I commute with Uber and Lyft, and it has been hell during the pandemic to get a ride. Wait times of over half an hour are typical. I've ridden with some Lyft employees (They work for Lyft but also drive) and they told me that it's a combination of many factors.
- Less demand means that drivers don't think they can make a lot of money to make it worth their time. This has caused the supply to fall faster than the demand. I was told that the trick to getting a ride was to try to request the rides around the time of hospital shift changes, as that's when the supply increases from a perceived demand.
- Unemployment. Part time drivers with other jobs are most likely furloughed at this time, and are collecting unemployment benefits. Since the pandemic unemployment compensation program adds $600 a week on top of their regular unemployment, there's no incentive to go out and risk their health to drive. Full time drivers are also eligible for pandemic unemployment benefits in some states, so if they can get by on that, then they will, instead of going out to risk their health driving. If they can't get by on that, they can collect the benefit while still driving.
- Due to some government systems being down during the early months of the pandemic, Uber and Lyft were not able to run background checks. Drivers who did not have their background check before the shutdown weren't allowed to drive, and drivers who were allowed to drive while their background check was in progress were deactivated.
I'm curious to see what happens in a couple weeks when the Federal Pandemic Unemployment Compensation (as part of the CARES Act) ends.