Uber Announces $ 250 Million Inspiration to Bring Back Drivers

Uber CEO Dara Khosrowshahi will speak at a product launch event in San Francisco, CA on September 26, 2019.

Philippe Pacheco | AFP via Getty Images

Uber said Wednesday that the state had withdrawn some of its pandemic restrictions and began deploying vaccines, spending $ 250 million on a one-off stimulus aimed at getting drivers back on the road.

The company said the incentives welcome existing drivers and help “ensure that first-time drivers will be successful when learning ropes.”

A Uber spokesman said the company will roll out payments over the next few months and offer a variety of incentives. In Austin, for example, the company said the driver was guaranteed $ 1,100 for 115 trips. In Phoenix, drivers are guaranteed $ 1,775 for 200 trips.

Uber expects demand to eventually increase across its US business. And as more drivers join the program, higher profits can decline.

“We want drivers to take advantage of higher revenues as this is likely to be a temporary situation. We expect more drivers to pave the way as recovery continues. That is, time. Revenues will return to pre-Covid levels over time, “the company said.

The coronavirus pandemic has severely restricted travel and daily life, resulting in a dramatic drop in demand for ride-sharing companies over the past year. Even if the amount of ride-sharing plummets during the pandemic, two major US players in ride-sharing, Uber and Lyft, have promised to make a profit by the end of 2021 on a coordinated EBITDA basis. .. In the fourth quarter of 2020, Uber lost $ 454 million on an adjusted EBITDA basis and $ 966 million on a GAAP basis, with quarterly revenue of $ 3.17 billion.

In the afternoon trading, Uber’s share price fell nearly 3%.

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Uber Announces $ 250 Million Inspiration to Bring Back Drivers

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