It can be quite shocking to open Lyft and Uber ride-hailing apps.You'll see much higher prices for similar rides if you haven’t requested one since before the pandemic. Rakuten's data shows that ride-hailing prices in the United States were 50 percent more expensive in July 2021 than in January 2020 before COVID restrictions were implemented.An analysis by Wall Street Journal shows that ride costs have increased each month since the beginning of 2021, even though more people are getting vaccinated. Similar data was found for higher-than-usual fares earlier in the year. In April, passenger costs rose 40 percent. This is mostly due to a shortage of drivers.Now, just a few months later Uber CEO Dara Khoroshahi stated during the July earnings call that Uber saw a 30% increase in drivers in July compared with June. Lyft executives stated that the company, which is based in San Francisco, saw the same trend with more drivers than June. But it's not enough.The demand for rides continues to outpace the number of drivers who are available to provide them. Drivers are still reluctant to use ride-sharing again so far, but fare increases are continuing. While things are improving month-over-month, it is not back to prepandemic levels. Therefore, passengers will continue paying more for Uber and Lyft, which offer the most expensive rates ever.Drivers don't sit at home waiting for the pandemic outbreak to end. Many people have moved to Uber Eats and Uber Eats for food delivery. Even though more people are moving to restaurants and bars, food delivery continues to thrive. People became used to having food delivered to their doors after months of restrictions.Khosrowshahi stated that most former Uber drivers don't return to driving people due to "safety concerns" because the virus spreads. It's safer to have a burger and fries instead of a living, breathing customer.Uber's CEO noted that background checks for Eats drivers are quicker and easier than traditional drivers. Therefore, it is easier to find new couriers through the platform.Riders are returning after a long lull in the first pandemic. Khosrowshahi stated that many American cities have returned to pre-pandemic levels of ride requests. This includes places like Phoenix, Atlanta, Dallas and Dallas. However, the wait times and prices will only continue to rise if there are not enough drivers.SEE ALSO Lyft returns shared rides for the first time since pandemic.Khosrowshahi noted that ex-Uber drivers are returning to work as vaccine rates rise. Uber won't require its drivers to get vaccinated but passengers and drivers must continue to wear masks.
