Uber Technologies Inc (NYSE: UBER) said that drivers are steadily returning to its ride-hailing platform on Tuesday. As the company is looking to come back on track, thanks to lifting restrictions that resulted in high demand for travel, its ride-hailing platform will facilitate passengers in getting a smoother ride by decreasing the waiting time.
According to Uber, a driver’s hours increased by 4.4% in May. It’s the first time that Uber has witnessed such a thing since 2021’s start. Around 33,000 drivers joined Uber’s platform in the United States in May. Last year due to COVID-19, most of the drivers had stopped working. However, Uber’s head of U.S. & Canada for operations, Carrol Chang, said that drivers are gradually returning to Uber to take advantage of the high travel demand.
Lifting Its Revenue
Uber needs to get drivers back on the road. It will help the company in lifting its revenue. Moreover, Uber is also getting customers complaints about expensive booking costs and long waiting times. Uber is trying to attract drivers through COVID-19 vaccine partnerships. In April, the company said to boost driver earnings, and it will invest $250 million. Early, Uber told drivers in the United States to take advantage of hikes in pay. Uber said drivers who spend 20 hours online per week make about 25% to 75% more hourly earnings than pre-pandemic. The earnings exclude tips & expenses. To get drivers back to work, Uber is ready to pay them more, the company said. In the U.S, Uber is facing a crunch in the number of drivers that resulted in increased waiting time for customers and also expensive rides.
Demand For Travel
With more U.S. states lifting lockdown restrictions implemented to control the spread of COVID-19, and vaccination is also going on, there is an uptick in demand for travel. However, many drivers who have stopped driving during the pandemic’s peak aren’t swiftly getting back to work over health and sluggish demand.