👉 Background: Uber, the ride-hailing giant, took a major hit during the pandemic when people were stuck indoors. And if they weren’t stuck indoors, they were scared to travel in a car with an unknown driver.

👉 What happened: Now, seems like Uber is bouncing back after it saw a 29% increase in revenue in their most recent quarter - generating $8.8 billion in revenue in just 3 months. A large chunk of its revenue growth actually came from its OG ride-hailing business.

👉 What else: Uber's secret sauce? During the pandemic, they were able to gain more drivers due to their global scale thanks to a juicy incentive program. And it's no surprise that Uber's shares rose by nearly 12% .

What's the key learning?

💡In a marketplace business, incentives can be a key factor in driving growth and retention. During the pandemic, Uber focused on financial incentives to bring drivers back to its platform. And although this was expensive at the time, the strategy seems to have paid off.

💡Uber’s US and Canadian ride-hailing businesses are now growing at breakneck speed, with trips up 40% from a year ago. Compare that to Uber’s main competitor in North America, Lyft, who didn't invest as heavily in getting drivers back. This resulted in fewer drivers and higher prices due to the low supply.

💡By offering incentives, Uber has managed to boost their growth and strengthen their brand in a competitive market.