Uber needs drivers. It wants to throw your money at the problem
Source: Business Insider ·
Uber shifts spending from rider discounts to driver incentives to address a driver shortage, causing potential fare increases.
From the source
Uber is shifting spending from rider discounts to incentives for drivers to work more.Sebastian Gollnow/picture alliance via Getty ImagesUber is trying to lure drivers to work more on its app.From the US to India, the company is spending more on driver incentives, CEO Dara Khosrowshahi said.It's a challenge that Uber has not faced since the end of the pandemic.Uber needs drivers, which means some riders will be shelling out more cash.In the US and abroad, the ride-hailing and delivery service is spending money to coax drivers to take more trips and deliveries, CEO Dara Khosrowshahi said on the company's third-quarter earnings call on Wednesday. Rider prices might even increase as a result.That's a change from last year, when Uber was spending more to attract more customers to use its app, Khosrowshahi said."This year, we're taking down rider incentives, and we're using those dollars to fund driver incentives," he said on the call.The shift in spending "does mean sometimes higher…
BestAIBroker analysis
- Finance-aware sentiment: slightly negative (-0.20 on a -1 to +1 scale).
- Event classification: OTHER.
- Market importance score: 28/100, weighting entity relevance, source credibility, multi-outlet coverage and recency.
- Symbols referenced: UBER.