Lyft executives announced that driver pays are at an "all time highs" in an earning's call on Tuesday. It is in contrast with the company's low income in the first quarter of 2021 that CNBC reported.
The surge is due to the imbalance in the ratio of passengers and drivers. There are now more riders than the latter as pandemic restriction softens and more people are vaccinated from Covid 19.
The said imbalance is good news for drivers, but an unfortunate reality for those trying to book a ride. It is because the high demand, consequently, increased the prices of each ride.
To add, most of the drivers have shifted to food delivery since last year, as the sudden need has been there, Mashable reported. Thus, fewer are driving for Lyft.
As an answer to the driver shortage, Mashable said in a report, Lyft even had to throw a cash bonus for them to come back behind the wheel.
Read more: Lyft Introduces Health Care Program that Lets Organizations Give Passes for Doctor's Appointments
Increased Riders, Incentives Uplifts Earnings
The all-time high earnings, ride-share driver data firm Gridwise said via Mashable, is the accumulation of both pricier riders and generous incentives from the ride-hailing company.
The firm goes on to add that the average earning is at $13.63 per trip last April. Per hour, on the other hand, is $24.89.
Moreover, the incentives also saw an increase of 334 percent from January. It hugely affects the driver's payout.
Lyft, further said during the call to investors, that some drivers are even bringing home $35 per on average.
The recent figures, indeed, are even higher than the numbers before the pandemic happened.
Driver Shortage to is Ease Soon
The ride-hailing app believes that the vaccination will soon put an end to the shortage of drivers. Lyft further adds that the latter will soon feel "more comfortable getting back behind the wheel."
Aside from that, announcements like this could lure more riders back to the app. It could help further balance the prices.
Reversal From Early Pandemic Situation
The situation now, wherein drivers are earning more as riders flood, is the reversal of what occurred during the start of the pandemic.
May last year, Lyft even had to offer cheaper rides to those who are willing to wait. It is in response to the forced shutdown, the cheapest option in the app, ride-sharing due to the pandemic.
The pandemic crisis has also pushed booking companies like Lyft, Uber, and Airbnb to lay off their employees.
As a result, Lyft had to let go of more than a thousand staff members last year.
If income for drivers is doing better than before the crisis, hope for prosperity in these booking apps is taking shape.
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This article is owned by Tech Times
Written by Teejay Boris
