© Reuters. FILE PHOTO: The screen displays the company logo for Uber Technologies Inc in 2019
By Tina Bellon
(Reuters) -Uber Technologies Inc and Elevator Inc (NASDAQ 🙂 says U.S. drivers on their bus ride platforms made significantly more than pre-pandemic as ride demand outstripped driver supplies, prompting companies to provide more incentives.
Uber (NYSE 🙂 on Wednesday said it would invest an additional $ 250 million to increase driver income and provide payment guarantees in an effort to encourage new and existing drivers.
In a blog post, Uber’s Vice President of U.S. & Canada Mobility, Dennis Cinelli, told drivers to take advantage of their higher income before paying their pre-COVID-19 salaries when more the driver returns to the platform. https://ubr.to/2Q6pSxN
Uber says drivers who spend 20 hours online per week in many cities have seen average hourly earnings about 25% to 75% higher than pre-pandemic, making around $ 31 in Philadelphia and nearly 29 dollars in Chicago. Those earnings are after Uber’s fees but before the customer’s tipping and expense, for which the driver is responsible as an independent contractor.
Lyft said on Tuesday that drivers in the company’s top 25 markets earned an average of $ 36 per hour compared with $ 20 per hour before the pandemic. Those figures include tips, but Lyft does not disclose the tip-to-income ratio. Lyft is also offering additional offers and promotions in select markets.
The increase in demand comes as more and more US states lift embargo restrictions implemented in response to the COVID-19 pandemic, vaccination rates rise and more and more Americans begin to move. come back.
But motorbike taxi drivers, many of whom stopped driving during the peak of the pandemic because of safety concerns and amid sluggish demand, slowed back to the road.
Uber and Lyft executives have told investors that driver supply is a concern in the second half of this year, when demand is expected to increase further. Lyft says investments to boost driver supplies will generate first-quarter sales winds of between $ 10 and $ 20 million.
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