UBER: Lucid Robotaxis Deal Boosts Future — But $200M IPO Settlement Still Weighs

Court: N.D. California

Case: 3:19-cv-06361

Uber UBER is deepening its autonomous vehicle ambitions through a new partnership with Lucid Group and Nuro to deploy 20,000 self-driving Lucid Gravity SUVs on its platform over the next six years. While the company advances toward a driverless future, it continues to reckon with the lingering impact of a $200 million investor settlement tied to its 2019 IPO.

Key Takeaways

• Lucid Gravity Deployment: Uber will roll out at least 20,000 Lucid Gravity electric SUVs equipped with autonomous driving technology.
• Nuro Driver System: Vehicles will run Nuro’s Level 4 autonomous tech, enabling fully driverless rides in designated zones.
• $300M Investment: Uber is investing $300 million in Lucid and plans additional large-scale funding for both Lucid and Nuro.
• Optimized for AV Use: Gravity’s 450-mile range and zonal architecture make it well-suited for long-duration rideshare operations.
• AV Hardware Ready: All required hardware will be installed at the factory; software activates when vehicles are onboarded to Uber.
• Broader AV Strategy: Uber is also partnering with Waymo to launch robotaxis in cities like Austin and Atlanta.

But Uber Still Faces Fallout From a $200M IPO Settlement

Timeline Overview

• May 9, 2019: Uber goes public, raising $8.1 billion.
• August 8, 2019: Reports a $5.24 billion loss and slower-than-expected growth; stock drops over 20%.
• October 4, 2019: Investors file a lawsuit citing misleading disclosures.
• 2025: Uber agrees to pay $200 million to settle the claims.

Allegations Include

Plaintiffs alleged Uber misrepresented its business model, downplayed regulatory violations, and ignored major safety risks prior to its IPO. These included allowing unlicensed operations in international markets and failing to disclose over 5,900 sexual assaults, 107 crash fatalities, and 19 fatal assaults in the U.S. during the two years leading up to its public offering.

Investor Update

Uber’s $200 million settlement resolves claims that it misled shareholders about its growth prospects and financial stability. While the legal case has been closed, it highlights concerns about the company’s early regulatory practices and the risks tied to rapid expansion. Investors impacted during the 2019 IPO period may now be eligible for financial recovery through the class action process.

You can check more information about it and file for a payout HERE.