Site icon Tech Newsday

Uber, Lyft Prices Surge As Demand Outweighs Drivers Supply

Uber and Lyft customers are currently suffering from expensive fares for rides and long waits because of a lack of drivers on the platforms.

Prices for Uber and Lyft are 79% higher in some cities than before the pandemic, according to analytics firm Gridwise Inc.

Although companies are working hard to motivate drivers to work for them by offering one-time premiums for new drivers and other financial incentives for additional trips, the issue remains undefeated.

Uber chief executive Dara Khosrowshahi said in a conference call on Wednesday: “Drivers increasingly want to get back on the road. But in major cities like New York, San Francisco, and LA, demand continues to outpace supply, and prices and wait times remain above our comfort levels.”

While Uber and Lyft have long kept fares relatively low, Gad Allon, a professor at the University of Pennsylvania’s Wharton School, believes it is unsustainable for people to protest for better wages for Uber and Lyft drivers without expecting higher fares.

He believes that if riders want drivers to be better paid, they need to adapt to more expensive routes.

For more information, read the original story in NPR.

Exit mobile version