Uber, Lyft Sweeten Job Perks Amid Driver Shortage, Lofty Fares
A shortage of drivers in the U.S. is propelling prices for Uber and Lyft LYFT 1.49% rides to record highs and pushing the services to rethink how they attract gig workers.
Uber Technologies Inc. UBER 2.21% and Lyft Inc. are pouring millions of dollars into incentives for drivers to return, a short-term fix that has helped alleviate the scarcity and tempered fare increases in some areas but that has also raised the companies’ costs.
The labor crunch isn’t projected to end anytime soon. Some analysts expect the problem will persist through the third quarter, pressuring Uber and Lyft to deal with shifting dynamics of gig labor that they acknowledge will require long-term solutions.
Executives say the model they built their businesses on—luring riders with deep discounts and then incentivizing drivers to provide those rides—can’t be the model that sustains them.
