October 19, 2021

The Tampa Herald

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To attract new drivers, Uber announces it will spend 250 million dollars

2 min read

The transportation company Uber announced that it will allocate 250 million dollars to incentives to attract new drivers in the face of the current shortage in the United States, where its activity is already recovering after the pandemic.

“We launched a 250 million stimulus for drivers to increase their earnings, which are already particularly high,” said the San Francisco (California, USA) firm in a statement.

Passenger transport (Uber’s main source of income along with food delivery at home) plummeted around the world in March last year following the onset of the COVID-19 pandemic and the consequent restrictions on mobility, which that sank Uber’s billing for this activity.

In recent months and especially as the percentage of people vaccinated in the US increases, the demand for travel is recovering, but many of the former Uber drivers still do not return to work, which has led to a lack of supply and an increase in prices.

With respect to before the pandemic, Uber and its main competitor in the US, Lyft, have 40% fewer drivers, either because they have changed jobs, are waiting to be vaccinated to drive again or prefer to continue collecting unemployment benefit.

“There are more passengers asking for rides than there are drivers willing to offer them, making this an ideal time to be a driver,” said the company’s vice president for mobility in the US and Canada, Dennis Cinelli.

The 250 million dollars will go to increase the compensation of both new and existing drivers, although the company warned that this situation will be temporary and that profits will return.

 

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