Crime, Fuel Costs Stymie Ride-Hail Drivers’ Profits

rideshare driver

Carjackings are on the rise in Chicago and that combined with the rise in fuel costs has ride-hailing drivers less enthusiastic about taking to the road.

As Bloomberg reported Wednesday (Aug. 3), there were more than 1,800 carjackings in Chicago in 2021, the highest number in 20 years and up from 602 in 2019, according to the Chicago Police Department, which expanded its carjacking task force in 2021. The department saw 844 carjackings through July 6 this year, the report said.

The carjacking numbers across the U.S. are up too, with 124 rideshare or delivery drivers becoming victims of carjackings or attempted carjackings in 2020 and the first half of 2021, the news outlet said, citing The Markup. More than 50 app-based drivers have been killed on the job since 2017, according to advocacy group Gig Workers Rising.

A proposed city ordinance in Chicago calls for increased protections for ride-hailing drivers, including requiring riders to verify their identities and funds for dashboard cameras, protective barriers and other safety equipment, the report said.

The bill by Alderman Roderick Sawyer would increase drivers’ wages and let them appeal deactivations to improve working conditions. Chicago would follow Washington state, Seattle and New York City with regulations focused on driver safety and improved working conditions.

Related: Uber’s Delivery Gains Place Platform Squarely in Amazon’s ‘Last Mile’ Crosshairs

Amazon announced Monday (Aug. 1) that it has same-day delivery in 10 U.S. cities for Prime members and Uber Chief Financial Officer Nelson Chai said Tuesday (Aug. 2) during the company’s second-quarter earnings conference call that the company had seen “a real uptick on the delivery side … and the cost per transaction is just improving.”

Uber’s earnings results show that gross bookings were up 33% year on year overall, with the Delivery segment showing 12% growth in its gross bookings to $13.9 billion, leading to a 43% gain in its revenues from that unit, to $2.7 billion, as measured in constant currency.

Uber Freight grew to $1.8 billion, up from $348 million last year, though it must be noted the most recent results show the impact of the Transplace acquisition, which closed late last year.