Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Uber attracts record number of drivers as cost of living bites

Uber attracts record number of drivers as cost of living bites

The number of people driving for Uber has hit an all time high, as concerns about the rising cost of living push people to find new ways to make money.
Almost 5 million people are now picking up passengers or making food deliveries for the company, 31% more than last year, boss Dara Khosrowshahi said.

Uber has been struggling with a driver shortage since the pandemic, leading to longer waiting times for customers.

High petrol prices also make it harder to earn money on the platform.

But Mr Khosrowshahi said 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.

"Rather than relying solely on financial incentives, our goal has been to improve drivers' overall experience," Mr Khosrowshahi said.

Higher demand, which had plunged when the pandemic hit in 2020, is also helping to attract drivers back.

Uber said there were 1.87 billion trips on the platform in the April-June period - an average of roughly 21 million per day - up 24% from last year, and 12% more than were taken in 2019 before the pandemic hit.

The rise in demand helped push gross bookings up 33% to $29.1bn (£24bn)

Revenue more than doubled to $8.1bn, though some of that was due to a change to how the company accounts for its UK business.

Despite the gains, the company lost $2.6bn. It said more than half of that was due to a decline in the value of its stakes in overseas companies such as Zomato, Grab and Aurora.

Uber shares jumped more than 13% after the better than expected results. The numbers suggest a path for Uber to become profitable, despite inflationary pressures and lingering driver shortages in some cities, said Dan Ives, analyst at Wedbush Securities. "In a nutshell, despite rising ride share prices throughout the US/Europe clearly consumers are still moving to the Uber platform especially as travel, shifting to the office, and other post pandemic trends take hold globally with Uber poised to benefit into 2023," he said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×