ReutersApril 8, 2021 12:16:51 IST
By Tina Bellon
(Reuters) – Uber Technologies Inc and Lyft Inc said American drivers on their public transportation platforms earned significantly more than before the pandemic as demand for travel outstripped supply for drivers, prompting companies to offer additional incentives.
Uber said Wednesday it would invest an additional $ 250 million to boost driver earnings and offer payment guarantees in an effort to incentivize new and existing drivers.
Uber US & Canada VP of Mobility Dennis Cinelli in a blog post told drivers to take advantage of higher earnings before payment returns to pre-COVID-19 levels as more drivers return to the platform.
Uber said drivers who spent 20 hours online per week in many cities made average hourly earnings 25% to 75% higher than the pre-pandemic, earning about $ 31 in Philadelphia and close to $ 29 in Chicago. Those earnings are after the Uber fare, but before customer tips and expenses, for which drivers are responsible as independent contractors.
Lyft said Tuesday that drivers in the company’s top 25 markets earned an average of $ 36 an hour compared to $ 20 an hour before the pandemic. Those numbers include tips, but Lyft did not disclose the proportion of tips in earnings. Lyft also offers additional incentives and promotions in select markets.
The uptick in demand comes as more U.S. states lift lockdown restrictions implemented in response to the COVID-19 pandemic, vaccination rates rise, and a growing number of Americans begin to move again.
But hail drivers, many of whom stopped driving during the height of the pandemic over safety concerns and amid slow demand, have been slow to get back on the road.
Uber and Lyft executives have told investors that the supply of drivers was a concern for the second half of the year, when demand is expected to rise further. Lyft said investments to boost driver supply will create a headwind of first-quarter revenue of $ 10 million to $ 20 million.
(Reporting by Tina Bellon in Austin, Texas; Edited by Stephen Coates and Nick Zieminski)
This story has not been edited by Techno Feed staff and is generated by automatic feed.