Drivers Set To Come Back To Platforms As Enhanced Unemployment Benefits Expire

With enhanced federal unemployment benefits expiring on September 6th, driver supply is likely to come roaring back. Former TLC Chair sees "Taximageddon"

With enhanced federal unemployment benefits expiring on September 6th, Uber and Lyft’s driver shortage problems may be coming to an end. In a recent and wide-ranging interview, Uber’s CEO Dara Khosrowshahi believes passengers fares will normalize by September (i.e., driver shortage issues will start to go away).

‘[Uber CEO Dara Khosrowshahi] said the company is leaning in and investing super-aggressively to bringing drivers back…[Uber’s CEO] predicted that by September, prices will return “to nearly the good old days”’ - NY Times

In fact, former NYC Taxi & Limousine (TLC) Chair Matthew Daus predicted back in June that while the summer months were likely to be pricey for rideshare passengers that he believed the dynamic would “crash to halt when the federal unemployment benefits expired in September”. Daus believes the ending of the additional benefits could actually result in the opposite of today’s status quo where there would be too many drivers/cars looking for too few passengers …