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With the accelerating cost of ...The number of people driving for Uber has increased to almost five million, as the concern about the rising cost of living pushed people to new ways to earn money.
Uber boss Dara Khosrowshahi said that the all-time highest number of people are making food deliveries or picking up passengers for the company, 31% more than last year. Uber has been struggling with a driver shortage since the pandemic, which has led to longer waiting times for customers. The rising price of petrol has also made it harder to earn money on the platform. But according to Mr. Khosrowshahi, despite rising costs, people’s interest in driving for the company was accelerating.
Uber has always been criticized for the treatment of its drivers. Last year the UK Supreme Court ruled that the company must count them as workers. Still, in many countries, including the US, Uber classifies drivers as self-employed contractors, which means they are not entitled to holiday pay or minimum wage benefits.
According to uber, the higher demand during the pandemic in 2020 is also attracting drivers back to the company. The rise pushed gross bookings up 33% to $29.1bn. Despite the gains, uber also lost $2.6bn; more than half was due to a decline in the value of its stakes in overseas companies such as Grab, Zomato, and Aurora.