This is Why Uber and Lyft Drivers Are Not Going Back to Work

After a long year of battling the coronavirus pandemic, ride hailing companies are coming back to life, which includes Uber and Lyft.

Both companies however may be facing a big problem. Drivers may not want to return to work.

The two companies are having a hard time bringing back drivers to full speed which means people have longer wait times and higher prices to hail a ride.
Here’s why Uber an Lyft are struggling to bring back former drivers.
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Drivers are in a low-key strike,” Nicole Moore, a volunteer organizer with Rideshare Drivers United, told CNBC.

“Right now it’s a mini debacle for Uber and Lyft in terms of driver shortages and surge pricing throughout the US,” Wedbush’s Dan Ives wrote in an email.

“Drivers are ~40% below capacity.”

Many of the drivers are still afraid of the pandemic. Less than 50% of the population in the U.S. are fully vaccinated against the virus according to Center for Disease Control and Prevention data.

“This thing is not over yet, people can still get sick,” said Louis Wu, a Texas resident and former rideshare driver, to CNBC.

Uber has said that 80% of drivers planned to come back once vaccinated.

Other reasons why drivers may not be coming back is because they had made the switch to delivering food or groceries.

“In times of Covid, there’s a lot less customer interaction with food delivery vs transporting a passenger in your backseat,” said Harry Campbell, who runs The Rideshare Guy blog, to CNBC in an e-maiil. “You also put less miles on your car as a delivery driver since people order from nearby restaurants vs a full-time ride-hail driver that can easily do 1,000 miles per week or more. A lot of ride-hail drivers just get tired of dealing with people too.”

Other drivers may have stayed on unemployment benefits, but those are expected to expire later this year.

“September will be the big tell tale sign if drivers were holding out because of unemployment,” said Chris Gerace, a driver and contributor to Campbell’s blog.
Some workers have even made transitions to other kinds of jobs, including office jobs or truck driving.

Time will tell if Uber and Lyft will be successful in bringing back drivers to the roads.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.