Over the years, the rideshare industry has become increasingly popular. Across the globe, many people use apps like Lyft and Uber to run errands and otherwise get to the places they need to be.
During the height of the coronavirus pandemic, the rideshare industry took a hit. Amid shutdowns and stay-at-home orders, fewer people were in the position to travel or use services like Lyft and Uber; others simply didn’t feel comfortable enough to ride or drive.
Here in America, the economy is progressively working on a comeback; however, there are still some bumps in the road. The rideshare industry, while active, is taking a hit, amid driver shortages.
The current shortage in drivers has thus caused rideshare prices to go up.
The rise in rideshare prices across the United States
Per a Rakuten study, the prices for Lyft and Uber have spiked by as much as 40%. However, large cities such as Chicago, New York, and Los Angeles are getting hit the hardest by higher prices.
Amid the rise of travel and the boom of the hospitality industry, a greater demand for rideshare exists. However, the demand for Uber and Lyft rides is currently outpacing the supply of drivers; therefore, prices have gone up.
During lockdowns and shelter-in-place orders, many rideshare drivers turned to other work as a means of remaining financially afloat. Some drivers have come back; however, riders are far outpacing drivers as of right now.
Getting drivers back on the road again
Rideshare services are currently doing their part to get more drivers back on the road again. Uber, for instance, is giving new and returning drivers a stimulus; the company budgeted out a total of $250 million for the stimulus back in April 2021.
Lyft, on the other hand, is doing their part as well. The company maintains that new applicants seeking approval to drive surged by over 25% earlier this year.
At this time, it is unclear when the driver shortage will officially work itself out. Some analysts believe that weeks or months could pass before the supply of drivers catches up to the heavy demand of riders.