‘Hopeless and scared’: Uber and Lyft drivers face financial ruin after coronavirus

Nina2

Well-Known Member

As the new coronavirus locks down cities across the world, Uber (UBER) and Lyft (LYFT) drivers face the possibility of financial ruin as more people remain in their homes to rein in the illness.

According to an Edison Trends study released Wednesday, Uber and Lyft rider spending in the two weeks prior to March 15 collapsed by more than 20% in California, and a whopping 40% in Washington State, two of the early hotspots in the U.S. coronavirus outbreak. In the week prior to March 15, Uber ridership in Manhattan alone fell by more than 24%. And those numbers are unlikely to recover anytime soon.

“It is a financial crisis for a lot of people,” says New York-based Uber driver Isjad C., who along with other drivers, didn’t want his full name used out of fear of repercussions from Uber or Lyft.

Six Uber and Lyft drivers Yahoo Finance spoke with in New York and California said they’ve seen a steep drop-off in the number of passengers looking for rides. With earnings so low, they barely cover fuel costs.

“A lot of Uber drivers I meet, they are pretty much, you know, hopeless and scared that they are going to run out of business really soon,” Isjad C. said.

William J., a driver out of the Los Angeles area, said he’s seen fewer riders, as well. The decrease has been so dramatic that he was unsure how long he could continue to as an Uber driver. The sharp increase in people working from home is easy to see on the roads, he explained. The heavy traffic volume on the highways around L.A., he said, has cut what is normally a two-hour ride to just 40 minutes.


With fewer users seeking rides, some drivers are moving to Uber Eats, or other delivery services to make up for the lost pay, according to at least one driver who spoke to Yahoo Finance. But two drivers said that the pay can’t compare to a standard Uber drive.

According to JPMorgan (JPM) analyst Ronald Josey, Uber said on a recent conference call that it has seen a 10-fold increase in restaurants signing up for Uber Eats since last Thursday.


Outside of the slowdown in ridership, drivers also have to contend with their personal safety, as they continue to ferry passengers who might have the virus themselves. At least one driver told Yahoo Finance he’s concerned he’ll catch the virus from the passengers he picks up while on the road, but can’t afford to turn down rides.


Further impacting drivers is the fact that both Uber and Lyft, on March 17, announced they have suspended their carpooling options in both the U.S. and Canada for the foreseeable future.
 

doyousensehumor

Well-Known Member
Despite the sudden, near total elimination of the tourism, travel, resturant, and entertainment industries, independent contractors are blessed.
Still are runs out there.
Still money to be made.
MANY workers have it WORSE than us.
MANY other people with CAREERS will soon be laid off.

It is NOT just us that are struggling right now, or soon to be.

In this game you have to adapt quickly. Obvoius now, you can't drive for one app, or only have one option.

Wait to see when unemployment hits 20%. Independent contractor on-demand work will really SHINE, when companies are laying off, not hiring. Most I/C positions take all applicants. U/L are not the only options.

Wondering how many of you went through the last resession... 🤔
 
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TheDevilisaParttimer

Well-Known Member
Despite the sudden, near total elimination of the tourism, travel, resturant, and entertainment industries, independent contractors are blessed.
Still are runs out there.
Still money to be made.
MANY workers have it WORSE than us.
MANY other people with CAREERS will soon be laid off.

It is NOT just us that are struggling right now, or soon to be.

In this game you have to adapt quickly. Obvoius now, you can't drive for one app, or only have one option.

Wait to see when unemployment hits 20%. Independent contractor on-demand work will really SHINE, when companies are laying off, not hiring. Most I/C positions take all applicants.

Wondering how many of you went through the last resession... 🤔
Actually gig work will not shine it will become much worse. Be ready for 1 ping per hour if unemployment even hits 6%.

If unemployment hits 20% be ready for maybe 2 pings per day if that. Not only will rideshare number of ants increase exponentially but paying pax will decrease too exponentially.
 

doyousensehumor

Well-Known Member
Actually gig work will not shine it will become much worse. Be ready for 1 ping per hour if unemployment even hits 6%.
1 ping per hour is better than 0 pings per hour.
How resilient do you think your competition (the other drivers) is going to be? New drivers lack experience. The majority of drivers lack skill. It doesn't take much to outperform them. Driving solely for uber X may not cut it anymore.

Even if you are looking for a way out, as always, you can still do this while looking for a job.

YMMV, some markets really do suck more than others....
 

TheDevilisaParttimer

Well-Known Member
1 ping per hour is better than 0 pings per hour.
How resilient do you think your competition (the other drivers) is going to be? New drivers lack experience. The majority of drivers lack skill. It doesn't take much to outperform them. Driving solely for uber X may not cut it anymore.

Even if you are looking for a way out, as always, you can still do this while looking for a job.

YMMV, some markets really do suck more than others....
I'm gonna be frank driving rideshare isn't a skill. Having a real job is better than 1 or 0 pings per hour during a recession.
 

doyousensehumor

Well-Known Member
If unemployment hits 20% be ready for maybe 2 pings per day if that. Not only will rideshare number of ants increase exponentially but paying pax will decrease too
Most on-demand stuff fades away. If you limit yourself to only uber x, you already lost. Have to be driving for more than one company, and always have eyes peeled for a better opportunity.
 

TheDevilisaParttimer

Well-Known Member
Most on-demand stuff fades away. If you limit yourself to only uber x, you already lost. Have to be driving for more than one company, and always have eyes peeled for a better opportunity.
If you limit yourself to rideshare PERIOD you lost. A rideshare driver has the same skill set as a papajohns delivery driver, no more no less.

Being on a higher tier than X doesnt change this. In a recession there will be plenty of people with nice cars that qualify for select, XL, Comfort and every tier to swamp them all.
 

doyousensehumor

Well-Known Member
I'm gonna be frank driving rideshare isn't a skill. Having a real job is better than 1 or 0 pings per hour during a recession.
You are twisting my words around.
I said most rideshare drivers aren't skilled myself.

No kidding...if you are able to get a job in a recession in the first place... that's my whole point, you can limp on I/C until then.
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If you limit yourself to rideshare PERIOD you lost. A rideshare driver has the same skill set as a papajohns delivery driver, no more no less.

Being on a higher tier than X doesnt change this. In a recession there will be plenty of people with nice cars that qualify for select, XL, Comfort and every tier to swamp them all.
You're preaching to the choir. Trust me, I can handle myself.

For the last 15 years now, I have been selfemployeed or I/C. I am also a mechanic. I do have several options. None of which depend on being someone else's employee. And that by choice.
 
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TheDevilisaParttimer

Well-Known Member
You are twisting my words around.
I said most rideshare drivers aren't skilled myself.

No kidding...if you are able to get a job in a recession in the first place... that's my whole point, you can limp on I/C until then.
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You're preaching to the choir. Trust me, I can handle myself.

For the last 15 years now, I have been selfemployeed or I/C. I am also a mechanic. I do have several options. None of which depend on being someone else's employee. And that by choice.
That's my entire point you are a mechanic. In a recession rather if jobs are hiring or not you can fix cars. You have a fall back skill.

I'm not trying to go after you personally but a lot of drivers are really dumb enough to believe only 4% of the population know how to make money doing rideshare. :rollseyes:

Where in truth most people just move on to something better. When that something better is gone or they need some extra that Uber app is getting cranked right back up.

As far as myself my industry gets substantially more busy during a recession. We hire 100 in hope 5 make it out of training, 2 makes the year, 1 goes >3 years.
 
Uber/Lyft should give long term drivers some financial assistance. Like uber did awhile back with bonuses , some got $500
Agreed. Dara is sitting on $200-300 million. Why does anybody need that much money? And while I’m not suggesting he break open his piggy bank to bail out the drivers who built this company btw, he could at the very least decrease the percentage Uber takes from each ride, bring back surge multipliers and offer quest Incentives that aren’t insulting. Sure there aren’t a lot of rides now, but he could have done that before things got worse, and he can do it once the pandemic is over and people start to go back to work.
 

tohunt4me

Well-Known Member

As the new coronavirus locks down cities across the world, Uber (UBER) and Lyft (LYFT) drivers face the possibility of financial ruin as more people remain in their homes to rein in the illness.

According to an Edison Trends study released Wednesday, Uber and Lyft rider spending in the two weeks prior to March 15 collapsed by more than 20% in California, and a whopping 40% in Washington State, two of the early hotspots in the U.S. coronavirus outbreak. In the week prior to March 15, Uber ridership in Manhattan alone fell by more than 24%. And those numbers are unlikely to recover anytime soon.

“It is a financial crisis for a lot of people,” says New York-based Uber driver Isjad C., who along with other drivers, didn’t want his full name used out of fear of repercussions from Uber or Lyft.

Six Uber and Lyft drivers Yahoo Finance spoke with in New York and California said they’ve seen a steep drop-off in the number of passengers looking for rides. With earnings so low, they barely cover fuel costs.

“A lot of Uber drivers I meet, they are pretty much, you know, hopeless and scared that they are going to run out of business really soon,” Isjad C. said.

William J., a driver out of the Los Angeles area, said he’s seen fewer riders, as well. The decrease has been so dramatic that he was unsure how long he could continue to as an Uber driver. The sharp increase in people working from home is easy to see on the roads, he explained. The heavy traffic volume on the highways around L.A., he said, has cut what is normally a two-hour ride to just 40 minutes.


With fewer users seeking rides, some drivers are moving to Uber Eats, or other delivery services to make up for the lost pay, according to at least one driver who spoke to Yahoo Finance. But two drivers said that the pay can’t compare to a standard Uber drive.

According to JPMorgan (JPM) analyst Ronald Josey, Uber said on a recent conference call that it has seen a 10-fold increase in restaurants signing up for Uber Eats since last Thursday.


Outside of the slowdown in ridership, drivers also have to contend with their personal safety, as they continue to ferry passengers who might have the virus themselves. At least one driver told Yahoo Finance he’s concerned he’ll catch the virus from the passengers he picks up while on the road, but can’t afford to turn down rides.


Further impacting drivers is the fact that both Uber and Lyft, on March 17, announced they have suspended their carpooling options in both the U.S. and Canada for the foreseeable future.
UBER HAS THE UNIQUE ABILITY TO ADAPT & OERCOME THESE EXTREME CIRCUMSTANCES .

FOOD DELIVERIES !

HOUSEHOLD SUPPLY DELIVERIES.

PHARMACY DELIVERIES.

UBER HAS THE INFRASTRUCTURE TO FILL THSES NEEDS ALMOST IMMEDIATELY.

STEP UP DARA !
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I DELIVER PIZZA.
WE HAVE NOT SLOWED DOWN ONE BIT.

NO ONE CAN EAT PIZZA EVERY DAY.

UBER NEEDS TO GET IN THERE.
 

dnlbaboof

Well-Known Member
love our politicians, shut down the economy, when India and Japan have much more pop density and have had no epidemic, no lockdowns less than 50 deaths in Japan.

They'll probably start a war with Iran on top of all this.
 

TheDevilisaParttimer

Well-Known Member
Yeah it sucks. Pretty soon I am going to park the car and stop driving for a month at least. I just do not want to sit in the house for a month :eek::eek:

While I do this full time, I have other income streams, so I am not screwed. But I feel the pain of my RS brothers and sisters.
Yea rideshare is a godsend for people with multiple incomes but somewhat of a curse for people that depend on it solely.

For example I see a few 20 something year olds on here that believe that they will do rideshare forever and all that is needed is a union.

This sort of thinking will stunt their growth in the work force similar to the McDonald's manager that makes $12/hour.

They feel like they cant take a pay cut to start over with something that will teach them skills and leads to higher pay yet $12/hour is poverty pay.
 
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