Brief: Drivers are leaving Uber at an alarming rate. It’s working on a fix.

Photo credit: Mark Warner

• Uber executives have been alarmed recently by the accelerating rate at which drivers are leaving the service. Internal data shows that only 25 percent of drivers who sign up with Uber and pass inspections stay on a year later.
• Uber is looking at ways to fix this. It’s inclined towards allowing riders to tip drivers in-app – something it was against doing and which its US rival Lyft offers. It’s also considering paying drivers more if they travel long distances to pick up passengers who make short rides.
• Drivers have been feeling that they’ve been doing more work for less money, with Uber’s cutbacks in bonuses contributing to that sentiment.
• However, Uber finds itself needing to keep its cashflow healthy, so it cannot overspend on bonuses. The ride-hailing giant saw a net revenue of US$6.5 billion in 2016, and an adjusted net loss of US$2.8 billion.

Source: The Information (paywall)