Many may be avoiding rideshare companies because of how the pandemic has affected the rideshare experience. Two main hallmarks that have defined rideshares during the pandemic was surging prices and long wait times, made only more drastic by the absence of drivers. However, this may change for Uber by the end of the year.
In an interview, Dara Khosrowshahi, the CEO of Uber, predicts this will level out because of drivers returning to the app and for supply and demand to not be as skewed as it was in the past. After losing drivers due to fear of COVID-19 transmission, Uber was able to rely on its food delivery service, UberEats, as many drivers shifted to that. Food delivery means little to no contact with others, and there was a high demand for meal and grocery delivery.
But as for Uber’s main function, ride sharing, there was a driver shortage that seemed would be permanent unless something changed. And something did. Uber has implemented new ways to bring drivers back to the platform. With an available vaccine and the benefits that Uber is offering, they’re seeing a return of drivers in the new quarter.
Uber invested heavily in bringing drivers back. They spent hundreds of millions because demand is rising again. They’re currently waiting for supply and demand to return to a more balanced state. As more people are vaccinated, returning to work, traveling, or are more comfortable in hailing a rideshare, the surged prices and long wait times will recede.
The company is also looking further into the future. As of the first quarter of next year, there’s a chance for the company to be profitable for the first time. While there are projections and estimations on the numbers, only time will tell if the company will be profitable.
The Rideshare Law Group stays up to date on what’s happening in the rideshare world. As it’s estimated that people will be regularly using these services again, we’re here in case any accident occurs.
If you’ve been injured in a rideshare accident, the Rideshare Law Group can help. Our skilled Uber accident lawyers can fight for you to get justice. We’ll hold the liable party accountable for their actions. Give us a call today.