Beautiful Virgin Islands

Friday, Mar 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
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
×