Out of odd, unexplainable reasons, rideshare prices are recently increasing beyond acceptable levels. Lyft and Uber are affected, and experts are saying these companies may lose customers in no time.
To lose customers?
Lyft and Uber might lose their customers, both the loyal and new, if rideshare prices continue to topple current levels, a report and analysis by experts stated yesterday.
According to the report of the specialists from an app catering to ridehail drivers, the median price of a Lyft and an Uber ride in the United States rose 7.2 percent year over year in 2024 to a whopping $15.99, which isn’t the most affordable option for passengers.
The experts also found that the average weekly gross earnings of Uber drivers fell 3.4 percent last year, compared to the change a year ago, which was just at $513.
Meanwhile, Lyft’s drop in those earnings was at almost 14 percent to $318, with weekly hours on the platform dropping by 5.4 percent.
Alarming? Alarming. Media reports said over 72 percent of consumers are willing to “reduce or stop using rideshare services if prices increased further,” from a survey of 1,000 respondents.
The cause
One of the causes of these drops could be the weaker-than-expected gross booking forecasts incurred in recent weeks. Shares for both of those firms also declined following this announcement.
For Uber, this alarming decrease could be attributed to macro and seasonal factors that include the January 2025 Los Angeles wildfires, currency headwinds, and the cold winter weather, as well as the rising trip prices.
Solutions
To alleviate those problems, Uber is reportedly investing millions of dollars into a nationwide ad campaign pushing for reforms in insurance policies the company said have been exploited by lawyers so rides are more expensive. In turn, Uber has attended to the demand in key markets such as New Jersey and California.
Also, a separate media report stated how drivers at Lyft and Uber are taking the initiative to develop apps that drivers can use instead of just those two ride-hailing platforms.
The idea came from Lee Sperry from San Diego, who said, "The co-op would be very different in the way it operates, in the way that we handle how the app works and how the pricing goes, how the driver gets paid, how the hiring goes, who makes the decisions.”
Uber isn’t disagreeable to this at all. In fact, a spokesperson from the company told business correspondents, "Drivers are independent contractors and have the freedom to work however and whenever they want – for example, by driving for other ride-share platforms.”
So, if you drive for Lyft or Uber, feel free to give this project a go.
‘Misleading’
However, Uber spokesperson Ryan Thornton, referring back to the findings of the expert report, said it is “misleading,” elaborating that while Uber’s data showed drivers in the United States “earning above $30 per hour while on a trip” on average, this calculation doesn’t account for the time the drivers spend on the road while waiting to match their driving with ride-searching passengers.
But, will the world be ready to bid goodbye to Lyft?