Uber Gets a Policy Boost With Tax-Free Tips — But Legal Shadows Remain From Its IPO

Court: N.D. California

Case: 3:19-cv-06361

Uber UBER is getting a political tailwind after President Trump signed a new law making tips tax-exempt. BofA’s Justin Post raised his price target from $97 to $115, projecting a modest 2.5% income boost for drivers — and a possible supply increase that supports Uber’s take rate.

The law lets workers deduct up to $25,000 in tips annually, potentially saving U.S. Uber drivers nearly $1B in taxes. That’s on top of booking growth and recent AV developments: Uber-backed Moove is raising $1.2B to deploy more autonomous vehicles with Waymo in Phoenix and Miami.

Meanwhile, UBER is up 59% YTD, recently breaking out above $93.60 and hovering around that range. Analysts at Wells Fargo just bumped their PT to $120.

Even as Uber gains support from policymakers, the company is still dealing with the fallout of its 2019 IPO — and some investors may be entitled to a payout from a major legal settlement.

• May 2019: Uber goes public, raising $8.1B.
• Aug 2019: Reports a $5.2B loss in Q2; UBER drops over 20%.
• Oct 2019: Investors file a lawsuit alleging deception.
• Uber allegedly used illegal expansion strategies across multiple countries and failed to disclose thousands of assaults and fatalities before the IPO.

• Uber settled for $200 million.
• If you bought UBER in 2019, you might still be eligible.
• Late claims are being accepted.
• Payouts typically take 8–12 months after court approval.

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

The chart may be bullish — but for some, the real value might be in checking if you qualify for that $200M settlement.