Uber is offering its drivers $250m in incentives, here’s why

Charles Abuede

Global ride-hailing company, Uber has announced a $250 million one-time stimulus package in a move that is expected to bring back its drivers and also onboard first timer drivers who will do well as they learn the ropes. This company made this public on Wednesday as states start to roll out vaccines and ease COVID-19 related restrictions.

According to the statement by the ride-hailing company’s spokesman, Uber will begin the payments in the upcoming months (May) and will be made in several types of incentives. The company also believes that higher earnings will drop as more drivers begin participating in the programme which will see drivers complete a number of trips to receive a certain amount across the United States.

“We want drivers to take advantage of higher earnings now because this is likely a temporary situation. As the recovery continues, we expect more drivers will be hitting the road, which means that overtime earnings will come back to pre-COVID levels,” the company said.

Furthermore, the company’s spokesman revealed that the San-Francisco based ride-hailing firm is highly confident of an eventual pick up in the demand across the country’s business resulting from the massive hit from the coronavirus pandemic that has, regardless, infected over 31 million people in the country and subsequently lead to over half a million deaths.

Meanwhile, Uber, who had previously committed to turning profitable on the adjusted basis of earnings before interest, taxes, depreciation and amortization (EBITDA) by the end of the current year has reported a $3.17 billion of revenue in the last quarter of 2020 and falling short of the estimates by analysts. However, the American technology company performed largely upbeat in the stock market last year with an annual gain of close to 65 per cent with its market capitalisation currently at about $106 billion.