Business
Uber will add driverless Cruise vehicles to its fleet in 2025
![Uber will add driverless Cruise vehicles to its fleet in 2025 Uber will add driverless Cruise vehicles to its fleet in 2025](https://ca-times.brightspotcdn.com/dims4/default/100a4c1/2147483647/strip/true/crop/3556x1867+0+252/resize/1200x630!/quality/75/?url=https%3A%2F%2Fcalifornia-times-brightspot.s3.amazonaws.com%2Fca%2F96%2Fe104d3e5401ea9198b3089d6d7b1%2Fcruise-robotaxis-09649.jpg)
After losing its California operating license last year over safety concerns, the autonomous vehicle company Cruise will soon partner with Uber to offer driverless transportation through the popular ride-hail app.
Cruise and Uber announced a multiyear partnership that will begin in 2025 and allow Uber customers to select a driverless Cruise vehicle for qualified trips. The partnership will begin in a single, unspecified city and will rely on Chevy Bolt-based autonomous vehicles.
Cruise grounded its entire fleet in October after California regulators revoked the company’s license to provide driverless rides, alleging that the company mishandled a safety incident in which a pedestrian was struck and dragged by a Cruise vehicle in San Francisco.
The pedestrian, who was in the street after being struck by a car with a driver, was pinned under a Cruise vehicle and sent to the hospital with injuries. In 2018, a self-driving car from Uber hit and killed a pedestrian in Arizona, causing the company to halt its driverless program in several cities.
Driverless Cruise vehicles remain banned in California, but autonomous cars operated by the Google spinoff Waymo are serving customers in San Francisco. Waymo is expanding into cities around the Bay Area and Southern California, the Associated Press reported, and announced that its robotaxis are completing more than 100,000 paid rides per week. Both Cruise and Uber are based in San Francisco.
Cruise, founded in 2013 and owned by General Motors, is providing trips with a driver behind the wheel in Phoenix, Houston and Dallas. The Uber partnership probably will be launched in one of those cities, the company said, and will rely on autonomous vehicles with no driver.
“Cruise is on a mission to leverage driverless technology to create safer streets and redefine urban life,” Cruise Chief Executive Marc Whitten said in a statement announcing the partnership. “We are excited to partner with Uber to bring the benefits of safe, reliable, autonomous driving to even more people.”
Whitten began leading the company after founder and CEO Kyle Vogt stepped down after the California license suspension. The partnership with Uber is the company’s latest move under Whitten to regain public trust and establish a reliable revenue stream.
GM has not made any money off Cruise, instead seeing $5.8 billion in losses on the robotaxi service from 2021 to 2023, according to the AP. The automaker had an operating loss of $900 million on Cruise in the first half of this year.
Despite financial woes and safety missteps, Uber Chief Executive Dara Khosrowshahi said his company is excited about the partnership.
“We believe Uber can play an important role in helping to safely and reliably introduce autonomous technology to consumers and cities around the world,” Khosrowshahi said in a statement.
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Business
With strike behind them, Los Angeles hotels look to move on
![With strike behind them, Los Angeles hotels look to move on With strike behind them, Los Angeles hotels look to move on](https://ca-times.brightspotcdn.com/dims4/default/4963d4f/2147483647/strip/true/crop/3000x1575+0+213/resize/1200x630!/quality/75/?url=https%3A%2F%2Fcalifornia-times-brightspot.s3.amazonaws.com%2F20%2Fe9%2F6f27df2d444490486ab651d6e6e8%2Fcalifornia-hotel-strike-68855.jpg)
On a spring day last year, representatives from dozens of Los Angeles-area hotels gathered for a meeting with the union representing their cleaners, front desk clerks and other workers.
The workers’ contracts with the hotels had expired and leaders from Unite Here Local 11 laid out a stark proposal for new agreements, which included an immediate $5 an hour raise for its members.
It was a nonstarter for the hotel owners and operators — so much so they refused to send their negotiators to the next bargaining session. Weeks of tense negotiations followed and when talks broke down, Unite Here launched a strike thought to be the largest ever to hit the U.S. hotel industry.
The strike’s intermittent work stoppages, which had staff at more than 60 hotels walking off the job, would go on for more than a year. Workers in red shirts sporting drums and horns became a fixture outside of Los Angeles hotels. Picket lines were tumultuous at times and the disruption riled hotel guests, who lashed out at workers.
But now calm has returned. All but a few of the hotels involved in the strike have agreed to new contracts, conceding on the wage increases that had kicked off the strike as well as other demands made by Unite Here. In all, workers are set to receive a total hourly boost of $10 over the course of the four-year contracts.
While the labor unrest roiled a keystone of Southern California’s tourism industry and the new contracts have added to the hotels’ labor costs, hospitality experts said the strike isn’t expected to have a lasting impact on the region’s hotel industry. Hotels have emerged largely unscathed as demand for rooms in the region is healthy and revenue for the hotels climb.
“Right now people have been traveling and I would say hotels are doing well,” said Ed Fuller, a hotel and lodging industry veteran who previously served as Marriott International’s president and now runs an Irvine-based consulting group.
With the strike out of the way, Fuller said the hotel and broader tourism industry should be focused on boosting the number of international tourists back to pre-pandemic levels and “having the commitment that Los Angeles — and Orange County, and San Francisco and the whole state — is selling at all times.”
Upscale hotels in thriving coastal markets, which typically have unionized workforces, are doing relatively well, said Ryan Kawai Sanchez, an associate with real estate firm Matthews.
In particular, occupancy rates at hotels in Los Angeles County averaged more than 70% over the last 12 months, putting the region above the national average of 62.7%, according to data released by the travel industry nonprofit Visit California. The same is true for Orange County.
But not all hotels in the L.A. region are thriving, and location can be a deciding factor. Occupancy rates at the Glendale Hilton, for example, are hovering around 50%, said Travis Gemoets, an attorney at Jeffer, Mangels, Butler & Mitchell, which represents the property. Glendale, Pasadena and other more out-of-the-way areas don’t offer the same draw as more desirable and conveniently located areas such as downtown L.A. and near Los Angeles International Airport.
“It’s just a different market,” Gemoets said.
It was those differences in performance, Gemoets said, that led the Glendale Hilton’s owners to be reluctant to make a deal with Unite Here, since the increased wages the union was demanding would hit the hotel harder than more prosperous properties. The hotel eventually agreed to the wage increase last month, after other hotels in the area reached tentative agreements.
Workers took to the picket line at the Hilton Pasadena in December.
(Myung J. Chun / Los Angeles Times)
“We want labor peace and that’s why we agreed,” Gemoets said.
Union leaders have said they try to extract greater concessions from hotels that prolong negotiations. For instance, in its agreement with Hotel Figueroa, announced last week, the union won an extra dollar raise for non-tipped workers, amounting to a total hourly boost of $11 over the course of the contract, as well as an extra $1 per hour contribution to workers’ pensions. In its deal with the Glendale Hilton, the union secured additional hours for culinary workers and higher pay for tipped workers.
Hotels — whether unionized or not — are battling higher labor costs due to ripple effects from fast-food minimum wage legislation and rising insurance premiums, as multiple insurance providers have abandoned the California market, experts said.
Motels and lower-tier hotels, particularly in California’s rural areas or regions generally with less foot traffic than touristy coastal areas, are lagging behind, Sanchez said. Overall, hotels in the state haven’t completely recovered to pre-pandemic occupancy levels, he said.
“We are really only seeing that year-over-year growth in the luxury sector, and that’s largely due to higher-end customers not being as affected by inflationary pressures as the overall population,” Sanchez said.
Still, “hotels are in pretty darn good shape overall,” said Carl Winston, a professor and director of the hospitality and tourism management program at San Diego State.
Hotel businesses can — and do — pass along added costs to customers, by upping their prices, Winston said. Hotel room rates have gone up dramatically, far exceeding inflation, because it’s the “only thing they can grow.”
“If hotels have a cost increase, they can pass it along to the consumer tomorrow,” Winston said. Hotels change their prices every damn day.”
He said the wage increases built into the new labor agreements are far less of an issue for most major hotels than the debt many of them have taken on, primarily from mortgages with unfavorable interest rates, construction loans and commitments to investors.
“There’s a sense of resignation when it comes to organized labor. It’s almost like, ‘OK, we don’t want them, but they aren’t our biggest threat,’” Winston said. “If you go to hotel boardrooms today, they aren’t talking about wages as an existential threat, it’s the cost of debt they are talking about.”
The lodging industry typically evaluates its health based on two main metrics: occupancy rates and average daily rates.
After rising steeply the last few years, hotel prices in the U.S. this year have remained mostly flat compared with the same time last year, according to data released in April by online booking site Hopper. Higher prices allow businesses to draw in more revenue, but also run the risk of driving away customers.
The median nightly rate for hotels in California this year is $206, a 6% decrease in cost compared with last year’s median of $220, according to data from Kayak. In June, the state’s average daily rate was $192.16, down 0.7% year over year, according to Visit California.
An apparent spike in prices for hotel rooms, Airbnb and other short-term options may show up for California visitors in the coming months, due to a new California law aimed at bringing transparency to resort fees, service fees and hidden prices that jack up a consumer’s bill.
Under the law, businesses must include mandatory fees in their initial advertised prices. Lynn Mohrfeld, president and chief executive of the California Hotel and Lodging Assn., said the group supported the legislation in Sacramento because it should bring “a level playing field” between hotels and the vacation rentals.
“If everybody does it the same way, it makes it a better buying experience for the consumer,” she told The Times earlier this year.
Dealing with the hard numbers of pricing and occupancy rates are a welcome return to normal for hotel owners after the upheaval of the strike.
Unite Here deployed a combination of disruptive tactics — noisy picketing in the early morning, surprise work stoppages, marches through hotel lobbies — that helped put pressure on hotels, said union leaders and hotel industry experts in interviews.
“Hotels were like, ‘This is crazy,’” Bill Doak, of Westwood-based real estate investment firm Stockdale Capital Partners, said of Unite Here Local 11’s demands. Doak’s firm owns the Sandbourne, a Santa Monica hotel that reached a tentative agreement with the union last November. “It was the union’s tactic to make sure hotel owners felt the pain,” Doak said.
Hotels put together contingency staffing plans and told guests they expected to be able to serve them largely without interruption. That proved a difficult task at times.
When workers walked out during the busy Fourth of July weekend, people visiting Disneyland, the Anime Expo downtown and the L.A. leg of Taylor Swift’s Eras tour were greeted outside their hotels by picketing workers banging on drums and blowing vuvuzela horns — of which the union has purchased hundreds.
In online reviews, guests vented frustrations with both hotel management and picketing workers. “If you want to have a peaceful vacation, choose another location,” wrote a tourist who stayed at 1 Hotel West Hollywood in August.
Early on, managers at some hotels realized that the delivery of portable toilets signaled the union’s plans to carry out a work stoppage and protest in front of the property, said Kurt Petersen, Unite Here Local 11 co-president. To confuse them, the union sent toilets to hotels at random.
In January, Unite Here Local 11 organizers took stock of the dozens of hotels that had not yet agreed to new contracts and noticed about 80% were owned by private equity firms or operated by companies owned by such firms.
The union then made more concerted efforts to target companies such as Aimbridge and Blackstone with work stoppages and ramped up efforts to reach out to public pension funds invested in the private equity firms.
“Are those tactics working? Are they getting owners and managers to come to the table? I think the proof is in the results. They are winning right now,” Winston said.
Business
Chick-fil-A to launch new streaming service, report says
It’s “Vanderpump Rules,” but make it fast food.
Chick-fil-A may soon be known for more than its chicken sandwiches as the restaurant chain is reportedly moving into the entertainment space with its own streaming platform.
Deadline reported Wednesday that the popular fast-food restaurant chain has plans to launch a streaming service and a collection of original programs, including a family-friendly game show.
The company, based in Atlanta, has been working with several major production companies and is in talks to license and acquire content, Deadline reported.
Unnamed sources told Deadline that the streaming service could launch later this year and will feature unscripted television such as game shows and reality shows. The production companies Glassman Media and Sugar23, which are behind series such as NBC’s “The Wall” and Netflix’s “13 Reasons Why,” are said to be working on a game show for the new platform.
Chick-fil-A and the production companies did not respond to requests for comment from The Times.
Brian Gibson, who has worked on History’s “Top Gear” reboot and Fox’s version of “The X Factor,” is reportedly taking the lead on Chick-fil-A’s programming and is in talks with multiple producers.
Chick-fil-A, which has more than 3,000 restaurants in the country, would not be the first company outside of the entertainment industry to make its own originals. Lyft launched its game show “Lucky Lyft” in 2023 and Airbnb has produced a documentary that aired on MTV.
The report of Chick-fil-A’s venture comes at a time of uncertainty for the entertainment industry as studios scale back production in search of profitable models for their streaming services. And unscripted TV, which historically has been spared the downturns that periodically hit scripted TV, recently has been hit hard by the same market forces, including runaway production from California to regions with lower costs.
Business
Walt Disney Co. names a chair for CEO succession planning committee
![Walt Disney Co. names a chair for CEO succession planning committee Walt Disney Co. names a chair for CEO succession planning committee](https://ca-times.brightspotcdn.com/dims4/default/fc5a9e7/2147483647/strip/true/crop/3900x2048+0+337/resize/1200x630!/quality/75/?url=https%3A%2F%2Fcalifornia-times-brightspot.s3.amazonaws.com%2F29%2Fbb%2F9addf9be4b7b976c60ea7c9ea212%2Fla-photos-1staff-776331-et-ct-company-building-photos-670.jpg)
Morgan Stanley executive James P. Gorman will chair the succession planning committee tasked with finding and vetting Walt Disney Co.’s next chief executive, the company said Wednesday.
Gorman, who joined Disney’s board of directors earlier this year, has previous experience in succession planning and chaired the process at Morgan Stanley, Disney said in a statement. He currently serves as Morgan Stanley’s executive chairman, though he will leave that role in December.
“Succession planning is a top priority of the Board,” Disney board chairman Mark Parker said in a statement. “I am eager to continue collaborating with James on the Committee as we advance the important work we have already been doing to identify and prepare the next CEO of The Walt Disney Company.”
In addition to Gorman, the committee members include Parker, who most recently served as its chair, General Motors Chief Executive Mary Barra and Lululemon Chief Executive Calvin McDonald.
Succession planning is a key priority for the Burbank media and entertainment company. Current Chief Executive Bob Iger returned to run the company in 2022 after his hand-picked successor, Bob Chapek, was bounced from the role after nearly three years at the helm. Iger agreed to serve a two-year stint to focus on growth and to find the next long-term leader of the company.
Succession planning also became a sticking point in activist investor Nelson Peltz’s failed proxy campaign earlier this year against Disney. Shareholders have made it clear that Disney must be successful in its CEO selection this time around.
The succession planning committee has met six times this fiscal year and is reviewing both internal and external candidates with the board of directors, Disney said.
Internal candidates are being mentored by Iger, receiving external coaching and interacting with all board directors as part of the preparation process, the company said. Disney Entertainment Co-Chair Dana Walden, fellow entertainment Co-Chair Alan Bergman, parks, products and experiences chair Josh D’Amaro and ESPN boss James Pitaro are all seen as potential internal successors.
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