Lyft is rolling out a pay bump for some of their drivers, while at the same time, competitor Uber is boasting an annual profit.
Also, this week, DoorDash is boasting big giveaways during the Super Bowl, namely, giving away everything that is advertised during the game.
Join RSG Contributor Paula Lemar as she breaks down the top headlines in this week’s rideshare news.
Lyft Says It’s Going To Give Some Of Its Drivers A Pay Bump
Topic Originally Appeared On Business Insider
Summary
Some Lyft drivers who have struggled to make ends meet may soon receive some relief.
Lyft announced Tuesday it will guarantee weekly earnings for drivers at 70% or more of what riders paid after accounting for external fees such as local taxes and government-mandated extra insurance.
The decision was intended to attract more drivers to its platform and increase transparency about how drivers are paid, Lyft said.
Lyft noted that last year, about 15% of drivers nationwide earned, on average, less than 70% of what riders paid after accounting for external fees.
About two-thirds of drivers said they were paid less than 70% of what passengers paid at least once. Lyft reported that drivers, on average, took home 88% of rider payments after external fees.
My Take
RSG’s Sergio Avedian was quoted in the article concerning those who take home more than 70%.
He said, “That 88% hold rate could be lowered slowly to 70%,” which would not do those drivers any favors.
So, will some drivers suffer while others start to thrive?
Get his full insight in the latest Show Me The Money Club video with Sergio and Chris:
As we know from past experiences, anytime one of these platforms posts something boasting about driver benefits, we have to take it with a grain of salt and dissect the new rollouts to see what the fine print says.
Usually, when we’re given an inch, there’s a mile taken from some other facet. Their announcement stated that drivers will earn 70% of rider fares after fees, guaranteed; drivers will see where every dollar of riders’ fares go; drivers will earn more for waiting during scheduled rides, and more.
For an even more in-depth look into Sergio’s views on the news, check out his article Lyft’s Early 2024 Driver Announcements.
In A First For Uber Since Becoming A Public Company, An Annual Profit.
Topic Originally Appeared On ABC News
Summary
Uber posted its first full-year profit since going public in 2019, and its stock hit an all-time high Wednesday as strong bookings in the final quarter of the year pushed profit and revenue beyond Wall Street’s expectations.
Like its final year as a private company, the last time Uber turned a profit, it got a huge tailwind from investments that helped fuel profits, such as $1 billion in 2023. The difference is that Uber has started making money from operations.
“2023 was an inflection point for Uber,” CEO Dara Khosrowshahi said in prepared remarks.
Uber and other ride-share companies struggled through the COVID-19 pandemic. The company, whose stock recently joined the S&P 500 index, saw its ride-hailing business stymied as government lockdowns kept millions at home.
My Take
Now that Uber is profitable, will they start to pivot like Lyft is doing and start to guarantee earnings for drivers? Will they take some of their profits and give their drivers better pay instead of the pay cuts drivers are used to?
The success of the company is built on the backs of drivers all over the country and world.
I know that’s all wishful thinking because once profitable, the goal becomes beating the previous year’s numbers. We see this all the time with corporations and companies across the nation. It’s never good enough to match what you did the previous year. Everyone wants to see more, more, more.
DoorDash’s Super Bowl Ad Is A Sweepstakes Giving Away Everything Advertised During The Game — From A BMW To Mayo
Topic Originally Appeared On CBS News
Summary
DoorDash’s Super Bowl ad is making a singularly large play this year, with its 30-second spot dangling a sweepstakes that offers one viewer the chance to win everything — yes, everything, from a 30-pound tub of mayonnaise to a BMW vehicle — that is advertised during the championship game.
That’s no small order, given that the Super Bowl is advertising’s biggest annual event, with about 60 to 70 advertisers vying to impress a television audience of more than 100 million viewers. Advertisers this year are paying $7 million for 30 seconds of air time during the championship game, according to trade publication Advertising Age.
DoorDash’s sweepstakes approach is striking because the delivery service is parlaying off of other marketers’ messages, promising viewers that they could have a chance to win everything that’s advertised during the February 11 game, which will feature the defending champion Kansas City Chiefs taking on the San Francisco 49ers.
So far, the advertiser list includes companies such as BMW, Doritos, Dove, Kia, M&M, Popeyes and Volkswagen.
My Take
Wow! DoorDash is certainly making people notice them. If I hadn’t already heard of DoorDash, I would definitely be looking into them after the announcement that they are giving away everything that’s advertised during the Super Bowl game. That’s just unheard of; unreal.
Keep in mind Dashers are eligible to participate in the sweepstakes. So, be sure to enter it if you want to win a lot of stuff. In order to enter, you need to watch the game and, more importantly, the commercials.
Watch for the DoorDash commercial with a promo code and enter that code into the sweepstakes website.
Zum Fast-Tracks Revolution To Modernize School Transportation With $140M Funding Round Led by GIC
Topic Originally Appeared On Ride Zum
Summary
Zūm, the leading provider of modern student transportation, announced a $140 million Series E funding round. This new funding round was led by GIC, a leading global investment firm.
Climate Investment, a decarbonization investor, and existing investors, including Sequoia and SoftBank Vision Fund 2, also participated in the round, elevating the company’s valuation to $1.3 billion—a significant increase from its previous series D raise in Oct 2021.
This round brings Zum’s total fundraising to $350 million.
Zum has transformed the outdated student transportation industry, previously riddled with inefficiencies and a lack of transparency, through its innovative approach to digitization and electrification.
Zum has unified parents, students, school administrators, and drivers on a single personalized end-to-end technology platform, enabling never-before-achieved levels of visibility and data-backed accountability.
This has ushered in a new era of increased safety, reliability, and sustainability for the school districts it serves across the nation in cities like San Francisco, Los Angeles, Oakland, Seattle, Chicago, and Nashville, among others.
It is also leading the industry forward with the shift to EV school buses in major metropolitan school districts.
My Take
Want to learn more about Zum? Check out our article Zum Driver Review – Eligibility, Pay, Pros, Cons & More.
$140M is an impressive sum to raise for funding. As the article states, “Zum is on a mission to revolutionize student transportation…” which is an admirable mission.
To become a Zumer (driver for Zum), you have to meet more criteria than the standard rideshare driver positions, making it a safer option for kids.
Providing more alternatives for kids and students to get to and from school and events is a great thing.
I’ve seen young kids in my area taking public transportation by themselves through downtown routes that aren’t necessarily the safest areas for anyone to go, let alone unaccompanied minors.
I love seeing safe options that help fill a need.
Free Event for Gig Workers in Oakland
Want to see Sergio and other gig work experts talk about the gig economy? Sign up and attend for free. But do it soon as there’s only 150 capacity for the event. The reception afterward is sure to be hit with free drinks and food.
Sergio would love to meet Bay Area drivers in person at the event.
Uber’s CEO Confirms ‘The Taylor Swift Effect’ Is Very Real
Topic Originally Appeared On Business Insider
Summary
Yes, “the Taylor Swift effect” is real.
Just ask Uber’s CEO.
“Uber definitely ups its game for Taylor when she comes to town,” Uber CEO Dara Khosrowshahi said in a Wednesday interview on CNBC’s “Squawk Box.”
Khosrowshahi said that not only do local Uber teams plan specifically for a higher volume of people calling for a ride during the concerts, but that extends to the surrounding hotels and areas as well.
My Take
This really doesn’t surprise me. When you put someone famous in a place, people will flock to them. It kind of reminds me of the Weird Al effect, where whenever Weird Al records a spoof of a song, the sales of the original song tend to spike as well.
Let’s all help each other help each other, right?
RSG in the News This Week
Read more trending topics in the news this week:
Must Listen Or Watch RSG Content
Here are this week’s featured podcast episode and YouTube videos:
- RSG252: Interview with Lyft CEO David Risher on New Driver Benefits
- United We Stand – Divided We Fall! 2024 Is The Year Of Change!
- Uber And Lyft Are BAD For The Environment! Does It Matter To Drivers?
- Lyft Announces NEW BENEFITS For Drivers
- Make sure you Subscribe so you don’t miss out on future conversations and interviews!
