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Uber, Lyft Ride Prices Up 40% on Driver Shortage Ride-hailing companies are struggling to meet demand.

By Euni Han Edited by Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

ROBYN BECK | Getty Images

Just in time for summer, Uber and Lyft say there's a driver shortage, according to SlashGear.

Both companies are reporting longer wait times and higher prices, with both up to 40% more leading up to the Memorial Day weekend.

One traveler says his Uber ride from New York City's Midtown to JFK Airport cost as much as his flight from New York to San Francisco. Others report rides costing double that of pre-pandemic levels with wait times of up to 45-minutes.

Both companies say they're trying to meet the surge in demand. A Lyft spokesperson says the company's offering incentives to current drivers. In a recent earnings call, Lyft also said it was looking to increase its number of drivers.

Uber, meanwhile, has confirmed it's dealing with a driver shortage and recently announced a $250 million incentive package to lure drivers back to work. An Uber spokesman says the new incentives bumped up average hourly pay from $24 to the current $31.

The worker shortage, which is due to many people opting to stay at home rather than return to the workplace, is affecting several businesses including restaurants, bars and delivery services -- and the timing isn't great. T

There's a big boom in post-pandemic travel, vacations and beach businesses with the opening of the summer season and the easing of pandemic restrictions.

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