Uber Begins to See Drivers Returning to Platform

Uber said the week of May 17th marked a new record for drivers returning to the road since the start of 2021, with active driver hours increasing 4.4% from the previous week

Photo Credit: Austin Distel

Uber disclosed today that drivers were gradually returning to the platform - revealing the week of May 17th marked a new record for drivers returning to the road since the start of 2021, with active driver hours increasing 4.4% from the previous week.

Overall, the Company said 33,000 drivers joined its U.S. platform during the week of May 17th. Most of them had stopped working last year due to COVID and lackluster trip demand. Uber didn’t say how current driver figures compared to pre-COVID levels.

"With the economy bouncing back, drivers are returning to Uber in force to take advantage of higher earnings opportunities from our driver stimulus while they are still available" - Carrol Chang, Uber's head of U.S. and Canada driver operations

Uber has tried to lure drivers back on to its platform with a driver stimulus and has reported drivers on its platform are earning of over $30 per hour in several American cities. As more Americans get vaccinated and people begin to return to pre-pandemic activities (i.e. travel, commuting, going out) the well documented driver shortage has been causing noticeable issues for Uber and Lyft, with many passengers reporting increased wait times and costs. In fact, a recent analysis by research firm Rakuten Intelligence found that the cost of a ride was 37% higher in March than it was a year ago.

Cristine Sanchez, a hospitality worker in New York, used to pay around $20 for Uber rides to Brooklyn from Queens. Now the fare is around $38, she said, and a trip to the Bronx costs almost $45.

Ms. Sanchez recently realized that airfares were nearly the same price as her Uber rides. When she found a $60 round-trip flight to Miami this month, she booked an impromptu trip with friends.

“If the choice is go to the Bronx or go to Miami, I’m going to Miami,” Ms. Sanchez said. “It’s like come on, Uber, come on, Lyft, let’s get it together.” - From NY Times article ‘Prepare to Pay More for Uber and Lyft Rides’, May 30th, 2021, Kate Conger

As we wrote a few days ago, we believe as driver supply begins to reach equilibrium with passenger demand, Uber NYC will reinstitute the planner and likely restart the driver waitlist. If you are thinking about returning to the road with Uber (or Lyft), now might be as good a time as any.

AutoMarketplace NYC Newsletter is written by Dawood Mian, Founder & CEO of AutoMarketplace. He covers the NYC for-hire transportation industry and related news. Search AutoMarketplace for cars, parts, tires, technicians, body shops, reviews, jobs & more. Find great deals at TLCMKT.COM (new site AutoMarketplace.io to be launched soon, sign-up to the newsletter if you are interested to learn more ahead of launch)