Uber and Lyft saw record profits despite a shortage of drivers

Uber and Lyft saw record profits despite a shortage of drivers

New York: Profits reported by U.S. based ride sharing companies Lyft and Uber have gone up even as both companies are conducting recruitment campaigns due to a shortage of drivers due to the COVID 19 crisis.

Charges to customers nationwide for on-demand rides have gone up since COVID 19 struck.

Uber and Lyft, the two ride sharing heavyweights that control 90 percent of the US market, said some drivers quit during the initial phase of the COVID- 19 crisis because of concerns of being infected by passengers.

Many drivers signed on to deliver food that was believed by drivers to carry less risk due to minimal contact with people.

In addition to extended waiting periods, the shortage of drivers has resulted in rising costs that have been borne by customers, according to Lyft and Uber.

Both ride sharing companies saw the highest profits in spite of the shortage of drivers, as they drove record numbers of passengers.

Logan Green, Lyft's chief executive officer, reports profits increased by 73 percent from the corresponding period last year, while Uber had a 67 percent jump in profits.

Many office staff are still working from home, but they use ride share services in order to minimize their exposure to the general public.

In Q 3, 2021, Lyft had an increase of two million riders. Nelson Chai, the chief financial officer at Uber, said the company now operates some 85 percent of its pre-COVID- 19 business as of October.

Uber reports that it is booking 67 percent of its airport trips, compared to before Covid struck.

In 2020, Lyft saw a 45 percent increase in the number of drivers compared to the same period in 2020, while Uber has seen its driver workforce increase by 65 percent since the first month of 2021.