Ride-share companies like Uber and Lyft have been using incentives to make the gig economy more attractive in an attempt to recruit drivers as a shortage of drivers pushes prices up, The Wall Street Journal reported.
Incentives for drivers to return are an attempt to rectify rising fare prices and a lack of drivers in the market, but the labor scarcity isn’t supposed to end soon, the WSJ reported. Long term solutions might be needed in the gig-economy as a result.
“This is a moment of deep introspection and reflection for a company like ours to pause and say, ‘How do we make the proposition for drivers more attractive longer term?” Carrol Chang, Uber’s chief of driver operations for the U.S. and Canada told the WSJ. “It is absolutely a reckoning.”Read More