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Rideshare companies say driver shortage is pushing prices up

It's not just you: Uber and Lyft rides are more expensive, company executives said this week.

Why it matters: Demand for rideshare is roaring back as the economy starts to reopen, but the same can't be said for drivers on the apps. That means fewer cars on the road, causing a supply gap that's pushing up prices.


What's going on: Lyft says stronger rider demand began to outpace driver supply at the end of February.

  • One reason for the driver deficit: safety concerns and fear of contracting the virus, Uber CEO Dara Khosrowshahi told CNBC on Thursday.

What they're saying: "We've told our investors we are going to lean into driver supply. We are going to put up our capital to bring more drivers into the system" to alleviate pricing pressure, Khosrowshahi said.

  • Uber last month announced a one-time stimulus payment cumulatively worth $250 million to help lure drivers back.
  • "As the vaccine rollout continues, driver availability should naturally improve," Lyft CEO John Zimmer said on a call with Wall Street analysts, though it expects to invest in incentives to help move the ball along.

The dynamic has led to record earnings for Lyft drivers in some U.S. cities, the company says.

  • Lyft drivers in top markets earned on average more than $30 per hour, 85% above pre-pandemic times. The company hopes this will help pull even more drivers onto the platform.

The bottom line: Add rideshares to the list of things that cost more — at least in the short-term, as the economy revs all the way back up and the vaccination campaign picks up pace.

Go deeper:Why it feels impossible to get an Uber in Des Moines

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House Republican campaign arm to accept cryptocurrency donations

The Republicans' House campaign arm will begin accepting contributions in cryptocurrency, Axios has learned.

Why it matters: The National Republican Congressional Committee is the first national party committee to solicit crypto donations. That puts it at the forefront of a disruptive financial technology that could test campaign finance rules.

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Biden backs protests in Cuba, calls on officials to "hear their people"

President Biden said Monday he supports the Cuban people and their "clarion call for freedom and relief," amid massive protests on the island against the government and food and medicine shortages during the pandemic.

What he's saying: "The Cuban people are bravely asserting fundamental and universal rights. Those rights, including the right of peaceful protest and the right to freely determine their own future, must be respected," the president said in a statement.

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