Ride-Hailing Companies Get Some Drivers’ Ed

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Ride-Hailing Companies Get Some Drivers’ Ed
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If a recent survey of DoorDash drivers is any indication of how the gig economy is faring with the Delta variant spreading, then investors should keep an eye on Uber WSJWhatsNow

—at least on the basis of adjusted earnings before interest, taxes, depreciation and amortization—but investors are unmoved. Shares of the ride-hailer are down more than 8% since the company reported second-quarter earnings on Aug. 3. Despite reporting deepening losses on a sequential basis in the same period, Uber has seen its shares fare better, little changed from where they closed Aug. 4 before the company’s own quarterly report.

There may be limits to how much love ride-hailers’ money can buy. Food-delivery platforms haven’t had the same issues as their gig-economy counterparts. DoorDash said the second quarter brought more first-time drivers to its platform than any previous quarter, noting that over three million people “dashed” in the period. That comes despite the fact that ride-hailers have historically made more than food-delivery drivers and recently have been banking record pay in many areas.of over 4,000 U.S.

Not all gig-economy work is equally appealing to all drivers. Some of it might never be. According to the survey, 96% of DoorDash’s drivers don’t currently drive with ride-share platforms, while 82% said they have never done so and don’t plan to. Most cited safety as a concern—one unlikely to abate as the Delta variant continues to spread. Nearly three-quarters of those drivers said they didn’t want to share their vehicle, a staple of ride-hailing that won’t ever go away.

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