Uber CEO is “not comfortable” with driver care and pricing
Dara Khosrowshahi, CEO of Uber Technologies, in front of the New York Stock Exchange ahead of the company’s IPO on May 10, 2019.
Dara Khosrowshahi, CEO of Uber, said Tuesday afternoon that while the supply of drivers is getting better the more people are vaccinated against the coronavirus, the demand for rides exceeds demand.
“ETAs are higher than we want, prices have risen as we haven’t seen driver supply keep pace with growing demand in the US,” said Khosrowshahi at the JP Morgan technology, media and communications conference.
“We are still working on the offer position. It will definitely get better, but we are not happy with the ETAs and price levels we see and we will be investing to improve them,” he added.
With Americans getting vaccinated and governments easing pandemic restrictions, people are ready to travel and leave their homes to turn to carpooling agencies. However, Uber and Lyft are still facing a slow driver return. If companies can’t hire enough drivers to meet demand, they could face disgruntled customers who have to pay more money and wait longer.
Uber said last month it would spend $ 250 million on a one-time incentive to get drivers back on the road. In his call for earnings for the first quarter earlier this month, Khosrowshahi said they would “continue to lean on targeted incentives for new and existing drivers.”
Lyft also said earlier this month that it would use its cut from increased prices to fund investments to bring back more drivers. To create more incentive, Lyft President John Zimmer said at the same conference Monday afternoon that the company would be “smart”.
“We are very confident and have already seen significant improvements,” said Zimmer.
Both Uber and Lyft announced this month that they expect supply and demand issues to weigh on business in the second quarter and will rebound in the third quarter.
“We are confident that we can be executed,” said Khosrowshahi.
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