According to sources, Uber Technologies Inc. is planning to spend around $250 million to get drivers back on the road and recruit new ones as the coronavirus pandemic eases in the U.S.
Using the money, the company plans to provide bonuses for drivers, with guaranteed pay and on-boarding for workers who are new to Uber. The program anticipates an eventual rise in demand as more Americans are vaccinated, and stores reopen.
As for the time when the company will invest the money, according to an official statement, it plans to do so in the coming months. Exact date is not mentioned, but it may just depend on whether covid can be successfully controlled in the country.
The company also stated that the bonuses it will provide would depend on various factors, including location and time. As we already know, that the company is recently running low in business, with its shares declining as much as 3.6% during trading Wednesday.
The company’s income and revenue are mainly dependent on the Ride services which it provides. However, owing to the pandemic, rider-ship heavily declines. Though work-from-home increased the food delivery service of the company, that hardly makes any difference. Many drivers for Uber and Lyft Inc. either sought work elsewhere or applied for government stimulus programs.
As such, to tackle the loss in manpower and to increase its driver base, Uber Chief Executive Officer Dara Khosrowshahi signaled a rise in driver bonuses during a conference call with investors in February. He proposes an increase in the spending in the first half of 2021, stating that it would boost driver supply and meet what he expected to be higher demand from riders.