The past couple of years, Uber’s been scrambling to fix their driver shortage. Their Hertz partnership to offer Tesla rentals was part of that strategy—making it easier for drivers to get on the road. Meanwhile, Lyft tried running its own rental fleet before shutting it down. They’ve kind of dropped the ball on the actual ride experience. I’ve been waiting way longer than I should for rides. Looks like they’re finally ready to tackle this:
Uber says its chronic shortage of drivers is finally in the rear-view mirror, allowing it to focus on passenger complaints such as cancellations and wait times, according to a top executive at the global ride-hailing group.
The company’s ten largest markets, which together make up more than three-quarters of its bookings, all saw month-on-month driver growth in August, said Andrew Macdonald, Uber’s head of mobility. “That is indicative of a broad-based trend we are seeing around the world,” he added. Globally driver supply is up 70 per cent year-on-year, while the UK hit 85,000 active Uber drivers in August, the highest number ever on the country’s roads.
Resolving its driver shortage has allowed Uber to turn its attention to addressing other customer complaints, including long wait times and drivers who cancel after initially accepting a trip, said Macdonald, a 10-year Uber veteran who took over global responsibility for its ride-hailing business in 2019.
Source: FT
More drivers should shorten rider wait times if they are in the places and hours people need them. It does not automatically mean better earnings for each driver; more supply can divide the same trip demand among more people. I would measure cancellations and driver earnings together before calling the shortage solved.
Uber later reported positive operating income, but this 2022 driver-supply update alone cannot explain that result. Rider wait times, driver utilization, and incentives would tell us more.