Wednesday, May 26, 2021

Why Finding a Rideshare is So Difficult in Boston

Because the state restricted surge pricing. Boston Magazine has a nice article explaining the market for ride-sharing. A relatively new state law that forbids “surge pricing” during declared emergencies. Surge pricing is a higher than normal price when demand temporarily increases more than supply. The higher price, and higher payment to drivers, was meant to encourage more drivers to participate. Since the pandemic has been declared a state of emergency, surge pricing has been banned for the past year. It is just not worth it for many Uber and Lyft drivers to take on riders anymore. 

That is, it is not worth it to drive people.  Delivering food is still worth it.

Not all of those Uber drivers got off the road entirely—gig workers looking to pick up some extra money have been kept pretty busy transporting meals instead of late-night revelers. Sales at apps like DoorDash and UberEats more than doubled this past year. Working for these services, and not having to risk interacting with an anti-masker in your back seat, may simply be a more attractive option right now.

Also, unlike ridesharing services, food delivery apps can charge surge prices whenever they want.

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