Southern Nevada is continuing to experience a rideshare driver shortage. To address the issue, Uber is looking to reinstate surge pricing; however, the company is currently unable to do so because the governor’s state of emergency declaration prohibits the practice.
In an email to Nevada Uber users, Uber said:
“You’ve likely noticed that it’s been difficult to use Uber recently in Nevada. One of the main reasons is that Nevada has been in a state of emergency since the start of the pandemic, and Nevada regulations currently prevent rideshare companies from increasing fare rates during a state of emergency. Therefore, the state has prohibited us from using surge pricing (a tool that incentivizes drivers to meet rider demand when and where it’s greatest); as a result, drivers’ earnings—and availability—have suffered,”
“While this regulation makes sense for short-term emergency situations such as storms and fires, the COVID-19 state of emergency has now lasted for well over a year. And with the demand for rides continuing to increase as the state reopens, drivers and riders alike are being negatively affected by this regulation,”
“In order to improve this situation, we need your help. Use the link below to ask Governor Sisolak to allow surge pricing in Nevada during the extended state of emergency so drivers will want to get back to helping you get where you want to go.”
Not all drivers believe price surging is the way to go, according to 3 NBC News. Former driver Ray Lanfear believes drivers will continue to opt for unemployment benefits and current driver Caesar Montes thinks drivers will only return when more Americans get vaccinated and restrictions ease.
It is unclear how the governor will respond to Uber’s request or if drivers will ask the governor to allow price surging to begin again. To learn more about the latest rideshare industry news, click here.