In a time where many businesses are seeing stock prices plummet, and revenues at an all time low, ridesharing companies such as Lyft Inc. and Uber have seen a surprising increase in revenue from the coronavirus.
Although the increase in profits may seem like a good thing, it leads to the question of safety for the drivers, as a study published on March 13, 2020, from Gallup Polls show that more than half of ride-hailing drivers said they were now “very concerned” about reduced earnings as a result of the virus and 41% said they’ve modified their driving strategy as a result. These changes include reducing hours, refusing airport rides and halting driving entirely.
The survey of 871 drivers in the U.S. from March 1 to March 4 compared data with similar four-day periods in 2020 and was conducted by driver productivity app Gridwise.
Many of these drivers, in the lower bracket of the income earners, are “doing what they can to continue to earn and provide for their families”(Brandon Sellers, an economics professor at the University of Pittsburgh). Now, approximately 90% of all drivers are wiping down their cars with disinfectant every ride, and then asking the clients to use hand sanitizer as they walk in. Not only that, but many are starting to use face masks as well. What this data tells us is that drivers are afraid.
The fear among drivers comes just as more passengers seem to be seeking rides or ordering food delivery in an effort to avoid crowds. But for those drivers willing to take the risk, wages increased 6% during the study period, according to Gridwise, due to fewer drivers competing for rides and more surge pricing, which increases prices during peak demand.
During a separate conference the following day, Uber Chief Executive Officer Dara Khosrowshahi suggested an increase in food orders could offset what he acknowledged was a modest, but non-material dip, in airport rides. He reiterated last month’s pledge that Uber would be profitable by year’s end, adding that he was “more confident” now than before fears of the virus had taken hold.
The Gridwise survey also found that 18% of drivers second-guessed whether or not they would pick up passengers of “Asian Descent” The situation remains fluid. New reports of outbreaks and government responses, from California’s declared state of emergency and lockdowns in parts of Washington state, could change rider and driver behavior.
Uber and Lyft flagged the virus as a risk factor in their annual filings with the Securities and Exchange Commission. Lyft noted it had already disrupted supply chains for producing bikes and electric scooters, while Uber said the fear of such a pandemic could have an impact. On Thursday, Lyft became the latest company to be affected by the epidemic after an employee was confirmed to have been in contact with someone exposed to Covid-19. The company closed its San Francisco office for deep cleaning and ordered employees to work from home for a week.
What this new virus shows is the continued perseverance of those working in jobs, as well as how societal perceptions on race can play a large factor in the COVID-19 outbreak. Next time you go outside, take the time to be considerate of your surroundings. Wash your hands, use hand sanitizer, and be considerate of others!