Lyft says wait times decrease as U.S. drivers mark gradual return
Reuters
Published Jun 16, 2021 01:03PM ET
By Tina Bellon
(Reuters) - Lyft Inc (NASDAQ:LYFT) said on Wednesday the number of drivers on its U.S. ride-hail platform was gradually increasing, resulting in reduced wait times for customers and a modest decrease in surcharge pricing as travel rebounds from pandemic lows.
Lyft said active drivers on its platform had increased 10% since the beginning of May, adding that thousands of new drivers were activated over just the past two weeks.
In data provided to Reuters exclusively, the company said passenger wait times across the United States were down around 15% on average compared with one month ago. Wait times in some major markets, including Austin, Texas; Miami and Philadelphia, were 25% to 30% shorter and down as much as 35% in Las Vegas.
Serving the rebound in travel demand is crucial for Lyft, which has promised investors it will be profitable on an adjusted basis by the end of the third quarter in September. Longer wait times mean a loss of potential customers and lower revenue.
Lyft declined to provide absolute figures for driver numbers and wait times. The company also warned that wait times and prices may continue to fluctuate as the rebound from the pandemic continues.
Lyft and its larger rival Uber Technologies (NYSE:UBER) Inc have been scrambling in recent months to bring back drivers to their platforms to serve a sudden uptick in rider demand as more Americans are vaccinated against COVID-19 and resume pre-pandemic travel.
Uber and Lyft are trying to lure drivers back with additional incentives and the promise of temporarily higher earnings.
The undersupply of drivers has led to a sharp increase in prices and long wait times in many U.S. cities, causing many ride-hail customers to vent their frustrations online.
Lyft said on Wednesday that surcharge fares during peak demand - a measure the company calls Prime Time pricing - had declined 15% during the last week of May compared with the last week of March.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.