As vaccinations embolden more people to frequent bars, restaurants, and wherever else they liked to go before the coronavirus shut everything down, demand for ridesharing is outstripping the number of Uber and Lyft drivers on the road. Drivers left the platforms in droves earlier in the pandemic as lockdown orders led up to 94 percent of riders to stop using such services. The risk of catching the coronavirus from passengers also led drivers to stay at home or pursue somewhat safer gig-economy jobs like food delivery. The current imbalance between supply and demand is leading to noticeably higher prices and longer wait times as Uber and Lyft struggle to get drivers to come back. That’s why there are so many jaw-dropping viral anecdotes, like the ride from Midtown Manhattan to John F. Kennedy International Airport that cost more than a flight from New York City to San Francisco.
To erase this sticker shock, ridesharing companies are coughing up bucketloads of money in an attempt to lure more drivers back onto their platforms. Uber announced in April that it would spend $250 million in a matter of months as part of a one-time “stimulus” package, which includes incentives like guaranteeing sums of well over $1,000 for completing a certain number of trips. Lyft is spending $100 million in similar effort. However, according to reporting from the New York Times, these sorts of bonuses aren’t attracting drivers as effectively as they were before the pandemic, partly because gig workers are still concerned about infection. Government stimulus checks have also lessened the financial pressure on drivers who might otherwise be forced to start taking passengers again even despite their worries about getting sick. Uber disclosed in its May earning report that 3.5 million active workers are using its platforms, which is a 22 percent drop from last year. For riders, this translates to more expensive trips. Research cited by the Times indicates that ride prices in April were 40 percent higher compared to 2020. Surge pricing has also drawn the relatively few drivers currently out on the road to areas where many people are seeking rides, resulting in fare spikes of 50 percent or more.