Arkansas judge blocks state from enforcing mask mandate ban

Jenny Park landed recently at Los Angeles International Airport from New York and planned to take an Uber home to her place in the Highland Park neighborhood.

Before she ordered the car, she was hit with sticker shock: the trip would be $150, or about half the price of her flight from New York.

“Roll my eyes to the back of my head until I can’t roll them anymore,” Park said. “Like literally that’s how I felt.”

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She tried Lyft. The fare was not much different.

Both ride-hailing apps predicted cars would not reach Park for a half hour.

“It’s supposed to be like a taxi service that’s supposed to be convenient,” Park said. “But a 30 minute wait is not convenient.”

Not convenient, but it is the new ride-hailing app norm: Pricey fares and extended waits, as Lyft and Uber grapple with a driver shortage that has riders feeling the pain and the companies sweetening the pot to entice more drivers on the road.

The companies are offering one-time signing bonuses for new drivers and other cash perks for completing additional trips. But the incentives aren’t solving the problem.

Article continues after sponsor message

In some cities, Uber and Lyft prices are up 79% from pre-pandemic levels, according to analytics firm Gridwise Inc.

Uber CEO Dara Khosrowshahi acknowledges that prices are stiffer, though he said outside estimates were exaggerated. He said in a series of tweets in June that fares have leapt just 30%, pointing out that driver pay also jumped by 37%.

“Drivers increasingly want to get back on the road,”Khosrowshahi told investors on an earnings call on Wednesday. “But in major cities like New York, San Francisco and LA, demand continues to outpace supply and prices and wait times remain above our comfort levels.”

Lyft CFO Brian Roberts told investors this week that the driver crunch is not expected to be a long-term challenge.

“We do expect that you’ll see folks who like the independence from gig work to come back to rideshare,” Roberts said, pointing out that right now “it’s a very lucrative to drive.

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