Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

Uber and Lyft asked Congress to bail out their drivers. Now they can't get enough drivers to come back to work.

Uber and Lyft asked Congress to bail out their drivers. Now they can't get enough drivers to come back to work.

Uber and Lyft are seeing surging demand as the US economy reopens. But drivers aren't returning, wary they'll make enough money to be worth the risk.

Uber and Lyft have some good news ahead: Riders in the United States are expected to flock back to the ride-hailing apps soon as COVID-19 cases wane due to increased vaccinations. The bad news is there doesn't seem to be enough drivers yet to pick them up.

In recent weeks, the app companies have been scrambling to rebuild their gig-economy workforce to meet an expected windfall of returning customers. But as Uber and Lyft pull out the stops to appeal to drivers, they're encountering a very different labor market than before.

Drivers dropped off the apps' ridehail services in the last year for many reasons. Many told Insider they were worried about their health, some found freelance work in different industries or for the apps' own delivery networks, others gave up their cars altogether. The chief concern, though, seems to be reliability of income. And with some drivers benefiting from a stronger financial safety net because of federal stimulus packages, the app companies need to overcome skepticism that there's more money in driving than not. Uber's and Lyft's once-assured worker pipeline is no longer as reliable.

Spokespeople for Uber and Lyft declined to comment on their pipelines but highlighted investments they've made throughout the pandemic to support drivers, including a recent driver stimulus, and pointed to data claiming drivers earned more now in many regions than before the pandemic.

Investors seem unconcerned; share prices for Uber, and to a lesser extent Lyft, are riding high in recent months on the expectation they'll be pandemic winners. The companies boast leaner corporate structures and are even talking about becoming profitable in the near future.

But that optimism rests on getting a supply of drivers to meet the demand. Earlier this month Uber announced a $250 million investment in driver stimulus, full of perks and short-term incentives. Drivers have been flooded with offers and hype, saying that people are making $30 an hour or more, including tips. That's twice what some drivers say they normally make – and a huge bump from the doldrums of the pandemic.

But others aren't so sure. One, who works for Uber, got an offer from the company in March that guaranteed he'd make at least $2,100 in a month in fare and tips. But he said he's currently receiving $3,000 a month in federal and state unemployment payments.

"I need $2,400 a month just to break even. It shocked me they'd use that number," he said. The worker, who drives for Uber in the Bay Area, preferred to remain anonymous for fear that speaking out could get him kicked off the app. He's planning on remaining on unemployment until September when the federal supplement runs out.

Economists are quick to point out that most people who receive unemployment benefits typically do not avoid rejoining the workforce. A study from Yale's business school last year found that people who received the initial $600 a week unemployment supplement that was part of the federal government's stimulus package returned to work at similar rates to those who did not receive those benefits.

Indeed, other drivers who have received unemployment benefits say their reasons for remaining off the app are more about COVID worries or issues with their car. But many have expressed concerns that despite the promises from the companies, they're not sure they'll make enough money.

"It's kind of a pride thing, nobody wants to feel like they're leaching off the system," said Erica Mighetto, an Uber and Lyft driver who's been off the platform since last spring. But even now as the offers from the companies are coming on a near daily basis she's still unsure whether it's worth buying insurance for her car again to re-qualify it for service.

Despite the promise of good money from the ride-hailing companies now, "you have to ask how long is it going to last?" Mighetto said.

New obstacles


If increased unemployment benefits continue to be a hurdle for recruiting drivers, the irony, of course, is the app companies partly have themselves to blame.

Last summer, Uber's CEO Dara Khosrowshahi wrote an open letter to President Trump in which he "respectfully and urgently request[ed]" that the company's 1.3 million drivers be included as workers eligible for the economic stimulus. When they were included in the final package, Khosrowshahi made a statement commending the move.

The episode touched on an ongoing controversy over how to classify these drivers. Labor advocates have lobbied hard for them to be classified as employees, and thus eligible for benefits and protections. Meanwhile the companies have advocated for them to remain contract workers, albeit with some benefits.

"I suspect some of the altruism exhibited by gig economy corporations in wanting workers to be included in the stimulus package, part of it was driven by public relations image," said R.A. Farrokhnia, a professor at Columbia Business School.

"But in the grand scheme they're most likely not regretting it. That was the right call to make at the moment."

For drivers, navigating the thicket of different unemployment programs to make sure they received the state or federal benefits has been its own obstacle. Mighetto said she's currently waiting to get over a month's worth of insurance that's been held up.

Other drivers are just hoping to see the promised big fares that Uber and Lyft have been hyping up. Lisa Ditalia, who drives for Uber in the Philadelphia area says she's heard the stories about offers, but hasn't seen anything come her way. She worked throughout the pandemic, even as fares slowed to a trickle, and is worried that her loyalty means she hasn't been eligible for the offers the companies are making to lure drivers back.

"Why don't you take care of the people who took care of you during the pandemic?" Ditalia said.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
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
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×