Uber takes back control, Apple eyes cars, and Instacart introduces credit cards. LegalRideshare breaks it down.
Riders are waiting (or walking), Instacart may have an Instacard, Apple is looking at cars, and, ironically, Uber gives – and takes away – money. It’s all here in This Week in Rideshare!
After Uber allowed California drivers to set their own prices, they’ve decided to revoke that right. Business Insider explains:
Too many drivers took advantage of the control Uber gave them, picking the most profitable rides while declining others, which made it harder for customers to get rides and hurt Uber’s business, the company said. The Chronicle reported that one-third of drivers turned down 80% of rides.
Industry observers said the move is hardly surprising, but it undermines Uber’s claim that the changes were ever about anything more than dodging regulation.
As tech companies become a key part of the auto industry, cars are looking more like giant computers on wheels. To understand why a tech giant like Apple might want to make a car, we built one out of iPhone parts.
As the economy begins to open back up riders are facing a new problem: not enough drivers. Ars Technica explains:
Around this time last year, Uber and Lyft saw demand plunge for their flagship ride-hailing services as fear of the coronavirus kept most people at home. By May 2020, Uber’s ride bookings had plunged 80 percent from their level a year earlier.
But now, as people get vaccinated and some states are relaxing public health restrictions, demand for rides is soaring. And Uber and Lyft are struggling to recruit enough drivers to meet their needs.
As the demand for drivers continues, Uber has a message: “higher pay”. Yahoo! explains:
Uber Technologies Inc said U.S. drivers on their ride-hail platforms should take advantage of pay hikes as trip demand temporarily outstrips driver supply, but warned the windfall will not last.
Uber’s Vice President of U.S. & Canada Mobility, Dennis Cinelli, in a blog post told drivers to take advantage of higher earnings before pay returns to pre-COVID-19 levels as more drivers return to the platform.
It looks like Instacart and Doordash are eyeing your wallet. Business Insider explains:
Instacart: The firm will be working with JPMorgan Chase to issue a credit card that will reportedly let customers earn 5% cash back on Instacart purchases. The card is said to launch next year.
DoorDash: The company is rumored to have several bidders lined up for its rewards credit card, including JPMorgan Chase, but is reviewing its options before making a decision in the next few weeks.