Beautiful Virgin Islands

Monday, Jul 20, 2026

Uber and Lyft asked Congress to bail out their drivers. Now they can't get enough drivers to come back to work.

Uber and Lyft asked Congress to bail out their drivers. Now they can't get enough drivers to come back to work.

Uber and Lyft are seeing surging demand as the US economy reopens. But drivers aren't returning, wary they'll make enough money to be worth the risk.

Uber and Lyft have some good news ahead: Riders in the United States are expected to flock back to the ride-hailing apps soon as COVID-19 cases wane due to increased vaccinations. The bad news is there doesn't seem to be enough drivers yet to pick them up.

In recent weeks, the app companies have been scrambling to rebuild their gig-economy workforce to meet an expected windfall of returning customers. But as Uber and Lyft pull out the stops to appeal to drivers, they're encountering a very different labor market than before.

Drivers dropped off the apps' ridehail services in the last year for many reasons. Many told Insider they were worried about their health, some found freelance work in different industries or for the apps' own delivery networks, others gave up their cars altogether. The chief concern, though, seems to be reliability of income. And with some drivers benefiting from a stronger financial safety net because of federal stimulus packages, the app companies need to overcome skepticism that there's more money in driving than not. Uber's and Lyft's once-assured worker pipeline is no longer as reliable.

Spokespeople for Uber and Lyft declined to comment on their pipelines but highlighted investments they've made throughout the pandemic to support drivers, including a recent driver stimulus, and pointed to data claiming drivers earned more now in many regions than before the pandemic.

Investors seem unconcerned; share prices for Uber, and to a lesser extent Lyft, are riding high in recent months on the expectation they'll be pandemic winners. The companies boast leaner corporate structures and are even talking about becoming profitable in the near future.

But that optimism rests on getting a supply of drivers to meet the demand. Earlier this month Uber announced a $250 million investment in driver stimulus, full of perks and short-term incentives. Drivers have been flooded with offers and hype, saying that people are making $30 an hour or more, including tips. That's twice what some drivers say they normally make – and a huge bump from the doldrums of the pandemic.

But others aren't so sure. One, who works for Uber, got an offer from the company in March that guaranteed he'd make at least $2,100 in a month in fare and tips. But he said he's currently receiving $3,000 a month in federal and state unemployment payments.

"I need $2,400 a month just to break even. It shocked me they'd use that number," he said. The worker, who drives for Uber in the Bay Area, preferred to remain anonymous for fear that speaking out could get him kicked off the app. He's planning on remaining on unemployment until September when the federal supplement runs out.

Economists are quick to point out that most people who receive unemployment benefits typically do not avoid rejoining the workforce. A study from Yale's business school last year found that people who received the initial $600 a week unemployment supplement that was part of the federal government's stimulus package returned to work at similar rates to those who did not receive those benefits.

Indeed, other drivers who have received unemployment benefits say their reasons for remaining off the app are more about COVID worries or issues with their car. But many have expressed concerns that despite the promises from the companies, they're not sure they'll make enough money.

"It's kind of a pride thing, nobody wants to feel like they're leaching off the system," said Erica Mighetto, an Uber and Lyft driver who's been off the platform since last spring. But even now as the offers from the companies are coming on a near daily basis she's still unsure whether it's worth buying insurance for her car again to re-qualify it for service.

Despite the promise of good money from the ride-hailing companies now, "you have to ask how long is it going to last?" Mighetto said.

New obstacles


If increased unemployment benefits continue to be a hurdle for recruiting drivers, the irony, of course, is the app companies partly have themselves to blame.

Last summer, Uber's CEO Dara Khosrowshahi wrote an open letter to President Trump in which he "respectfully and urgently request[ed]" that the company's 1.3 million drivers be included as workers eligible for the economic stimulus. When they were included in the final package, Khosrowshahi made a statement commending the move.

The episode touched on an ongoing controversy over how to classify these drivers. Labor advocates have lobbied hard for them to be classified as employees, and thus eligible for benefits and protections. Meanwhile the companies have advocated for them to remain contract workers, albeit with some benefits.

"I suspect some of the altruism exhibited by gig economy corporations in wanting workers to be included in the stimulus package, part of it was driven by public relations image," said R.A. Farrokhnia, a professor at Columbia Business School.

"But in the grand scheme they're most likely not regretting it. That was the right call to make at the moment."

For drivers, navigating the thicket of different unemployment programs to make sure they received the state or federal benefits has been its own obstacle. Mighetto said she's currently waiting to get over a month's worth of insurance that's been held up.

Other drivers are just hoping to see the promised big fares that Uber and Lyft have been hyping up. Lisa Ditalia, who drives for Uber in the Philadelphia area says she's heard the stories about offers, but hasn't seen anything come her way. She worked throughout the pandemic, even as fares slowed to a trickle, and is worried that her loyalty means she hasn't been eligible for the offers the companies are making to lure drivers back.

"Why don't you take care of the people who took care of you during the pandemic?" Ditalia said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Burnham Reshapes Britain’s Government Around Living Costs, Devolution and Security
Jingye Demands Full Compensation After Britain illegally Nationalized British Steel
Just Another Liar or a Robin Hood? Andy Burnham Pledges Cost-of-Living Help in First Speech as UK Prime Minister
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Police Block Cockroach Janta Party’s March to Parliament as Education Protests Intensify
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Singapore Considers Lower Taxes for Fund Managers as Hong Kong Intensifies Talent Contest
US Retaliates Against Iran After Two American Troops Killed in Jordan
Bank of Asia BVI Enters Court-Supervised Liquidation After Regulators Find It Insolvent
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
Energy Risk, Uneven Growth and the New Geography of Global Capital
The AI Race Enters Its Infrastructure Era
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Andy Burnham Takes Labour Leadership and Prepares to Become Britain’s Seventh Prime Minister in a Decade
Tech Companies Want to Move Computing Off Your Screen and Onto Your Body
White House Teleprompter Operator Earned More Than $100,000 From Bets Linked to the President's Speeches
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Colombia Influencer Dies After Cosmetic Procedure at Unlicensed Bogota Salon
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Canadian Wildfire Crisis Triggers Transnational Air Quality Alerts Ahead of Soccer Finale
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
×