Driver shortage, looming regulation cloud Uber, Lyft recovery

FILE PHOTO: A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, U.S., May 13, 2020. REUTERS/Mike Blake

(Reuters) - As U.S. customers gradually hail more rides after a year of pandemic restrictions, Uber Technologies Inc's and Lyft Inc's recovery story is clouded by driver shortages and regulatory threats to have workers reclassified as employees.

U.S. President Joe Biden campaigned on the promise of delivering benefits to gig workers and U.S. Labor Secretary Marty Walsh last week intensified the debate, telling Reuters in an interview that "a lot of gig workers should be classified as employees."