Uber and Lyft prices continue to climb to new highs, report says

The opening of the Uber and Lyft ridesharing apps can be shocking these days.

If you haven’t requested a ride since before the pandemic, you’ll notice much higher prices for the same rides. Based on data collected by analytics firm Rakuten, US carpool fares were 50% higher in July 2021 than they were in January 2020, before COVID restrictions took effect .

A the Wall Street newspaper Analysis shows that the prices of groceries since the start of 2021 have been increasing every month, even as more and more people are vaccinated. A similar report on higher-than-usual fares at the start of the year (passenger costs rose 40% in April) mainly blamed the problem on a shortage of drivers.

But now, months later, Uber CEO Dara Khosrowshahi said during his company’s earnings call in July that there had been a 30% increase in the number of drivers on Uber in July. compared to June. In another call for results, Lyft executives said the San Francisco-based company saw the same trend, with more drivers in July compared to June. It is not enough.

The demand for trips continues to exceed the supply of drivers available to make trips. Prices continue to rise as drivers are still reluctant to return to carpooling. Things may be improving month over month, but it hasn’t returned to pre-pandemic levels, so passengers will continue to pay more as Uber and Lyft offer the highest fares ever. seen by users.

Drivers aren’t just sitting at home waiting for the pandemic to end. Many have shifted to food delivery, especially on the Uber platform with Uber Eats. Food delivery continues to be successful even as more and more people are starting to leave home for restaurants and bars. After months of restrictions, people got used to food being brought right to their doorstep.

Khosrowshahi said the majority of former Uber drivers have not returned to drive people due to “safety concerns” as the contagious virus spreads. But with a burger and fries in the backseat instead of a living customer, it seems less risky.

Uber CEO also noted that background checks are faster and simpler for Eats drivers, so it’s easier to get new couriers on the platform compared to traditional drivers.

After a long lull during the first part of the pandemic: the riders are coming back. During Wednesday’s call, Khosrowshahi said many US cities have returned to “normal” trip demand levels with pre-pandemic passenger numbers, such as Miami, Atlanta, Dallas, Houston and Phoenix. But without enough drivers, prices and wait times will continue to climb.

Khosrowshahi noted that as vaccination rates increase, former Uber drivers are increasingly returning to work. Uber will not require its drivers to be vaccinated, but drivers and passengers must continue to mask themselves.