Uber headlines: Why Are Uber and Lyft Fares So High in Los Angeles?

From LA Magazine:

If you’ve taken an Uber or Lyft recently, you’ve likely noticed that it’s neither as cheap nor as convenient as it once was. Wait times for a ride have shot up to 20, 30, 40 minutes, and fares have followed suit. It’s not unusual to find that a trip from downtown L.A. to LAX, which should normally range between $40 and $50, is suddenly $120 to $160. But why?

To hear Uber and Lyft describe it, we’re in the midst of a perfect storm: more people are using rideshare services than ever before, yet there is a dearth of drivers.

And there is truth to that. “Demand levels are up anywhere from 60 to 70 percent,” explains Daniel Ives, managing director of equity research at Wedbush Securities, while there’s a shortage in drivers “somewhere between 40 to 50 percent below peak levels” pre-pandemic.

“In 2020, many drivers stopped driving because they couldn’t count on getting enough trips to make it worth their time,” Uber said in an April statement. “In 2021, there are more riders requesting trips than there are drivers available to give them—making it a great time to be a driver.”

Continue reading Why Are Uber and Lyft Fares So High in Los Angeles? on LA Magazine

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