Uber and Lyft’s Prices Spike Due to Driver Shortages

   Uber and Lyft say that a driver shortage is increasing prices and lengthening wait times, both of which are up by 40%.

    The worker shortage, which is affecting several businesses, including restaurants and delivery services, is due to many people opting to stay at home, rather than returning to their workplaces.

     One New Yorker who needed to get to the airport said that his Uber ride to JFK Airport cost as much as his flight from New York to San Francisco. Other New Yorkers report that their rides are costing double what they did before the pandemic levels and that their wait times have increased up to 45-minutes.

    As 51% of residents of New York City have been vaccinated, the COVID positivity rate plunges to record lows below 1%, and pandemic restrictions are eased, more city dwellers are out and about and needing rides.

     Both Uber and Lyft,  however, say they are struggling to meet their surges in demand. A Lyft spokesperson says the company is offering incentives to encourage more drivers to join its team.

     For instance, the company recently announced a $250 million incentive package that raised drivers’ hourly pay from $24 to $31 per hour to entice drivers to come back to work.

Photo by: Unplash.