Better pay on way for Uber and Lyft drivers as demand lifts
The two companies are resorting to temporary financial incentives while holding out hope that more workers will return after fears about pandemic safety wane
Gig economy workers are in the driver’s seat. With ride-hailing demand outstripping labour supply, a strengthening economy may accomplish what activists have failed to achieve: better pay and benefits.
This week, Uber Technologies and Lyft reported earnings that exceeded expectations, citing a rapidly improving market for ride-hailing. Not everything was perfect. While enthusiastic about demand trends, the two companies admitted driver shortages were becoming a serious limit for their businesses. For now, they are resorting to temporary financial incentives while holding out hope that more workers will return after fears about pandemic safety wane. But given the likelihood of a hotter labour market, I don’t believe that will be enough to build the sustainable workforce they need. Instead of using stop-gap measures, the two gig economy leaders should take the opportunity to find a more permanent solution...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.