You can’t discover a cab. Uber costs are hovering. Here’s why

Written by Winnie Hu, Patrick McGeehan and Sean Piccoli
The taxi line at La Guardia Airport had barely budged.
There have been no cabs in sight, and the grumbling was getting louder. People scanned the street for any glimpse of yellow. A dispatcher grimaced.
Finally, a lone taxi rolled up for a ready passenger. Then it was gone.
“I haven’t seen it like this,” mentioned Alex Hyken, 28, who lives in Brooklyn and had simply returned from visiting kinfolk in St. Louis, solely to seek out herself caught behind 40 individuals who have been additionally making an attempt to get a taxi. Ten minutes later, she whirled off along with her suitcase looking for an Uber or Lyft.
When the pandemic shut down New York, all of it however worn out town’s taxi trade, as commuters labored from house, vacationers stayed house and companies closed. Fleet house owners lowered operations or suspended them altogether. Many drivers discovered different jobs, together with driving vans or making Amazon deliveries.
Now, as town begins to get well, buoyed by low virus charges and widespread vaccinations, yellow taxis are largely lacking from many avenue corners and airport arrival areas.
An Uber driver in Manhattan on July 13, 2020. (Amr Alfiky/The New York Times)
There are about 6,000 cabs on the street presently, in accordance with trade analysts. That represents fewer than half of the overall pool of 13,500 medallions, the city-issued permits required to function a yellow taxi. Some 5,700 of these that aren’t working have been taken out of service indefinitely by house owners who put them into storage voluntarily and returned the license plates.
The scarcity is the most recent setback for an trade that has struggled amid an inflow of ride-hailing companies and a spate of suicides amongst taxi house owners and for-hire drivers. Even earlier than the pandemic, some taxi house owners confronted monetary smash after being lured into taking up reckless loans to purchase medallions at artificially inflated costs.
In New York, Chicago, Las Vegas and different cities, demand for taxis and ride-hail vehicles has rebounded sharply from pandemic lows, outpacing the return of each drivers and vehicles. That has led to irritating waits for riders, when taxis are even obtainable.
With drivers sluggish to return to work, the shortage of for-hire vehicles has additionally pushed up the fares charged by ride-hailing apps like Uber that swap to so-called surge pricing when demand peaks.
Many taxi house owners are cautious about how quickly enterprise will rebound. Demand is inconsistent and could possibly be diluted if extra cabs come speeding again to the streets, they mentioned. The trade’s rapid future additionally relies on how quickly staff return to their workplaces, and the way quickly vacationers and enterprise vacationers come again to New York in huge numbers.
Richard Wissak, whose household operates 140 taxis, took his vehicles out of service final 12 months because the coronavirus shut down town. He later put the complete fleet into storage to save lots of hundreds of {dollars} in insurance coverage, taxes and costs.
“The city was in awful shape,” he mentioned. “No airport work, no office work, and that’s the heartbeat of the yellow taxi industry.”
Wissak desires to get his taxis again on the street, however he worries that there’s not sufficient enterprise but. “Why are we going to put our toe back in the water if we’re not going to be able to survive?” he mentioned.
Many house owners of single medallions additionally acquired a short lived reprieve on their mortgage funds in the course of the pandemic. Once they begin working once more, the funds might restart once more too, with out a assure that the house owners can earn sufficient to afford them, mentioned Bhairavi Desai, the chief director of the New York Taxi Workers Alliance.
“They don’t want to go back to work before there’s substantial debt restructuring,” mentioned Desai, whose group has began a fund to assist taxi house owners repay their medallions in money at decrease costs.
Another factor inflicting the scarcity of obtainable taxis is that some drivers who certified for expanded unemployment advantages in the course of the pandemic haven’t but come again to work. Others have moved away or taken different jobs.
Mohammad Hossain, 45, a driver from Queens, mentioned that two of his buddies — one who drove taxis, the opposite who drove for Uber — proceed to gather unemployment, although “I’ve tried to tell them our business is a little bit better.”
About 6,000 taxi drivers have been working in April, in accordance with Bruce Schaller, a transportation analyst. That was up from 2,200 in April 2020, on the pandemic’s peak, however far under the 20,000 who have been working in February, Schaller discovered.

The lack of drivers and vehicles has additionally affected ride-hailing companies. About 54,000 labored for the companies in New York in April, in contrast with 79,000 in February 2020, Schaller mentioned. Across the United States, a experience with such a service prices as a lot as 40% greater than it did a 12 months in the past, in accordance with the analysis agency Rakuten Intelligence.
Uber has dangled $250 million in bonuses and incentives to recruit extra drivers across the county. In New York, the end result has been extra drivers and fewer rides at surge-pricing ranges. “Drivers are returning to Uber in force to take advantage of higher earnings opportunities from our driver stimulus,” mentioned Alix Anfang, an Uber spokeswoman.
The scarcity is a short lived downside that must be resolved as extra drivers reply the demand for rides, Schaller mentioned. But whereas the provision of vehicles might return to pre-pandemic ranges, he added, Uber and Lyft fares might stay excessive, partly as a result of clients are prepared to pay them.
“It’s like restaurants, it’s like Broadway, it takes a while to put things back in place,” mentioned Schaller. “And things will go back differently than before.”
Sunny Madra, who visited New York from California in late May, tweeted that an Uber from Midtown Manhattan to Kennedy International Airport had price him $248, or practically as a lot as his $262 airplane ticket.
“We all have this pre-pandemic muscle memory: You walk out, you hail an Uber and it’s reasonably priced,” Madra mentioned in an interview. “A $200-plus Uber, you sort of say, ‘What happened here?’”
Elizabeth Halem, 43, mentioned she needed to help taxi drivers by taking cabs however that even earlier than the pandemic, she by no means noticed them in her neighborhood, Greenpoint in Brooklyn.
“Sighting a cab would be like sighting Bigfoot,” she mentioned. “Cabs are sort of mythical beings here.”
Instead, Halem finally ends up ordering vehicles utilizing Lyft, which might price practically $50 for a experience, or nearly twice what she paid earlier than the pandemic.

The Port Authority of New York and New Jersey, which runs La Guardia and Kennedy airports, has taken steps to strive to usher in extra cabs, together with sending common updates to drivers via the taxi community’s inner messaging system. The authority has additionally created Twitter feeds to publish details about airport maintain heaps, the place cabs wait to be dispatched to a terminal.
At terminal curbs, airport staff have even urged individuals ready for taxis to strive ride-hailing companies as an alternative.
“There clearly is a shortage of taxi drivers,” mentioned Rick Cotton, the authority’s government director. “Part of the coming back from the pandemic is the taxi drivers were decimated and they need to see that the passenger volume has come back to return to the roads.”
This article initially appeared in The New York Times.