Rideshare Prices From Uber and Lyft on the Rise After the Pandemic
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If the receding pandemic has you itching to get out, you’re not alone. People across the country are resuming their social lives and travel plans. But if you intend to get around using rideshare apps like Uber and Lyft, you’re in for a big surprise. The price for hailing a ride has risen significantly from last year and shows no sign of slowing down.
According to the New York Times, the cost of a ride went up 37% this March compared to last year. In April, it rose by 40%.
Find out why rideshare prices are rising, how to become a rideshare driver to take advantage of the spike, and what kind of car insurance you’ll need below.
Ridesharing apps like Uber and Lyft have gotten noticeably more expensive | Twenty20
Why is the cost of an Uber or Lyft ride more expensive than last year?
The short answer for why rideshare prices are up is basic economics—supply and demand. Uber and Lyft say they are struggling to find enough drivers to handle the influx of customers ready to start using their services again.
Both companies treat their drivers as contractors. So when demand is high in a particular area of town or at a particular time, they pay their drivers more to incentivize them to serve the influx.
Since the beginning of May, the New York Times reports that both companies have spent millions of dollars recruiting new drivers.
How to take advantage of the rideshare price surge
It might be frustrating to see your regular ride fares increasing so dramatically, but the lack of drivers could also be seen as an opportunity. With both companies aggressively recruiting to answer the consumer demand for affordable rides, this could be the perfect time to sign up as a driver.
The application processes for Uber and Lyft are both relatively simple. All you have to do is sign up online, provide the information they ask from you, and wait for the company to reply and approve you.
You will need to provide your social insurance number and get a background check in order to get approved, and the length of the process may vary depending on where you live. But in most cases, you could be on the road making money in as little as 3-5 business days.
Becoming a rideshare driver: beyond approval
Getting approved by Uber or Lyft is the first hurdle to using your car to make money, but it’s not the last. You’ll need to take a few more steps in order to be a successful driver.
For one thing, you’ll need to do some research online to find out the best places to pick up customers, where to connect with other drivers, and how to stay safe.
There are message boards and Facebook groups online where drivers share tips and info with each other. Joining a group, especially one specific to your area, could be a life-saver.
You also need to make sure you have the proper insurance. Uber and Lyft both offer their own insurance to their drivers, but they only cover you once you’ve accepted a ride request. Once your customer leaves the vehicle, you might not be covered by your personal insurance or the company’s policy.
Finding rideshare insurance
Thankfully, most insurance providers offer an add-on called rideshare insurance to make up for this gap. Prices for rideshare insurance vary greatly, depending on the company and the driver signing up, but the add-on could cost you as little as $10 a month.
No matter what coverage you need, Jerry is the best way to make sure you find the right policy.
Jerry is a personal insurance broker that lives in your pocket. But don’t worry about buying tiny office furniture, Jerry is an app.
Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete, and you’ll immediately get car insurance quotes for coverage similar to your current plan. Jerry customers save an average of $879 a year. Oh, and we should mention…Jerry is free.