Details of a Strong March for Uber
While no specific figure was released, the rideshare tech company did announce that March saw a record number of gross bookings as demand has surged amid vaccination efforts. What is known about this boost in the mobility business is that the annualized run rate of the $30 billion tallied in March was the best since March of the previous year before nationwide shutdowns to travel and transportation took place. The annualized run rate of $30 billion represents a 9% jump compared to the run rate just one month prior, marking a significant boost in overall ride demand from the app.
Another major point of success for Uber has been the delivery portion of the business. The tech company saw a massive rise in popularity for the Uber Eats delivery app, especially with many restaurants closed for indoor and even outdoor dining. In March, the delivery business reached an annualized run rate of $52 billion. This figure provides significant insight into how large the food delivery portion of the rideshare company has gotten. In fact, the annualized run rate is more than double where it was in comparison to the same month last year.
With demand on both sides of the business growing significantly, Uber has also been making other plans in order to further support its massive network of drivers around the world.
How Uber Has Responded to the Pandemic
Economic prospects for the tech company are finally beginning to trend upward after a year of heavy losses. As a result, the rideshare business is also finding ways to support its drivers, who have been struggling as well with lowered demand over the past several months. Uber announced last week that the rideshare company had created a $250 million driver stimulus package to support the many workers across the globe.
The exact details of how that stimulus will be exactly spent are still not available, though a large portion of it will be focused on incentives and guarantees meant to bring more drivers back to the app in order to meet the growing demand. A portion of the money will also be going toward bonuses for drivers, though how much exactly or who amongst the drivers will receive it remains unclear.
In a blog post announcing the $250 million driver stimulus package, the rideshare app company said, “We want drivers to take advantage of higher earnings now because this is likely a temporary situation. As the recovery continues, we expect more drivers will be hitting the road, which means that over time earnings will come back to pre-Covid levels.”
The company would go on to later add, “We hope drivers new and old will take advantage of this opportunity over the next few months and join us as cities get moving again.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.