CM – The driver shortage is driving prices for Uber and Lyft trips up 40 percent

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In many places around the world, people are finally starting to see the restrictions that kept them indoors being lifted as the coronavirus pandemic gradually subsides. As more and more people drop out, many notice a labor shortage in various industries as many continue to choose to stay at home rather than return to the traditional workforce. As a result, ride-sharing services, including Uber and Lyft, face a significant shortage of drivers, as well as more people are out looking for rides. In the past few weeks, customers of both companies have reported long waiting times and high prices.

Reports indicate that Uber and Lyft travel prices rose 40 percent ahead of the Memorial Day holidays as more people traveled under easing restrictions. With the easing of restrictions, people are also starting to go on their traditional summer vacations. One traveler reported that the Uber trip from Midtown to JFK in New York cost the same as his flight from JFK to SFO.

People who are looking for rides have to expect increasingly longer waiting times. Some reports wait up to 45 minutes and trips cost more than double what they would have before the pandemic. Customers across the country have long waiting times. A Lyft spokesman says the company is working to meet demand, including providing incentives for drivers.

Lyft said in a recent call to win that it was focused on increasing the number of drivers available to meet the surge in demand. Uber has also confirmed there is a driver shortage and found that many of its drivers were no longer working during the pandemic. A $ 250 million incentive package was recently announced to get more drivers back to work. An Uber spokesman recently stated that drivers who spend an average of 20 hours a week on the platform earn an average of $ 31 an hour. Before the new incentive package, they were making around $ 24-25 an hour.

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