It’s not just you: Rideshare prices are going up. The prices of Uber and Lyft rides have soared in recent months. As the pandemic subsides and more people go back to socializing, partying and visiting family, the demand for these apps has risen. In some cities, prices have increased by 50%. This situation is leaving customers with a lot of questions. Why is ridesharing so expensive now? What is the cheapest, safest ridesharing platform?
Surge pricing
The main reason for this uptick in prices is the demand for rides is much higher than the number of available drivers. It’s one of the most basic laws of economics: If demand is higher than supply, prices rise. Uber has even acknowledged the fact that this is happening; their website reads, “Dynamic pricing [also called “surge pricing”] takes effect when a lot of people in the same area are requesting rides at the same time. This means that rides will be more expensive.” Although companies like Uber have offered various incentives to get more drivers, like cash bonuses, the strategy isn’t working as expected.
Looking forward
Despite the discontent with current prices and wait times, things might be looking better. Uber CEO Dara Khoroshawi said that prices would be back to normal by September. One main problem these companies are facing is drivers being afraid of getting sick. But with more and more people getting vaccinated, it seems that more drivers will go back into service. Uber and Lyft have invested millions of dollars into driver recruitment, and it’s bound to pay off.
What is the cheapest ride service?
Even then, these are not the only rideshare companies out there. One alternative is Via, which allows you to share rides with people going in your direction. As these rides are shared, the cost is much cheaper than that of Uber and Lyft. Another one is Curb, which allows you to hail a cab from your phone. Normally, these rides are cheaper than those of rideshare apps.
Today there are more fast, convenient, and safe options for ridesharing than ever, and perhaps the pandemic struggles will help stabilize the market and give smaller platforms a boost.
