Uber and Lyft Tout drivers pay as vehicle demand increases

Image source: Uber Technologies

Tina Beron

(Reuters)-Uber Technologies Inc and Lyft Inc have encouraged US drivers on the ridehail platform to generate significantly more revenue than before the pandemic, as travel demand outpaced drivers’ supply and encouraged them to provide additional incentives. Said that there is.

Uber announced on Wednesday that it will invest an additional $ 250 million to increase driver revenue and provide payment guarantees to incentivize new and existing drivers.

Dennis Cinelli, Uber’s Vice President of Mobility in the United States and Canada, said in a blog post that as more drivers return to the platform, they will take advantage of higher revenue before salaries return to pre-COVID-19 levels. I told you.

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According to Uber, drivers who spend 20 hours a week online in many cities have a median hourly revenue of about 25% to 75% higher than before the pandemic, about $ 31 in Philadelphia and 29 in Chicago. It’s close to the dollar. These revenues are after Uber’s fees, but before the tips and costs of customers whose drivers are responsible as independent contractors.

Lyft said on Tuesday that drivers in the company’s top 25 markets are making an average of $ 36 an hour, compared to $ 20 an hour before the pandemic. Although these numbers include hints, Lyft does not disclose the percentage of hints in revenue. Lyft also offers additional incentives and promotions in some markets.

Increased demand will come as more U.S. states lift the blockade restrictions enforced in response to the COVID-19 pandemic, vaccination rates rise, and more and more Americans begin to move again. ..

However, ridehail drivers who stopped driving during the pandemic due to safety concerns and sluggish demand took longer to get back on the road.

Uber and Lyft executives said investor driver supply was a concern in the second half of this year, when demand is expected to increase further. Lyft said the investment to increase driver supply would have a headwind of $ 10 to $ 20 million in first-quarter revenue.

Reported by Tina Bellon in Austin, Texas. Edited by Stephen Coates and Nick Zieminski.


Source: Reuters


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