The impact of COVID-19 in ridesharing trips and prices in the city of Chicago.
By: Sebastian Salas
Tags: Chicago, Ridesharing

The pandemic and ride-hailing apps have transformed the way people move around the city. The introduction of remote working and the lack of tourism in some areas of Chicago have reduced the number of trips and increased the price of ridesharing transportation.

How we move around the city has changed dramatically in the past ten years. One of the main phenomena that have provoked some of these changes has been the rise of ride-hailing apps, which have given new options for citizens to mobilize around cities. The following analysis was made to understand the number of trips and mean prices paid before and after the pandemic. The hypothesis is that the reduction in trips due to COVID-19 has substantially impacted ridesharing prices. A relevant study case to analyze the effect of COIVD-19 in trips and costs is the city of Chicago, which has published datasets that include information about Uber, Lyft, and Via trips.

The following maps show that the number of trips reduced dramatically during the pandemic, frustrating many of the citizens looking for rides during that period. In Chicago, the number of rides haling trips has rebounded from the low number of riders experienced during the pic of the pandemic. However, there is an increase in the prices that have not returned to what was considered normal during pre-covid times. One of the possible explanations for this increase in prices is that there is an apparent mismatch between the demand and offer of trips where the increase in demand for rides has outpaced the availability of cars making trips. The maps also reflect that there is a difference in price and trips changes between neighborhoods. There has been a more dramatic decline in the number of trips in more central areas and some peripheries and, therefore, an increase in prices.

In the maps, we can also observe that one of the city areas where the prices of trips has increased is the Chicago business district. One of the causes that can explain this situation is the number of workers not returning to the offices since the pandemic has not returned to pre-covid levels. The prices of trips done from the business district in September 2019 is higher than that in September 2020. The decline in trips and increase in prices is a phenomenon that can also be attributed to the fact that the business district in Chicago is a tourist attraction. The pandemic has impacted the tourism industry, and therefore, it can be a direct cause of the reduction of trips and the increase in prices in this area.

Another relevant factor that could be causing the shortage of available Uber/Lyft drivers is that workers who qualified for unemployment benefits or other economic incentives from the state have not come back to work. This situation is the case for drivers who have decided to move to another job or come back after the stimulus is over.

It is not clear that the shortage of trips and increase in prices will be temporary. Multiple reasons could imply that the lower number of trips and its effects on prices remain high. The changes in the way people work and how often they go to the office can permanently impact pricing in certain areas. Customers are getting used to the new pricing and are willing to pay more over the long term, which can permanently affect prices in the industry.