California’s Uber, Lyft dangle higher incentive to lure away drivers as demands surge

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California’s Uber, Lyft dangle higher incentive to lure away drivers as demands surge

On Wednesday, San Francisco, California-based ride-sharing trailblazer Uber Technologies Inc. said in a statement that the company would invest an additional $250 million in a bid to flesh up drivers’ earnings while proffering payment guarantees, a move widely seen as an effort to lure away new drivers as riders’ demands appeared to have outstripped supplies.

Aside from that, latest remark from Uber Technologies Inc., one of the closely monitored Silicon Valley start-ups which had yet to score an annual profit, came forth as Uber alongside its smaller Northern American rival Lyft said in separate statements that their ride-hailing platforms were earning more than that before the onset of pandemic outbreak, as trip demands turned a corner earlier this year following a sharp turnaround in US economy, while both ride-hailing platforms had pledged to offer extra incentives.

Uber, Lyft offer higher incentives to lure away drivers

On top of that, Uber Technology Inc.’s Vice President of US and Canada Mobility, Dennis Cinelli had urged the drivers in a blog post to capitalize on higher incentives, since the company could reverse its pay-out to pre-pandemic level after return of more drivers into its platform.

Meanwhile, as many US states lifted stiffer lockdown measures over recent months, paving ways for ride-hailing drivers to earn more amid a bottlenecked driver supply, Uber said the drivers spending at least 20 hours a week at its platform, were earning roughly 25 per cent to 75 per cent more than the amount they had been paid off in a pre-pandemic era, while Uber drivers in California and Philadelphia were reportedly earning about $31 and $29 per hour respectively.