Uber and Lyft prices at record highs even as drivers return

Drivers are returning to Uber Technologies Inc. and Lyft Inc. after companies have spent a lot of incentives to deal with a workforce shortage due to a pandemic. This change does not lower fares from record levels, new data shows.

The average Uber and Lyft fare in the United States increased month-over-month from February to July, hitting new highs each time, according to data from Rakuten Intelligence, a market research firm that based his analysis of electronic receipts from more than one million consumers. While the average fare in July increased slightly from June, that means consumers paid more than 50% more for a ride last month compared to January 2020, before the pandemic.

That’s the most Americans paid for Uber and Lyft rides in at least three years, according to Rakuten.

The sky-high prices, which companies say are due to persistent labor shortages, come despite a recent influx of drivers. Uber said on Wednesday that 30% more drivers signed up in July compared to the previous month. Lyft said on Tuesday that 50% more drivers signed up in the three-month period that ended in June compared to the previous three months.

“The data is clear: The supply of drivers has not kept pace with the growing demand for drivers, unbalancing the carpooling market,” a Lyft spokeswoman said, adding that the company would continue to invest in incentives for drivers to ease the shortage.