Uber and Lyft Surges: What to Know

The incentives are starting to have an effect, according to Gridwise, a service that helps gig workers track their earnings. Ride-hailing earnings have steadily climbed this year, rising to $25 an hour in May from $18 dollars an hour in January, Gridwise said.

The higher pay appears to be enough to tempt some drivers to return. While the number of drivers is still below prepandemic levels, Gridwise estimates it is down only 11 percent, an improvement from the 25 percent deficit in January. Uber also said that the overall number of trips with surge pricing was declining after a peak in March.

“When employers say they can’t find the workers that they need, always add the phrase, ‘at the wages I want to pay,’” said Heidi Shierholz, the director of policy at the Economic Policy Institute. “We know how to attract workers — give them better jobs, better pay, better working conditions. It’s not rocket science; that’s how you do it.”

But customers are impatient for a return to the quick, cheap rides. In Miami, Ms. Lima said she had hoped the company would maintain low prices while it tried to get more drivers back on the road. “Keep customers happy,” Ms. Lima said. “At least with the price point.”

For now, she said, it is impractical to use Uber the way she once did because of the price jump. Instead of an everyday utility, she said, Uber is likely to become a splurge item.

Article source: https://www.nytimes.com/2021/05/30/technology/uber-lyft-surge.html