Auto Rental News
MenuMENU
SearchSEARCH

Rideshare Expected to Struggle Post Pandemic

According to a CarGuru's study, 28% of respondents said they expect to use taxis or ridesharing services less, and 11% expect not to use the services at all.

by Jennifer Bradley Franklin
September 14, 2020
Rideshare Expected to Struggle Post Pandemic

Both United States rideshare giants — Uber and Lyft — have reported double-digit year-over-year declines in ridership.

Photo via Uber.

4 min to read


The pandemic has altered almost every conceivable “norm,” from working from home to shopping with a mask. The rideshare industry has been particularly impacted, with once-regular riders no longer needing transportation to and from the airport, meetings and social events.

Before COVID-19 upended the way we live, Brooklyn-based writer Aly Walansky was a self-described UberPool “addict.” She would use Uber’s carpooling service — in which she would share a ride with a few extra passengers heading in the same direction— two or three times a week.

Ad Loading...

“Part of my job is dining and drinking,” Walansky says. “I felt safer at night after a few drinks to take an Uber home, rather than taking the subway and then doing the 10-minute walk home alone.”

Then the pandemic hit. Even without her own car to get around, she hasn’t booked a ride with Uber since March. Not surprising, perhaps, since the coronavirus has crushed the travel and entertainment industries as cities nationwide shut down nonessential activities and social distancing became a way of life.

Both United States rideshare giants — Uber and Lyft — have reported double-digit year-over-year declines in ridership. And a new CarGurus survey suggests that the fear of hopping into a rideshare driver’s car may not change even when more typical economic activity resumes.

Read on to learn how rideshare services are faring, what the companies are doing to survive and what the future may look like for these services.

The Future of Rideshare Services, Transportation Post-Pandemic

In its second-quarter earnings release, Uber Technologies announced that its gross bookings declined 35% and revenue declined 29 percent year over year for the period ending on June 30. In a filing with the SEC in May, the company revealed plans to reduce its workforce by 3,700 full-time employees, and CEO, Dara Khosrowshahi agreed to forgo his base salary for the remainder of the year.

Ad Loading...

Though ride requests were down, the company experienced growth in Uber Eats, its food delivery division. As of June, more than 500,000 restaurants had signed up to participate worldwide, up 50% from a year ago. And while Uber’s second-quarter 2020 “mobility,” or ride, revenue was off 67% compared with a year ago, its “delivery” revenue rose 103% thanks to Uber Eats, its earnings release said.

Similarly, in the quarterly earnings call on May 6, Lyft CEO Logan Green told participants that in April, rideshare rides were down 75 percent year over year. In April, Lyft launched Essential Deliveries, a pilot program to allow drivers to perform contact-free deliveries of groceries, meals, medical supplies and necessities for rates similar to passenger rides. Still, the company implemented layoffs and furloughs of 1,300 team members and other cost-cutting measures beginning in May.

The ridesharing business is expected to continue to struggle, according to a survey by CarGurus, a global online automotive marketplace.

When economic activity resumes, 28% of respondents said they expect to use taxis or ridesharing services less, and 11% expect not to use the services at all, according to CarGurus’ “US COVID-19 Sentiment Study,” released in July. Among those who are planning to decrease this usage, 49% said they plan to increase the use of their personal vehicle. 

The change in driving behavior may be good for car dealerships and resellers: the CarGurus survey also found that 26% of respondents plan to replace their current vehicle and 17% intend to purchase an additional vehicle for their household.

Ad Loading...

Tips to Keep Srivers, Riders Safe 

Health and safety are top of mind for both drivers and passengers who rely on rideshare services. Many companies have implemented new cleaning and behavior requirements. Lyft’s new Health Safety Program requires anyone in a car to self-certify that they are symptom-free of COVID-19 and wear a face mask. It’s also providing cleaning supplies and masks for drivers and offering health safety education. Uber also requires riders and drivers to wear masks, and in June, it launched a pilot partnership with disinfectant brand Clorox to provide wipes to drivers to be used to disinfectant the vehicle between customers.

In addition to these new company-mandated processes and requirements, individuals should also follow other precautions to keep themselves and others safe. The CDC urges both drivers and passengers to stay home if they’re feeling sick, wash hands before and after each ride, avoid touching their face and unnecessary items (like in-car magazines or water bottles), and regularly clean and disinfect hard, nonporous surfaces. For additional guidelines, visit the CDC’s COVID-19 page dedicated to rideshare, limo, taxi and ride-for-hire drivers.

The Bottom Line

With significant numbers of COVID-19 cases remaining around the world, economic uncertainty and continued concern, only time will tell what the future holds for the rideshare industry and whether it will get back to its pre-pandemic ride volume. Though big industry players are making changes to their business models, such as providing food delivery, and ramping up programs to increase rider confidence and keep drivers busy, some consumers remain tentative.

“It doesn’t feel safe from a germ perspective,” says Walansky, who adds that she might wait until a viable COVID-19 vaccine is available to start riding with Uber again. “I miss it, but I’m just not ready.”

Jennifer Bradley Franklin writes for Bankrate.com.

More Rental Operations

plane, palm trees, car rental sign
Rental Operationsby Chris BrownSeptember 15, 2026

Palm Beach Airport Code Change Creates Car Rental Distribution Gap

A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.

Read More →
Team members of U-Save's new franchise
Rental Operationsby StaffSeptember 15, 2026

U-Save Continues Dominican Republic Expansion with Launch in Punta Cana

The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.

Read More →
A traveler searches for rental cars with an AI bot
Rental OperationsSeptember 14, 2026

When AI Books the Rental Car, Who Controls the Sale?

As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)

Read More →
Ad Loading...
map of europe and summer car rental rates
Rental OperationsSeptember 11, 2026

European Booked Car Rental Rates Fell 5%, Results Varied by Country

Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.

Read More →
thumbnail of Chris Brown and Mike DeLorenzo with title Time to Rethink Rental Categories?
Rental Operationsby Chris BrownSeptember 8, 2026

Is It Time to Rethink Rental Categories?

As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.

Read More →
Woman receiving car rental rates on computer from AI agent
Rental OperationsSeptember 1, 2026

Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental

Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)

Read More →
Ad Loading...
map of globe with regional corporate car rental rates
Rental Operationsby StaffAugust 25, 2026

U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%

Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.

Read More →
Sixt H1 financial results
Rental Operationsby StaffAugust 14, 2026

Sixt Revenue Tops $2.4 Billion in First Half of 2026

Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.

Read More →
Bobby Klyce in memoriam image
Rental Operationsby Chris BrownAugust 13, 2026

In Memoriam: Bobby Klyce, Avis Licensee Legend

The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.

Read More →
Ad Loading...
Vibe coding webinar promo image
Rental Operationsby StaffAugust 12, 2026

How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]

A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.

Read More →
Ad Loading...