Uber Attracts More Drivers as Cost of Living Bites
There has been a all-time-high spike in the number of people driving for Uber as a source of income, as concerns about the rising cost of living push people to find new ways to make money.
According to the CEO, Uber, almost 5 million people have now registered on Uber and are now picking up passengers or making food deliveries for the company, 31% more than last year.
Uber had been struggling with a driver shortage since the pandemic, leading to long waiting times for customers.
High petrol prices also make it harder to earn money on the platform.
Khosrowshahi explained that interest in driving for the company was accelerating despite those costs.
“That’s right: more people are earning on Uber today than before the pandemic,” he said in prepared remarks for investors to discuss the firm’s financial performance.
“Against the backdrop of elevated gas prices globally, this is a resounding endorsement of the value drivers continue to see in Uber.”
Uber has been criticised for the treatment of its drivers.
In the UK, the Supreme Court ruled last year that the company must count them as workers. But in many countries, including key markets such as the US, Uber classifies drivers as self-employed contractors, meaning they are not entitled to benefits such as minimum wage or holiday pay.
Uber has said drivers value the flexibility to choose their own schedules. But it has also responded to concerns, for example introducing a fuel surcharge that customers pay to help offset driver costs.
It also recently unveiled other changes, including allowing drivers to see how much they will make before agreeing to take a ride, aimed at making their platform more appealing to drivers.
