Uber to spend big to attract more drivers to its service

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.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More like this

Uber in Talks to Acquire BluSmart: A Game-Changer for India’s EV Ride-Hailing Market?

Uber in Talks to Acquire BluSmart: A Game-Changer for...

Uber, the global ride-hailing giant, is reportedly in early discussions to acquire BluSmart Mobility, an Indian electric...
Tesla Robotaxi

Tesla Robotaxi: Uber vs Tesla – The Robotaxi Battle...

Tesla Robotaxi: The future of autonomous ride-sharing is shaping up to be a competitive battlefield, and Uber...

Govt Issues Notices to Uber, Ola for Differing Ride...

The Indian government’s Central Consumer Protection Authority (CCPA) says that while booking a cab, Ola and Uber...
Does Uber Charge More on iPhones? Viral Post Sparks Heated Debate

Does Uber Charge More on iPhones? Viral Post Sparks...

A recent LinkedIn post by Indian entrepreneur Nirali Parekh has ignited a fiery debate online, questioning whether...

Rapido Riding High as the Unrivaled Leader in India’s...

Rapido has been the undeniable market leader for bike-taxi services in India in recent years. Rapido has...

LATEST NEWS

8 Best Characters for Genshin Impact Imaginarium Theater: April 2025 Meta Guide

As Genshin Impact version 5.5 continues to evolve the gameplay experience, the April 2025 season of Imaginarium Theater presents travelers with fresh strategic challenges...

Phantom Fist Kanabo in Assassin’s Creed Shadows: Complete Guide to This Legendary Weapon

In the sprawling world of Assassin's Creed Shadows, legendary weapons serve as both coveted trophies and game-changing tools that can dramatically alter your combat...

Blood Rain Bow in Assassin’s Creed Shadows: Complete Guide to Unlocking This Legendary Weapon

As players venture through the breathtaking landscapes of feudal Japan in Assassin’s Creed Shadows, the pursuit of legendary weapons becomes a compelling side journey...

Apple May Expand iPhone Production in Brazil: All We Know

Following sharp declines in Apple’s stock triggered by escalating US-China trade tensions, a report from Brazilian outlet Exame suggests Apple is considering shifting more...

Featured