.

If more airports approve robotaxis, Moore said she hopes riders will value the customer service humans provide.

"Customers often expect you to put their luggage in the trunk — is the robotaxi going to do that?"

We want to hear from you. Do you work in the gig economy? Please fill out this form.

Correction: December 13, 2024 — An earlier version of this story misstated the number of weekly paid rides Waymo provided. It was more than 150,000, not 100,000.

Ride-hail giant Uber and Chinese autonomous vehicle technology company WeRide have launched a commercial robotaxi service in Abu Dhabi. The launch marks Uber’s first international autonomous vehicle offering.  Uber has been snatching up partnerships with autonomous vehicle companies across sectors, including ride-hail, delivery, and trucking. Other partners include Wayve, Serve Robotics, Aurora Innovation, Waabi, and […]

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Uber has 30 days to require certain drivers to get fingerprinted if the ride-hail giant intends to continue transporting unaccompanied teens in California.  The California Public Utilities Commission (CPUC) issued a ruling Thursday that requires taxi and ride-hail drivers who are carrying unaccompanied minors in the state to pass a fingerprint background check. The ruling […]

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Waymo is partnering with Moove, an African mobility fintech that offers vehicle financing to gig workers, to handle fleet management operations for its robotaxi service in Phoenix and, soon, Miami.  The partnership marks several firsts. It will signal Waymo’s entry into Miami. And it’s also the first time Moove will enter the U.S. market and […]

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• Caspar Lee is an ex-YouTuber turned entrepreneur and venture capital fund owner.
• He shared his tactics for staying fit while running his own businesses and traveling often.
• These include using AI tools, walking as much as possible, and combining exercise with socializing.

Caspar Lee may no longer be a YouTuber, but he's still involved in the influencer world behind the scenes.

Lee, 30, is based in London and co-founded three companies: the marketing agency Influencer, the talent management company MVE, and the venture capital fund Creator Ventures.

With so many projects on the go, his schedule looks very different from week to week, and it can be hard to maintain a consistent fitness routine.

"I don't need to be able to run for over two hours, but I don't want to struggle if I go for a run," he told Business Insider as part of his campaign to promote Google's AI, Gemini Live. "I also do it for the mental health benefits, to be able to enjoy life, and I want to have some sort of muscle because it will be great as I get older."

Lee shared how he keeps fit to achieve these goals while running his own businesses.

Different types of exercise

Lee builds a few different types of exercise into his schedule. When he's traveling, he goes to the gym or goes on runs because it helps him manage jetlag and anxiety.

"If I'm struggling to stay awake, I'll go to the gym. Or if the next morning I'm struggling to wake up, I'll go for a run," he said. "I get a little bit anxious when I travel, and the endorphins help."

When he's not traveling, he likes to exercise at home after he gets back from work. He particularly enjoys the 20-minute workout videos by Joe Wicks on YouTube.

While he's at work, he tries to offset long periods of sitting down by doing stretches and building walking into his day.

"If I need to grab some food, I'll walk to fetch it. And instead of jumping on the Tube to get to a meeting 20 minutes away, I'll try to walk. I even try to take calls while walking. I just think walking is one of the best forms of exercise you can do and it's really underrated, so I do as much of it as I can," he said.

Making exercise social

"I'm not just someone who hangs out at the pub drinking pints. I'd rather be doing something fun," Lee said. "I love exercising with my friends."

His favorite workouts to do with friends are runs and playing golf

"I love to play golf. It's a nice 4-hour walk," he said. "And it's such a great way to make new friends and to spend time quality time with existing friends. Most weekends when I'm in England, I'll try to play golf one of the days."

He structures his workouts around playing golf, too, doing strength training early in the week and cardio later in the week so that his muscles aren't stiff for weekend golf rounds.

Lee also works out with his fiancée, the influencer Ambar Driscoll, "quite a lot," doing bodyweight exercises and walking.

AI-driven workouts

Because of all the traveling Lee does, he struggles to keep to a strict workout schedule or work with a personal trainer consistently. He said the Gemini AI structures and plans his workouts for the week.

He spends 45 minutes in the gym, doing three sets of six exercises for a particular muscle group, which he lets the AI decide.

"Yesterday I was using Gemini Live to help me because I wanted to do a fun push-up routine. It just came up with a bunch of things I could do," he said. "I probably don't put exercises together correctly, which is why I then ask Gemini 'What am I doing wrong?' and it helps."

Simple diet rules

"Generally my rules are: eat as little sugar as possible, drink as much water as possible, and get in protein," he said. "But I do love a dessert, so when I want to have sugar — like a tiramisu — I'll have it."

He makes a lot of chopped salads, he said, including tomatoes, carrots, cucumbers, mangoes, dates, and walnuts.

"I'll ask Gemini Live for help with food as well. I'll say 'Look, I just came back from traveling. I'm tired. I'm jetlagged. Can you help me come up with something that's going to help with that?' And it has the most incredible recipes," he said.

• Amazon has faced repeated delays in launching a new AI-powered Alexa.
• Integration with partners like Uber and Ticketmaster has complicated troubleshooting processes.
• Latency and compatibility issues have also caused delays.

Amazon's Alexa seems like the perfect product for the generative AI era.

Getting this powerful technology to actually work well with the digital assistant is a monumental challenge that's been plagued by gnarly technical problems and repeated delays.

Customer-friction concerns, partnership hiccups, compatibility questions, latency problems, and accuracy issues have snarled progress, according to internal Amazon documents and multiple people involved in the project.

The Alexa team is under immense pressure to get something out. A decade ago it launched with Echo speakers and became a household name. But that early success fizzled and the business has so far failed to become profitable, leading to drastic cutbacks and layoffs in recent years.

Some company insiders consider this AI moment to be a seismic opportunity for Alexa, and potentially the last chance to reignite consumer interest in the voice assistant through the power of large language models.

A product of this scale is "unprecedented, and takes time," an Amazon spokesperson told Business Insider. "It's not as simple as overlaying an LLM onto the Alexa service."

"RED" warning

One of the main challenges facing the new Alexa relates to how the digital assistant will interact with other companies and services, and who is responsible for customers if their requests, orders, and payments don't go smoothly.

In late August, Amazon was working on integrating 8 third-party applications, including Uber and Ticketmaster, into the upcoming AI-powered Alexa to handle various user inquiries.

At that time, the goal was to launch the new Alexa around mid-October, according to one of the internal documents obtained by Business Insider. However, it was still unclear which companies would be responsible for customer support issues, like payment and delivery errors, this document stated.

The lack of clarity could cause Amazon to send "frequent" customer contacts to the partner companies. Then, those partners would sometimes redirect the users back to Amazon, the document explained.

"This level of support would cause significant customer friction, when some of the orders/purchases are time-sensitive (meal orders or rideshare trips) and purchase mistakes can be expensive (e.g. buy Taylor Swift tickets)," the document said, assigning it a "RED" warning.

Release dates pushed back

Snafus like this have caused Amazon to push back the release date, almost on a weekly basis, according to some of the people involved in the project, which has been codenamed "Banyan" or "Remarkable Alexa." BI's sources asked not to be identified because they're not authorized to talk to the press.

For example, without more clearly defined responsibilities with third-party partners, Amazon expected further delays in the launch. "Alignment on customer support plans between Product teams and the 3P partners may push this timeline further out if any delays occur," one of the documents warned.

The company had once planned for a June launch, but after repeated delays, it told employees late last month that the new Alexa would launch "no earlier" than November 20, one of the documents said.

A few of people BI spoke with recently are even talking about the Alexa upgrade rolling out in early 2025, which would miss the key holiday period. Bloomberg earlier reported on a 2025 launch plan.

As of late October, Amazon had not settled on an official brand for the updated voice assistant, and instructed employees to simply call it the "new Alexa" until further notice, one of the documents said.

Alexa's huge potential

To be sure, Alexa has significant long-term potential in the generative AI era — as long as Amazon can iron out problems relatively quickly.

Time is of the essence, partly because the existing Alexa business has lost momentum in recent years. According to a recent report from eMarketer, user growth for major voice assistants, including Alexa, has declined significantly in recent years.

The sudden rise of ChatGPT has showcased what is possible when powerful AI models are integrated smoothly with popular products that consumers and companies find useful.

Some Amazon leaders are bullish about the AI-powered Alexa and a new paid subscription service that could come with it. At least one internal estimate projected a 20% conversion rate for the paid subscription, one of the people said. That would mean that out of every 100 existing Alexa users, roughy 20 would pay for the upgraded offering. Amazon doesn't publicly disclose the number of active Alexa users but has said it has sold more than 500 million Alexa-enabled devices.

An internal description of the new Alexa shows Amazon's grand ambitions: "A personalized digital assistant that can handle a wide range of tasks, including drafting and managing personal communications, managing calendars, making reservations, placing orders, shopping, scouting for deals and events, recommending media, managing smart home devices, and answering questions on virtually any topic," one of the documents said.

Customers will be able to access the new Alexa "through natural language using voice, text, email, shared photos, and more across all their devices like Echo, Fire TV, mobile phones, and web browsers," it added.

Amazon CEO Andy Jassy shared a similar vision during last month's earnings call, saying the new Alexa will be good at not just answering questions, but also "taking actions."

In an email to BI, Amazon's spokesperson said the company's vision for Alexa is to build the world's "best personal assistant."

"Generative AI offers a huge opportunity to make Alexa even better for our customers, and we are working hard to enable even more proactive and capable assistance on the over half a billion Alexa-enabled devices already in homes around the world. We are excited about what we're building and look forward to delivering it for our customers," the spokesperson said.

Smaller AI models

Still, the project has grappled with several challenges, beyond customer friction and partnership problems.

Latency has been a particularly tough problem for the AI Alexa service. In some tests, the new Alexa took about 40 seconds to respond to a simple user inquiry, according to three people familiar with the test results. In contrast, a Google Search query takes milliseconds to respond.

To speed up, Amazon considered using a smaller AI model, like Anthropic's Claude Haiku, to power the new Alexa, one of the people said. But that dropped the quality and accuracy of the answers, leaving Amazon in limbo, this person said. In general, smaller language models generate quicker responses than larger models but can be less accurate.

Amazon had initially hoped to use a homegrown AI model, one of the people said. Last year, Alexa head scientist Rohit Prasad left the team to create a new Artificial General Intelligence group at Amazon. The stated goal of the new team was to create Amazon's "most expansive" and "most ambitious" large language models.

However, this AGI team has not produced notable results so far, which led Amazon to consider Anthropic's main Claude offering as the primary AI model for the new Alexa, this person said. Reuters previously reported that Amazon was going to mainly power Alexa with Claude.

Amazon's spokesperson said Alexa uses Amazon Web Services's Bedrock, an AI tool that gives access to multiple language models.

"When it comes to machine learning models, we start with those built by Amazon, but we have used, and will continue to use, a variety of different models — including Titan and future Amazon models, as well as those from partners — to build the best experience for customers," the spokesperson said.

The spokesperson also added a note of caution by highlighting the difficulties of successfully integrating large language models with consumer applications. These models are great for conversational dialogue and content creation, but they can also be "non-deterministic and can hallucinate," the spokesperson added.

Getting these models "to reliably act on requests (rather than simply respond) means it has to be able to call real-world APIs reliably and at scale to meet customer expectations, not just in select instances," the spokesperson explained.

New risks

In late August, Amazon discovered several new risk factors for the AI Alexa service.

Only 308 of more than 100,000 existing Alexa "skills," or voice-controlled applications, were compatible with the new Alexa, presenting a "high risk for customers to be frustrated," one of the documents explained.

Some older Echo devices would not be able to support the AI-powered Alexa, the document also warned. And there were no plans for expanding the new service to dozens of overseas markets where Alexa is currently available, leaving a large user base out of touch, it also noted. Fortune previously reported some of these risk factors.

Integration headaches

As of late August, Amazon had 8 "confirmed" partner companies to handle certain tasks for the new Alexa, as BI previously reported. The company hopes to onboard roughly 200 partners by the third year of the new Alexa's launch, one of the documents said.

Integrating with some of these companies has already created headaches. One document said that Amazon struggled to develop a consistent troubleshooting process across every partner service. Companies including Uber, Ticketmaster, and OpenTable have deprecated their existing Alexa skills, further disconnecting them from the voice assistant.

Amazon's spokesperson said that, as with any product development process, a lot of ideas are discussed and debated, but "they don't necessarily reflect what the experience will be when we roll it out for our customers."

Amazon has also anticipated customer complaints, at least in the early launch phase. One internal document from late August stated that the new Alexa was projected to receive 176,000 customer contacts in the first three months of its release. At one point, Amazon considered launching a new automated troubleshooting service for issues related to its devices and digital services, including Alexa, according to one of the internal documents. That was later shelved.

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• Uber and Lyft drivers in Phoenix and LA said that driverless taxis are hurting their earnings.
• They said Waymo One robotaxis are making their gigs even more competitive.
• Regulatory hurdles and safety concerns could slow the growth of the robotaxi industry.

Some Uber and Lyft drivers said the driverless taxis operating in their markets are driving down their earnings.

Jason D, a 50-year-old Uber driver based in Phoenix, told Business Insider it's become harder to make money in recent years due to increased competition with human drivers, lower fares, fewer tips from riders, and higher operating costs. Now, he said the rollout of Waymo One robotaxis has made this problem even worse.

"Driverless taxis are flooding an already competitive Phoenix market and taking money from human drivers," said Jason, who drives full-time and asked that his last name not be included for fear of professional repercussions.

Several companies are competing for a share of the US robotaxi market. However, Waymo One, Alphabet's autonomous taxi service, announced in August that it was providing more than 100,000 paid rides weekly in Los Angeles, San Francisco, and Phoenix. Waymo One also plans to expand to Atlanta and Austin early next year and will be facilitated through the Uber app. While the robotaxi industry could be slowed by regulatory hurdles and safety concerns, ride-hailing experts previously told BI that growing adoption would likely hurt Uber and Lyft drivers' earnings in the years to come. Some drivers told BI this is already happening.

To be sure, it's unclear how much robotaxis like Waymo One's are currently impacting drivers' earnings. Carl Benedikt Frey, a professor of AI and work at the Oxford Internet Institute, previously told BI there's little evidence that robotaxis like Waymo One have had a significant impact on Uber and Lyft drivers' earnings so far. But as more robotaxis hit the road, and fare prices come down, he said he would expect drivers' income to take a hit.

"As the technology gets better and cheaper, drivers will feel it in their wallets," Frey said. "We've seen this movie before: When Uber first showed up, it reduced traditional taxi drivers' earnings by about 10%."

Waymo and Uber did not respond to BI's request for comment. In February, an Uber spokesperson told BI that the company hadn't seen any significant impacts on drivers' earnings in Phoenix and Las Vegas, the two cities where Uber had autonomous vehicle partnerships at the time.

A Lyft spokesperson did not respond to BI's question about the impacts driverless taxis could have on ride-hailing drivers but said the company's goal is to build a hybrid network of human drivers and autonomous vehicles. Additionally, Lyft partnered with Mobileye to roll out autonomous vehicles on the Lyft network.

Restrictions on robotaxis could help reduce competition

John, a 43-year-old Uber and Lyft driver based in Phoenix, said he said he thinks Waymo One's robotaxis have hurt his earnings. He sometimes asks his passengers about their experiences using driverless taxis to get a better understanding of his competition.

He said Waymo One autonomous vehicles compete with him for rides and are sometimes cheaper than Uber and Lyft trips, which he thinks could deter passengers from using traditional ride-hailing services. John's identity is known to BI but has been withheld for his fear of professional repercussions.

Comparing the costs of Waymo One against Uber or Lyft is difficult because prices vary by market, length of trip, promotional offers the passenger may have, and whether the client tips a human driver.

There is some relief for human drivers: Restrictions on where robotaxis can drive could help limit the impact on ride-hailing drivers.

Brad, a full-time Uber driver based in Los Angeles, said he doesn't feel too threatened by Waymo One robotaxis in the city because they primarily offer shorter rides that he doesn't consider to be very profitable.

"I stopped picking up local rides a long time ago," said Brad, whose identity is known to BI but has been withheld for his fear of professional repercussions.

He added the most profitable rides tend to be airport trips — specifically when he picks up passengers from their terminals — and robotaxis aren't allowed at the airport. Waymo One airport trips are still restricted in Los Angeles and San Francisco but are available in Phoenix.

Nicole Moore, a part-time Lyft driver and the president of the driver advocacy group Rideshare Drivers United, previously told BI that trips to and from airports are many drivers' "bread and butter." She said that competition from robotaxis for these rides would be a concerning development for drivers.

A key factor in the success of robotaxis could be whether riders feel comfortable without a human driver. In Phoenix, Jason said that robotaxis are sometimes a "hazard on the road."

"They often cut me off," he said. "I have seen them signal left and right before making a sudden turn across multiple lanes of traffic."

In June, Waymo One recalled 672 of its driverless taxis after one hit a utility pole in Phoenix — the company said there were no passengers in the vehicle.

Jason said some riders he speaks with are comfortable with driverless cars or even think they could be safer than those driven by humans. But he's firm in his stance.

"I am fundamentally opposed to driverless rideshare because I do believe my income is being impacted," he said.

We want to hear from you. Do you work in the gig economy? Please fill out this form.

The Federal Trade Commission is investigating Uber over whether it broke consumer protection laws by allegedly automatically signing people up for its Uber One subscription service and making it hard to cancel, according to Bloomberg News. The investigation was opened earlier this year after the FTC received customer complaints. Uber told Bloomberg that its cancellation […]

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Uber is expanding its fleet of gig workers and creating a new category: AI annotation and data labeling. The ride-hailing company has started hiring contractors for a new AI and data labeling division called Scaled Solutions. These workers complete projects for Uber’s internal business units but are also serving outside customers including self-driving vehicle company […]

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• Some Uber and Lyft drivers are starting businesses driving people they've met through the apps.
• It's more profitable and offers better autonomy, four drivers told Business Insider.
• Uber and Lyft drivers can make as little as $3 a ride, pushing some to look for alternatives.

Brian started driving for Uber in California in 2013. At the time, it paid enough to be his full-time job.

Since then, working for the ride-hailing app has become less profitable, he said. But Uber and its rival Lyft still play an important role in his work — to recruit customers for his black-car service.

"I get a lot of people that I pick up randomly on Uber asking me, 'Hey, do you do private rides?'" Brian said in an interview with Business Insider. "And I say, 'Yes,' and I give them my business card, and if they want to book me, I'm happy to give them a price quote."

Brian is one of four drivers who told BI about starting his own business offering rides outside Uber and Lyft. He and the other drivers interviewed for this story asked that BI not use their full names for fear of being deactivated by Uber and Lyft. BI has verified their identity and work for the apps.

All four have had a similar experience: Driving exclusively for Uber and Lyft used to pay well, they said. But over the past few years, ride-hailing drivers' earnings have fallen to as little as $3 a ride. They say their businesses offer customers more reliable, higher-quality rides than they can often find on the apps — and sometimes, for less money.

Drivers pitch Uber and Lyft customers

About half of Brian's trips come from his list of private clients, he told BI. The other rides he still finds on Uber and Lyft, mostly to fill in what some drivers call "dead miles" — distances driven to get to or from a ride, which the apps don't compensate drivers for.

A trip for a private client could involve picking someone up at 3:30 a.m. to go to the airport or driving to and from a baseball game on the weekend. Those trips tend to make him more money than similar routes on the apps, he said, since Uber and Lyft aren't taking a share of the fare.

Unlike his experience with the apps, he's gotten to know many of the people he drives for, which he said helps generate repeat business and get him new customers.

"I won't advertise, but someone will post me on the Nextdoor app like, 'Hey, this driver is good, reliable — his prices are reasonable.'"

When BI asked whether drivers can pitch their own businesses while on a trip for Uber, an Uber spokesperson said the app's drivers are independent contractors. The spokesperson also referenced company statistics that Uber drivers make more than $30 an hour "while active on the app."

A Lyft spokesperson referenced the company's terms of service, which state that drivers can have other employment "including but not limited to providing services similar to the Rideshare Services to other companies."

Making money on Uber and Lyft is harder, some say

Torsten Kunert, a ride-hailing driver and YouTuber who makes videos about the industry, said he's noticed more drivers trying to develop their own businesses over the past year and a half. He offers an online course for drivers looking to make the change, with advice ranging from pitching Uber and Lyft riders on their services to navigating commercial insurance.

Riders are often looking for a better deal. Kunert said that he often prices his rides for private clients below the going rate for a similar trip on Uber. Prices for various app-based services, such as Uber and Airbnb, have increased over the past few years as the so-called millennial lifestyle subsidy has dwindled.

"The rider and the driver are pretty much experiencing the same story, really," he said.

Offering private rides has its costs, Kunert said. Drivers have to buy their own commercial insurance and develop their list of clients. Many drivers who start their own businesses also drive high-end vehicles, such as luxury sedans and SUVs, which can involve a higher monthly auto loan or lease payment, he said.

The drivers BI spoke with said the switch was worth it.

Phil, an Uber driver in Ontario, Canada, told BI he offers rides around his town for 10 Canadian dollars regardless of distance. He still occasionally works for Uber, picking up similar rides for 3 or 4 Canadian dollars just to pitch riders on his private service. "The pay is so poor," he said.

One driver in San Diego who runs his own black-car service told BI that he drives a Cadillac Escalade and mostly serves business clients who pay him more than he would make on Uber's black-car service.

It's more work than just picking up trips through Uber or Lyft. The driver said he spends more time cleaning his car and texting clients to set up rides than when he relied on the apps for work.

But he said his earning potential has gone up. Some clients pay him $100 an hour to wait outside business meetings just so they can have a car ready to leave as soon as they're finished, he said.

Many drivers for the apps are "just saying 'this is not worth it anymore,' or they're becoming independent contractors on their own," he said.

Kunert said many drivers he advises enjoy not having to worry about Uber or Lyft deactivating their accounts or figuring out whether the pay the apps offer for a trip will make them any money.

"You truly, for the first time, you step into your self-worth, and you become a true independent contractor," he said.

Do you work for a ride-hailing or gig delivery service and have a story idea to share? Reach out to this reporter at [email protected].

• CEOs at top companies have gone to the shop floor to learn more about their businesses.
• Laxman Narasimhan did time as a barista while running Starbucks, and Airbnb CEO Brian Chesky was a host.
• Here's what they learned from going undercover.

When Kelly Ortberg became Boeing CEO in October, he issued a rallying cry for company leaders: Get back on the factory floor.

He's not the only leader who thinks bosses are too far from the coal face.

Some executives have said those who regularly spend time on the shop floor have a greater understanding of their business and what pain points need fixing.

These CEOs have all gone undercover to either discreetly serve customers or experience service themselves. This is what they learned from it about their businesses.

Dara Khosrowshahi, CEO of Uber, drove and delivered for Uber Eats in 2022

Uber CEO Dara Khosrowshahi spent time picking up shifts as an Uber Eats delivery driver on an e-bike and an Uber driver for a spell in 2022.

He bought a secondhand Tesla Model Y to ferry riders around San Francisco and made deliveries using the alias "Dave K." He did this when the company was struggling with recruitment.

Khosrowshahi told The Wall Street Journal in April 2023 he was surprised how passengers would often discuss personal or sensitive information as if he wasn't there. While making deliveries on an e-bike, he encountered "tip-baiting," where customers offer a big tip but reduce it on delivery.

The experience showed him that the company culture was focused on customers and not drivers. "We didn't take pride in the driver product because very few of us drove," he said.

Khosrowshahi shared his findings at a companywide all-hands titled "Why we suck."

He said the meeting wasn't "pleasant" but that it led to a shift, telling the Journal, "We started celebrating employees going out there delivering, employees driving. It is a point of pride for employees now — when they drive they get a little badge on their corporate profile."

Laxman Narasimhan, former CEO of Starbucks, picked up a half-day barista shift once a month

Laxman Narasimhan said he spent six months immersing himself in all aspects of the company, including training as a barista, before taking over from Howard Schultz as Starbucks CEO.

When he took over the job, Narasimhan said he planned to continue working monthly half-day shifts.

In his first annual letter to staff in March 2023, Narasimhan said he wanted the practice to help "keep us close to the culture and our customers, as well as to our challenges and opportunities."

"I expect each member of the leadership team to also ensure our support centers stay connected and engaged in the realities of our stores for discussion and improvement," he added.

During his barista shifts, he burned his hand on a sandwich and had an egg bite explode in front of a customer. This prompted him to make several key changes, including sending more breakfast sandwiches to stores to avoid shortages, making packaging for egg bites easier to open, and sending fewer corporate emails to stores.

Brian Chesky, CEO of Airbnb, spent 6 months living in Airbnbs — and became a host

In 2022, Brian Chesky said he spent six months living full-time as a guest in a series of Airbnbs to promote remote work.

The Airbnb CEO last year told Fortune the experience varied greatly from place to place: some hosts would request he pay "giant" cleaning fees, and others handed him a chore list.

"I started noticing variability," he said. "I'd ask them, 'Why are you doing all of this?'"

After Chesky's Airbnb stays, he launched 50 features, Fortune reported, including Airbnb Rooms — individual rooms to rent instead of whole homes.

To promote these listings, Chesky put a guest room in his own San Francisco home on the app for free, from 2022 to March 2023. While the listing is no longer accepting guests, some of those who did get the opportunity in 2023 left glowing reviews.

"I feel like I'm reviewing Steve Jobs' personal iPhone," one guest wrote in a review praising Chesky for facilitating "a smooth check-in."

Tony Xu, CEO of DoorDash, makes monthly food deliveries

DoorDash CEO Tony Xu makes monthly deliveries as part of WeDash, a program begun in 2015 that requires salaried employees to carry out several deliveries a year.

Xu told "The Rideshare Guy" podcast last year that it had sparked ideas for improvement. He said the company had a Slack channel dedicated to issues people identify from WeDash, such as app bugs or getting the wait times for deliveries wrong.

Xu also said it helped him and his employees solve problems, in an interview on Stanford Graduate School of Business's "View From The Top" podcast in 2021.

"If you're at the surface level, you're never going to actually realize what the problems are," he said.

On the podcast, he also shared that he does customer service for the company daily, which he said can sometimes shed more light on areas for improvement than data.

"Sometimes, it's really hard just looking at the data to get to the digging," he said.

During a ride covered by The Associated Press, the company's CTO and Xu's cofounder, Andy Fang got lost during one WeDash delivery after the app prompted him to go to the wrong address.

Joey Wat, CEO of Yum China, says she spends 'hours' watching customers eat

Yum China CEO Joey Wat said that she covertly hangs out at its restaurants, including KFC and Pizza Hut to watch customers eat, sometimes for up to three hours.

These stakeouts have been helpful in coming up with product ideas, Wat told the 2024 Fortune Global Forum this month. "Some things you can observe directly from the customer and sometimes talking to the store manager helps," she said.

Wat added that she noticed many young people in China ate KFC fried chicken dipped into mashed potato.

"What we can do with that insight is get rid of the bone," Wat said, adding this was the impetus for the company launching the boneless "mash potato burger" in China.

• Just in time for the busy holiday travel season, Uber has come out with a new ride option.
• For those who don't travel light, the UberXXL option comes with "larger trunk space" for more luggage.
• It's available for rides to and from 60 airports worldwide.

For those who don't like to travel light during the holiday season, Uber's new XXL option might be for you.

The ride-hailing company's new ride category comes with "access to larger trunk space," it announced Wednesday.

It's worth noting the UberXXL option is only for trips to and from airports. It's available for more than 60 airports worldwide, including 40 in the US and Canada.

So what's the difference between this and an UberXL, which has been around for years? It boils down to trunk space.

The UberXL option gets riders a van or SUV that seats up to six people. While the new UberXXL choice guarantees trunk space and fits six people, the UberXL option doesn't promise the trunk will be free to load your luggage into.

As part of its updates for the holiday travel season, Uber said eligible Uber One members could get $20 Uber Cash back on an XXL ride until December 1.

Separately, Uber is introducing a widget for iPhone users that lets them book a ride from their home screens with two taps. The widget requires the latest version of iOS and the latest Uber app update.

The Transportation Security Administration expects this year's Thanksgiving travel period to be the busiest on record, in line with passenger volumes already reaching record highs earlier this year. It projects it'll screen 18.3 million people from Tuesday to December 2, an increase of 6% from this time last year.