Uber announces 250mn dollar stimulus for drivers

"After a year of shutdowns and staying in, Americans are getting vaccinated and cities are opening up -- and, as they do, Uber is starting to come back. As we recover, we want to reinvest in drivers," Dennis Cinelli, Vice President, US and Canada Mobility at Uber, wrote in a blog post on Wednesday.

"We're launching a $250 million driver stimulus to boost already high earnings for drivers. Boosted incentives and guarantees will help welcome existing drivers back to Uber and ensure first-time drivers do well as they learn the ropes," Cinelli said.

Uber's ride-hailing business suffered significantly last year amid Covid-19 restrictions when many people had to stay at home to help contain the spread of the disease. 

"In 2020, many drivers stopped driving because they couldn't count on getting enough trips to make it worth their time," reads the Uber blog post announcing the stimulus.

"In 2021, there are more riders requesting trips than there are drivers available to give them - making it a great time to be a driver."

Uber said it wants drivers to take advantage of higher earnings now because this is likely a "temporary situation". 

As the recovery continues, the company expects more drivers will be hitting the road, which means that "over time earnings will come back to pre-Covid levels".