Axios – 7:42 PM PT – Uber’s rideshare business is now making money from drivers who have little or no driving experience, the company’s CFO says.
The CEO of Uber’s global business said in a blog post that drivers, who often have little to no experience in the industry, have been driving for Uber for two decades.
He said the drivers, a mix of college graduates and low-skilled immigrants, are part of a larger, largely female, demographic that is more likely to be underrepresented in Uber’s overall workforce.
He did not specify how much Uber’s revenue from the service was derived from drivers, but said the company expects to see “significant” growth in revenue this year.
He noted that Uber’s earnings are currently below analysts’ estimates.
Uber did not respond to a request for comment.
In a blogpost this week, Uber said that it had been able to increase its driver base from 2 million in 2011 to 3.4 million in 2018 and 3.8 million in 2019, while its business grew by 15% to $2.3 billion.
But drivers, in general, are now being pushed out of Uber because of changes in Uber drivers’ insurance policies and other challenges, according to Uber’s chief financial officer.
Uber drivers can earn up to $70,000 per year in earnings, but their pay scales are set lower than that of the drivers Uber hires to operate its service.
Uber says it has hired thousands of new drivers over the last few years.
In 2019, Uber plans to add nearly 6,000 drivers to its fleet.