It is perhaps not a bad move for Lyft and Uber to bring back surge pricing in the US state. The pricing practice has not been available here since March 2020, when Governor Charlie Baker announced an emergency due to a bill passed way back in 2016. As per the bill, a ride-hailing business and driver cannot increase base fares in a governor- or federal government-declared emergency. On the flipside, that reduces ride-share vehicle driver incentives as well.
Uber’s representative Alix Anfang stated that making surge pricing possible brings about better reliability. Lyft’s and Uber’s services have dropped statewide at the time of the epidemic. Ride-hailing services came down 62% here at the same time as some towns in Western Massachusetts did not have any rides.
Several drivers who used to work for both ride-share service providers stopped operations in 2020 as they could not have enough trips or rides to make a continuation worthwhile.
With vaccines rolling out and individuals starting to move again, Lyft stated that there is a considerable rise in demand. Lyft is also trying to meet it with financial encouragement to its vehicle operators. So, those drivers are not just busier but also earning more money than they used to before the health emergency.
Lyft has included thousands of vehicle operators across the nation, and the company’s service has reduced wait times by over 15% nationally. It keeps being a good time for Lyft’s drivers to operate, as those in top US markets earn considerably more money than in the pre-epidemic period.
Uber also notices that riders in the state are utilizing its application to a greater extent, so it works on satisfying the demand. With a stimulus of $250 million, it would provide drivers with more encouragement and guarantees. It has also communicated with drivers to make them aware of the extra earnings in the near future.
As for Alix Anfang, with more vaccinations and increased mobility, riders in the state and elsewhere are utilizing Uber’s application more. When people keep traveling, he said that Uber expects to have elevated surge levels as it keeps working to get its vehicle operators back behind the wheels.
For people who wish to avoid spending more money on a trip, Lyft introduced an offer that would save them money if they wait longer than usual. Lyft’s offer lets riders choose a longer waiting period while paying a lower price than usual, even as drivers have the same earnings as with a standard trip.
