Benzinga | Nov 12, 2021 06:57AM EST

Uber CEO Reaches London To Resolve Driver Crisis

* Uber Technologies (NYSE:UBER) CEO Dara Khosrowshahi flew into London for 24 hours earlier this week to tackle the company's driver crisis, Financial Times reports.

* Uber faces a crisis of 20,000 drivers ahead of the peak Christmas season.

* In his first international trip since the beginning of the coronavirus pandemic, Khosrowshahi said to the drivers at Soho House for Uber drivers and members of the GMB trade union, "We need more of you, so tell your friends!"

* Recently Uber said it would raise driver pay in London by 10%. In October, Uber agreed to hand out bonuses of ?500 for drivers who refer friends to its platform.

* Khosrowshahi admitted that the driver crisis was a nationwide issue. Some drivers may have quit during the pandemic, while others have blamed the fuel crisis and the spike in cars' costs, making Uber increasingly uneconomical.

* "Demand normally rises at 10%-15% every year, but it's growing much more quickly after the pandemic," Khosrowshahi said.

* Uber said demand had risen 20% in London, 30% in Birmingham and Manchester, and 40% in Nottingham.

* Uber currently has 10,000 drivers on its books who have not been active in the past few months, many of whom may have switched to food or package deliveries during the pandemic and have not returned to driving.

* Uber said it could "fix half the problem on supply overnight in theory" if they could tempt these riders to reactivate.

* Khosrowshahi also met the London mayor Sadiq Khan for the first time in an encounter brokered by the GMB union.

* Price Action: UBER shares traded higher by 0.28% at $43.40 premarket on the last check Friday.