How do Uber and Lyft manage/dictate/control the locations of the drivers?

Based on Supply and Demand. Surge, Recruiting, Bonus/Promotions, etc.

Uber and Lyft do indeed try to manage the locations of their drivers based on supply and demand, where they try to shift the workforce to where they are desired the most.

Surge pricing is the famous way they accomplish this.  Drivers in their Uber app, would see bright red spots on the map, where the surge pricing is in effect.  Any pickups that occur in these areas will be assessed a higher fare and the driver would earn more.

Uber Boost - Earning Boost

This is a predetermined promotion Uber announces to its drivers, where all pickups that originate from a certain location during certain times, drives would earn more money.  It is diferent from surge in a way that they last longer and is announced in advance.

Driver Recruting

Uber's driver recruiting is location specific, where they emphasize on the markets (i.e. cities) where there is need for more drivers.   Driver referral bonuses, that are paid out whenever someone recommends a driver, also change depending on these needs.

Source:

Surge: Surge Pricing Made Simple (Uber and Lyft)

Boost: What is Uber Boost?

ippei 1202

Uber Driver, CEO of TaxiFareFinder and Unleashed, LLC