A new Consumer Watchdog report is raising questions about whether Uber’s insurance reserves could become a funding source for its robotaxi ambitions if the company succeeds in limiting its accident liability.
The report focuses on Aleka Insurance Inc., Uber’s captive insurance company in Hawaii. According to Consumer Watchdog, Aleka is wholly owned by Uber, run by Uber executives, and used to handle the company’s self-funded insurance program.
Consumer Watchdog said Uber has built up $12.46 billion in insurance reserves in 2025, up from $9.8 billion in 2024 and $6.7 billion in 2023. The group said that increase comes as Uber pushes for legal changes that would limit its liability for auto accidents.
Those efforts include a pending California ballot measure, as well as tort reform efforts in New York, Indiana, and Nevada. Consumer Watchdog argued that, if Uber succeeds, the company could free up part of its reserves and treat the money as unrestricted cash, potentially using it to support its robotaxi rollout.
"Uber's corporate strategy is clear: limit liability, over-reserve, and re-invest the savings in robocars. Meanwhile innocent accident victims are being asked to give up their rights to recover for their injuries in all auto accidents so Uber and its executives can profit from its cynical strategy,” the report stated. The group said Uber self-funds nearly 95% of its risk, based on public documents.
Consumer Watchdog said that setup gives Uber control over insurance-related funds generated from rides. Since the money is reserved for claims, the report said it is not taxed the same way profits would be. If the funds are later reclassified as unrestricted cash, the group said Uber could use them while making large robotaxi investments.
The report also said Uber’s insurance reserves grew faster than driver trips between 2023 and 2025. Consumer Watchdog said this may suggest that the company has been setting aside more money than needed. It also cited Uber financial disclosures showing that about $4.1 billion was moved from insurance reserves to cash on the company’s balance sheet during 2024 and 2025.
The report also raised concerns about how Uber described its insurance costs to California lawmakers. In 2025, Ramona Prieto, head of public policy at Uber, told legislators: "In LA County, 45% of every fare is a straight pass-through to government-mandated insurance."
Consumer Watchdog disputed that claim, saying Uber was paying its own captive insurer at rates it set while its reserves continued to grow. The group also said Uber tied executive compensation to the passage of SB 371 and other insurance reform efforts in 2025, citing pay awarded to chief marketing officer and SVP of public affairs Jill Hazelbaker and campaign-related payments to firms connected to Prieto’s fiancé.
The report framed those efforts as part of a larger concern over Uber’s robotaxi plans. It pointed to Uber’s past autonomous vehicle testing in Arizona, where an Uber self-driving vehicle struck and killed a pedestrian in 2018. Kloczko said the concern is that funds meant for accident victims could instead be redirected to automation.
"Uber is building a financial war chest at the same time as it is minimizing its obligations to the very people harmed by its operations. Funds intended to compensate crash victims could instead be redirected to bankroll a risky automation agenda. If successful, this strategy could allow the company to deploy autonomous vehicles with reduced liability, effectively granting a license to kill,” Kloczko said.
