As states begin to lift COVID-19 restrictions all around the country, Lyft is seeing an increased demand for rides. This increase has the potential to rebound Lyft’s shares and provide drivers with the income they were used to receiving prior to the pandemic.
Business Insider noted that rides on the platform increased overall by 26% from April to May. However, usage is still down 70% from the same period of last year. As a result of the increase, Lyft shares went up about four percent in after-hours trading, which made up for trading day’s losses.
Some cities are seeing significantly larger increases in rideshare demand. For example, Las Vegas was up 59%, Denver went up 54%, and Miami was up 64%. Austin, Texas saw the largest increase in demand, at an increase of 73%. The significant increases are attributed to eased restrictions on social activities and visiting business venues. Currently, riders are taking more rides on weekdays versus weekends—including commute trips by essential workers and trips to stores selling essential goods.
According to Lyft, “Since mid-March, Lyft has observed that the actions instituted by government authorities to limit the spread of COVID-19 have impacted the relative distribution of intra-week rides. Riders are taking relatively more rides on weekdays versus weekends, including commute trips by essential workers as well as trips to stores selling essential goods.” The company plans to release financial results for the second quarter ending June 30, 2020 in early August.
While an increase in rides has many benefits for different parties, more rideshare vehicles on the road mean the potential for an uptick in accidents. The past few months have been nearly devoid of Uber and Lyft accidents in the United States—which can be attributed to the stay-at-home orders to mitigate the spread of the virus. With rideshare drivers back on the road, it’s likely we’ll see a return of crashes.
In the event you have been injured in a rideshare crash and you believe your driver’s negligence contributed to the situation and your losses, the Rideshare Law Group can investigate your situation and determine if you’re eligible for compensation through a personal injury claim. The sooner you get in touch with our law firm, the better your chances are of receiving full and fair compensation for your losses. Contact us today to learn more or to get started with your claim.