If you were used to booking cheap rides into downtown Miami for a night out on the town using Uber or Lyft before the pandemic, you are in for a surprise!
Uber and Lyft rides cost 40 percent more now than they did last year, according to a New York Times report.
And if you were used to booking an affordable vacation while living in a stranger’s home, be ready to pay more as companies like Airbnb have raised rates as much as 35 percent more. Even food delivery apps line Uber Eats and Dash, have been gradually raising prices and adding new fees.
According to The Times, part of the reason is that shared economy companies are trying to turn a profit after losing money for years with a business model of deeply unprofitable operations to increase market share, ending the era of cheap services subsidized by extremely patient investors.
Other factors might be at play. In the early months of the coronavirus pandemic — both the rideshare and travel industries were essentially shutdown, leaving drivers and hosts with no income. As things reopen across Miami and the country, triggering an increase in demand, shared-economy companies face a different problem, according to the NYT: too few drivers willing to take on the risky workplace conditions, causing Uber or Lyft to drive up costs for rides to entice workers.
Unfortunately, all this translates to the cost of that Uber or Lyft ride across the causeway, or booking a vacation house for a summer stay, costing much more in 2021 than 2019.
For the entire NY Times article, click here.