: Uber, Lyft and Instacart drivers fear losing out if a recession fuels influx of new gig workers

by | Jan 5, 2023 | Stock Market

If a possible recession and higher unemployment this year lead to an influx of new gig workers, as some analysts are predicting, existing ride-hailing drivers and delivery workers worry that will mean less work for them. More competition from other workers will exacerbate the less-than-ideal working conditions and low wages that app-based gig workers already face, some workers told MarketWatch this week.

“Of course, that means fewer orders and batches available for everybody,” said Melissa, a gig worker who shops for Shipt and Instacart in Charleston, S.C., and asked that her last name not be used. But she added that she “completely understands” people wanting to make up for any lost income. “I don’t blame them personally, because they’re just trying to pay their bills,” Melissa said. “But they probably won’t make much money, and the people who are already doing it will make less money.” In a note published this week, Bank of America analysts estimated that as many as 450,000 new drivers could flock to Uber Technologies Inc.
UBER,
-1.39%
and Lyft Inc.
LYFT,
-1.13%
this year, and that 600,000 new couriers could give DoorDash Inc. and Uber Eats a try. The analysts said an increase in labor supply could offset possible declines in the companies’ r …

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