Uber Offers Drivers $250 Million in Bonuses Amid Record Demand

Uber record demand

Rideshare and delivery giant Uber has offered bonuses of $250 million amid record demand for food delivery and rideshares globally. 

Uber announced earlier this week that demand for its food delivery and passenger services was hitting all-time highs in March. 

As a result, Uber has rolled out a number of sign up bonuses and incentives for drivers and delivery riders. 

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The news comes via a government filing from Uber, who said that after demand for its services dropped dramatically amid the pandemic, demand for its rideshare and delivery services in particular has seen Uber’s economic activity at all-time highs. 

Uber says that as the public’s perception of public transportation changed amid health risks during the pandemic, rideshare services like Uber and Lyft have benefitted immensely. 

Uber’s booking numbers hit an all-time high in March, 2021, to an annual run rate of $30 billion; last year’s numbers saw Uber earn $26.4 billion from its passenger-ferrying services.

The company’s food delivery services also jumped by a dramatic 150% over March 2020’s figures, earning the company $52 billion. 

Uber says that in order to keep up with demand, it is offering more than $250 million in sign-up bonuses and incentives for existing drivers and delivery riders to stay with the company. 

Uber says that a large number of drivers quit amid the economic downturn of March-April, 2020, and is now trying to lure them back into delivering food and providing passenger services. 

Uber Offers Drivers $250 Million in Bonuses Amid Record Demand

“We want drives to take advantage of higher earnings now because this is likely a temporary situation,” Uber said in a statement titled ‘Getting Drivers Back on the Road.’ It continued to explain that “as the recovery continues, we expect more drivers will be hitting the road, which means that over time, earnings will come back to pre-COVID levels.” 

As it stands, the supply of drivers and delivery riders is being outpaced by the demand for Uber’s services. 

The benefits extend to a vaccination program for drivers, thanks to Uber’s partnership with Walgreens, a large pharmacy chain in the U.S..  

According to a report from CBS News, “drivers may still be holding out to see if Uber will sweeten pay and benefits.” 

“Uber was forced last month to classify its drivers in the United Kingdom as employees – not contract workers – after a landmark Supreme Court ruling there. The company said Monday it has begun a historical claims settlement for its 70,000 U.K. drivers, who under the new classification are entitled to minimum wage and benefits such as vacation pay.” 

Last year, we saw a massive lobbying movement on the behalf of rideshare and delivery services like Uber and Lyft, who were fighting against the passage of similar legislation in the U.S. state of California. 

California’s Proposition 22, advocated for delivery riders and passenger drivers to be classified as contractors, rather than employees. The measure passed the Californian ballot with 58% of support, meaning that California’s delivery riders are set to remain contractors. 

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