U.S. Ridesharing: How is the rideshare driver supply problem now?

Driver supply has been a key constraint on ridesharing growth; the supply shortage has put upward pressure on ride prices. There has been much discussion over whether rideshare companies can unleash supply with larger pay incentives, and ultimately drive bookings growth alongside more moderate ride pricing.

Are drivers coming back?

Soaring gas prices have pressured rideshare drivers’ wallets. Our panel shows LYFT active drivers in June were still significantly (~50%) below the same period in 2019. Rideshare companies are actively looking for ways to re-engage drivers, such as new fuel surcharges and increased driver incentives.

Rideshare is expensive because of the driver shortage 

Though our recent UBER and LYFT realized pricing suggested slight moderation, charges per mile still remained significantly above January 2021’s level, suggesting supply-demand imbalances persisted across the industry. The pricing was particularly elevated in markets like Chicago, Las Vegas, Boston, and Seattle.

Our data also found that discounts/vouchers (as a % of total charges) remain low for Uber and LYFT, well below levels observed pre-COVID, suggesting neither company is offering more discounts to riders to offset the increase in realized pricing to take market share.

Interested in seeing more insights? Our analysts are constantly uncovering trends in U.S. ridesharing space. Connect with our analyst team to understand the health of the U.S. Rideshare industry, including volume, bookings, and user growth rates for Uber and Lyft, as well as market share trends.