Uber and Lyft sweeten job benefits amid driver shortages and high fees

The driver shortage in the US is driving Uber and Lyft ride prices to record highs and pushing services to rethink how they attract gig workers.

Uber Technologies Inc. and Lyft Inc. are investing millions of dollars in incentives for drivers to return, a short-term solution that has helped alleviate shortages and moderate fare increases in some areas, but has also raised costs. of companies.

The job crisis is not expected to end soon. Some analysts expect the problem to persist into the third quarter, putting pressure on Uber and Lyft to confront the changing dynamics of temporary work that they acknowledge will require long-term solutions.

Executives say the model they built their businesses on – attracting passengers at deep discounts and then incentivizing drivers to provide them – cannot be the model that sustains them.

“This is a time of deep introspection and reflection for a company like ours to stop and say, ‘How can we make the proposition for drivers more attractive in the long run?” said Carrol Chang, Uber’s chief of driver operations for the United States and Canada. “It is absolutely a reckoning,” he said.

Source: WSJ

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