Uber Attracted A Record Number Of Drivers As Cost Of Living Spikes

As people worry about rising living costs, Uber drivers are driving to new heights. According to boss Dara Khosrowshahi, almost 5 million people now pick up passengers and deliver food for the company. This is 31% more than last years.

Uber has struggled with a shortage of drivers since the pandemic. This has led to longer wait times for customers. It is also more difficult to make money on the platform due to high petrol prices. However, Mr Khosrowshahi stated that interest in driving for the company was increasing despite these costs.

He stated, "That's right: More people are earning from Uber today than before this pandemic," in prepared remarks to investors discussing the company's financial performance. "Against the background of rising gas prices worldwide, this is a resounding endorsement for the value drivers continue seeing in Uber." Uber was criticized for its treatment of its drivers.

The Supreme Court in the UK ruled that Uber must count drivers as employees last year. Uber considers drivers self-employed contractors in many countries, including the US. This means that they do not have access to benefits like holiday pay or minimum wage. Uber claims that drivers appreciate the freedom to set their own schedules. Uber has responded to customer concerns by introducing a fuel surcharge to offset driver costs.

The company also revealed other improvements, such as allowing drivers to see the amount they will make before agreeing for a ride. This is a move that aims to increase their appeal to drivers. "Our goal was to improve the overall experience of drivers rather than relying on financial incentives," Mr Khosrowshahi stated.

Drivers are also returning to a higher demand that plummeted after the pandemic in 2020. Uber claimed that 1.87 billion trips were made on its platform between April and June. This is an average of approximately 21 million trips per day, up 24% over last year and 12% higher than the number taken in 2019, before the pandemic.

Gross bookings rose 33% to $29.1bn (PS24bn) due to increased demand. Although revenue more than doubled, it was $8.1bn. Some of this was due to a change in the way the company accounts for its UK operations.

The company lost $2.6bn despite the gains. The company stated that more than half of this was due to a decrease in its stakes in overseas businesses like Zomato Grab, Aurora and Aurora. After the unexpectedly good results, Uber shares rose more than 13%. According to Dan Ives, an analyst at Wedbush Securities, the numbers show that Uber can become profitable despite inflationary pressures. He stated that despite rising ride-share prices in the US/Europe, consumers continue to use Uber's platform, especially for travel and shifting to the office. "Uber is poised to profit into 2023, even though there are many post-pandemic trends."