Prices of Uber rides climb as app seeks more drivers
Uber rides have become more costly for consumers as the app has struggled to recruit enough drivers to match increasing demand.
The average cost of a journey via the ride-hailing platform has risen by a third since April, from £9 to around £12, according to figures from market research company Edison.
While the number of drivers has recovered to pre-pandemic levels, Uber is experiencing record demand as lockdown restrictions have eased, the Telegraph reported.
The app’s model of “dynamic pricing” means the price of journeys is adjusted based on demand from passengers and the supply of drivers.
There are plans to increase the number of drivers on the app from 70,000 to around 90,000 by the end of the year.
UK spending made up 7.1 per cent of Uber’s total in the second quarter of the year, at around $613m (£447m).
The platform said it would treat its drivers as workers after a Supreme Court case determined they should be entitled to the National Living Wage and annual leave.