Jens Wohltorf, CEO of Blacklane, explains how Uber’s drive sharing service differs.
Uber on Wednesday announced a $ 250 million driver incentive package aimed at encouraging new workers as the company has a shortage of drivers following the pandemic.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES, INC. | 56.88 | -1.15 | -1.98% |
Dennis Cinelli, Uber’s vice president of US & Canada Mobility, said in a blog post on Thursday that the rideshare app lost “many drivers” amid COVID-19 in 2020, and now there are more riders making travel requests ask if drivers are available to make it.
“The $ 250 million driver incentive will go directly to drivers who start driving again, as well as new drivers joining Uber,” said company spokeswoman Kayla Whaling. “The money will take the form of special bonuses and new guarantees. It will be valid for the next few months.”
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Whaling gave several examples of how the individual bonuses and new guarantees would work. In Austin, Texas, drivers would receive $ 1,100 after making 115 trips; in Phoenix, drivers will earn $ 1,775 if they undertake 200 trips; and in Miami, drivers will receive $ 1,750 if drivers complete 185 rides.
A driver and passenger wearing protective masks leave the charging area in a car showing Uber Technologies movements at San Francisco International Airport. (David Paul Morris / Bloomberg via Getty Images)
The purpose of the stimulus money is to welcome back existing executives and encourage new executives, Cinelli wrote.
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Cinelli gives an average hourly income for Uber drivers – before tips, Uber service fee and driving expenses – as $ 31.03 in Philadelphia, $ 28.73 in Chicago, $ 26.66 in Austin, $ 26.05 in Miami and $ 25.94 in Phoenix.
Earnings for drivers fluctuated during the pandemic. One manager told Business Insider in April 2020 that he earned only $ 2.50 an hour, despite having earned nearly $ 200 an hour before the pandemic. Uber classifies its executives as independent workers, so they are not eligible for minimum wage and other health benefits received by regular, full-time employees.
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Uber and the rideshare app Lyft received significant hits during COVID-19, as distance work, as well as the fear of the virus and limited spaces, caused a significant decrease in the demand for riders. Both companies implemented mandatory mask wear for drivers and riders early in the pandemic, as well as other safety measures to prevent the transmission of the virus.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| LIFT | LIFT INC. | 60.96 | -3.28 | -5.11% |
Uber’s delivery business kept the company profitable in 2020, according to its fourth-quarter earnings call in February. Uber Eats rose 130% in the quarter, while its driving unit was 47% lower. The delivery business caught up with $ 10.1 billion, compared to $ 6.78 billion for the fourth-quarter ride. Uber’s net losses for the quarter amounted to $ 6.77 billion, an improvement of 20% over the loss of $ 8.51 billion in 2019.
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Dara Khosrowshahi, CEO of Uber, reiterated several times during his call with analysts in February that he was ‘optimistic’ that the company’s joint venture would ‘start growing again’, but expressed concern about Uber not having ‘enough drivers’. has to meet the demand. to have. “
In 2020, Uber paid out more than $ 22 billion to drivers and delivery workers.
Fox Business, Lucas Manfredi, contributed to this report.