Benzinga | Aug 31, 2021 12:46PM EDT

Driver Crisis Continue To Weigh On Uber, Lyft: CNBC

* An acute driver crisis jeopardizes the ride-hailing businesses of Uber Technologies (NYSE:UBER) and Lyft Inc (NASDAQ:LYFT), raising questions on its business model sustainability, CNBC reports.

* The cost per ride shot up 92% between January 2018 and July 2021.

* Many riders are facing higher wait times for the rides. The ride-hailing companies' drivers were 40% understaffed in early July.

* The companies continue to invest heavily in bonuses and base rates to bring back the drivers. A driver alleged inhuman treatment who made only $85 for 12 hours during the slowdown.

* The drivers solely relying on ride-sharing platforms do not seem to be earning enough for a living. A driver who switched to food delivery made 200 bucks a day by driving like a quarter of the miles.

* Uber lost $6.77 billion in 2020 and $8.51 billion in 2019. Lyft lost $1.75 billion in 2020 and $2.60 billion in 2019.

* Uber had introduced a $250 million driver stimulus, while Lyft has invested in more driver bonuses and incentives.

* Price Action: LYFT shares traded higher by 0.93% at $47.57, while UBER shares traded lower by 0.15% at $39.53 on the last check Tuesday.