Why Are Uber And Lyft So Expensive Right Now? And How Can Drivers Cash In?

When Lyft and Uber started in the rideshare business, they introduced a lot of strategies to get people to come on board and also to get drivers attracted and interested. This may have been capital intensive, but the results were visible and eventually achieved.

Some of the strategies employed included introducing promotions, reducing the cost of rides, and compensating drivers using different mediums like bonuses and promotions to ensure that they were well compensated.

When these riding companies had gained the trust of the public, they began to tighten up compensation, reducing earnings for many drivers. They changed the rules, and the pay was no longer attractive to the drivers.

However, the COVID19 pandemic contributed greatly to drivers withdrawing from driving due to the fear of being infected.

Some drivers have taken up office work while others chose what they feel was better for them. This, in turn, has boosted earnings for Uber and Lyft drivers.

The ride-sharing app companies have since experienced a reduction in their drivers and by July 2021, Lyft and Uber were short of drivers by about 40 per cent.

The drivers believed that these companies have no regard for them but instead are more concerned about making more money for the comfort of their drivers.

More drivers from these two companies ( Uber and Lyft) have moved to other delivery apps like DoorDash and Instacart, leading to a huge loss for both rideshare companies.

For instance, in 2019 Uber lost $8.51 billion while in 2020, it recorded a $6.77 billion loss. As for Lyft, a $2.60 billion loss was recorded in 2019 while in 2020, it lost $1.75 billion.

How Much More Expensive Is Uber And Lyft?

The cost of taking a ride from ride-sharing apps like Lyft and Uber is now on the rise. According to Rakuten intelligence, it was recorded that there was a 92 per cent increase in the cost of taking a ride between January 2018 and early July 2021.

Why Is Rideshare More Expensive?

When the pandemic struck, riders tried to maintain a safety position that could prevent them from being infected. Everyone cared for their lives which led to a drastic reduction in the riders of rideshare. At that time, drivers were more than the available riders (although some drivers stayed off to protect themselves from being infected)

But the issue now is that riders are returning to the use of rideshare while several of the drivers aren’t because some claimed that the pay offered by Uber and Lyft is not enough while some others claimed that they want the public to get vaccinated.

The present state is that there are more riders now than the available drivers. The rideshare companies had to increase the cost of each ride to be able to fund the various strategies it is putting in place to encourage drivers to return.

The companies are committing $250 million to bring back the drivers required to feel the gap and help the business get back on its feet.

Are There Any Coupons Riders Can Use For Uber And Lyft?

Here are some of the promo codes available to drivers for the year 2021 by Uber.

• You can get up to $25 off from your first 10 rides (i.e $2.5 per ride), To enjoy this offer, you will have to sign up with the code NEWRIDER25.
• You can get up to $18 off from your first 6 rides (i.e $3 per ride), To enjoy this offer, you will have to sign up with the code NEWRIDER18
• You can get up to $16 off from your first 4 rides (i.e $4 per ride), To enjoy this offer, you will have to sign up with the code NEWRIDER16
• You can get up to $5 off from your first 3 rides (i.e $5 per ride), To enjoy this offer, you will have to sign up with the code NEWRIDER15.

Steps to using the promo codes

• From your Uber app, open the menu
• Click on payment
• Click on ‘’Add promo code’’
• Enter the promo code then tap ‘’Add’’

Note that there are terms and conditions attached to each of these offers which you must fulfil for you to enjoy them.

For Lyft riders, there are two categories of promotions available to riders which are Lyft credit and ride discounts.

Discounts can either reduce the cost of your fare by a percentage or a flat amount.

Credits are made available in your account which can be used for the ride until it expires.

To apply any of the promo given, you need to carry out the following steps;

• Go to your Lyft app and tap on the menu
• Tap rewards
• Enter the promo code
• Tap ‘’apply’’

Promotions are usually for a while therefore you must check the validity of any code before using them.

If you want to know if there are any active promotions,

• Open your Lyft app
• Click on the menu icon
• Tap ‘’Rewards’’
• You can view any active promotions

Are Drivers Making More Money From Uber And Lyft?

It is obvious that the present driver shortage pandemic that occurred due to drivers dropping from 5 million to a 3.5million and has increased Uber and Lyft drivers’ income ( although it is not certain that the increase will be for long).

Drivers now spend less time waiting to get passengers while there is also an increase in the amount of tips drivers get.

Before the time of the COVID 19 pandemic followed by the shortage of drivers, Rideshare drivers earned between $9-$10 per hour but this has increased to an average of $26.24 per hour.

Based on the efforts and strategies put in place by the rideshare companies, to ensure that more drivers are recruited into the workforce, drivers are exposed to more financial opportunities.

How Can Drivers Cash In And 10X Their Uber And Lyft Pay?

There are smart moves that can help to boost uber and Lyft drivers income and therefore impact largely on their total income.

Here are things to do to earn more as a rideshare driver

• Target Peak Periods

Just like the issue at hand where there is an increase in the request for riders but a very low number of available drivers. This has impacted the ride fare which has increased.

Therefore in this same vein when you target peak periods when there is an increase in the requests for a ride, you can make more money than usual.

Periods that can fetch you more money are;

1. Early hours of workdays and evenings at the closing hours from workplaces
2. Holidays
3. Celebration periods
4. Late at night then there are very few drivers available and the likelihood of a surge. 

• Be Smart

Do you know that it is possible for two people to be running the same business but yet there is a huge difference in their results just because one person is smarter so the point here is that every business requires a specific approach to get the best out of it?

So if you want to be successful as either an Uber or Lyft driver even though you are a newbie, you must learn the tactics that work well in the city you are driving in.

Get to know the happenings around you and the best time driving operation brings the best results.

• Take advantage Of Promotions

The rideshare companies come up with promotions offers from time to time to help drivers earn so with this you can easily increase your income. Always maximize promotions that apply to you. 

• Target Hot Spots

Targeting hotspots is another means of increasing your pay with Uber and Lyft. Airports may be a good hot spot though you can make use of the Lyft heat map to locate hotspot areas.

• Recruit Lyft And Uber Drivers

You earn more money by recruiting drivers for Uber and Lyft using your referral code.

• Take Record Of Your Expenses

To make more money is not just about having more money from additional sources but it also involves maximizing the ones you have.

Regulate your spending by cutting down on your cost where possible. For instance, use a good GPS to locate areas with traffic and avoid taking such a location so you don’t waste your time and gas.

Also, getting the best rideshare insurance for your car is essential if you want to avoid losing your savings in case of an accident. 

Fees Available on Uber and Lyft

There are different sources through which Uber drivers get paid. The different sources of income include;

• Standard Trip Fares

This is what drivers earn for driving a particular distance. You can access the local rates from the fare section of your partner dashboard. 

• Surge

Sometimes there is a sudden price change (usually an increase in price) due to high demand from riders. At such times drivers make extra money in addition to their standard trip fare.

• Minimum Trip Earnings

Every city has a minimum amount that will reflect your effort.

• Service Fee

This helps to cater to matters relating to customer support, payment processing, and app development.

• Booking Fee

Riders pay for booking fees which helps to cover hp for operational costs like insurance.

• Cancellation Fee

This fee is paid whenever a request is cancelled by the rider.

The total of all the above-stated sources plus tips makes up what an Uber driver gets for his work. But interestingly