When there are not enough drivers to meet demand, the companies pay them more, sometimes resorting to so-called surge pricing to lure drivers to areas where demand is high. Some recent surges have made prices jump 50% or more, said Daniel Ives, managing director of equity research at Wedbush Securities. Surge pricing can be a boon for drivers, but it sometimes provokes outrage from riders, especially during holidays and large events when demand can send prices soaring.
Uber, Lyft prices on rise as more people return to pre-pandemic life
