Despite the classification of ride-hailing drivers as “essential workers” during the epidemic’s early days last April Uber’s business dropped by 80%. Drivers decided they would not risk contracting or spreading COVID-19 for measles revenue provided by some rides per day, so when the Federal Car Act increased pandemic unemployment assistance to foment employees, many amber The drivers decided to hang their keys.
With more than a quarter of the US population already vaccinated, Uber is now in a sticky situation, with more riders requesting travel than the driver is available. The ride-hailing giant not only wants drivers to know that there is a trade to be had once again, but they also want to sweeten the deal with incentives.
On Wednesday, the company announced the launch of a $ 250 million driver incentive to return drivers and recruit new ones as the epidemic began in the US to allow both drivers and new drivers to receive bonuses in the coming months. For an Uber spokesperson.
“In 2020, many drivers stopped driving because they couldn’t make enough trips to make it worth their while,” the excitement is announced in a blog post. “In 2021, there are more riders requesting drivers are available to deliver them than trips – it’s a great time to be a driver.”
The current average hourly rate for cities such as Philadelphia, Austin, Chicago, Miami and Phoenix is $ 26.66, which is 25% to 75% higher than in March of the previous year, due to high ridership demand and low drivers supply. . Uber wants drivers to take advantage of higher earnings now because “it’s a temporary situation.” Meaning that as the country is recovering and more and more gig workers get behind the wheel, earnings will decrease from their current levels.
The incentive amount will go above those hourly rates, a spokesperson told ClearTips. The incentive structure will be based on individual activity, as well as location. For example, in Austin, drivers are guaranteed $ 1,100 if they complete 115 trips. In Phoenix, drivers can earn an additional $ 1,775 for 200 trips.
The money will also go towards minimum wage and on-boarding guarantee for new Uber drivers, and tThat entire $ 250 million pool is coming directly from Uber’s pocket. Shares of the company declined 3.6% during Wednesday trading.
Uber is helping streamline the process of getting vaccinated for drivers With an in-app booking portal under its partnership with Walgreens.