--- title: How is fraud changing for ridesharing apps? date: 2022-02-01T14:07:00+00:00 author: Grace Proctor canonical_url: "https://www.ravelin.com/blog/taxi-cab-ridesharing-apps-industry-pulse-challenges-fraud-risks" section: Blog --- Blog /[Payments & payment fraud](/resources?search=&category%5B0%5D=189241#resourceContainer "Go to Payments & payment fraud"), [Refund abuse](/resources?search=&category%5B0%5D=204631#resourceContainer "Go to Refund abuse"), [Supplier fraud](/resources?search=&category%5B0%5D=208594#resourceContainer "Go to Supplier fraud"), [Promo abuse](/resources?search=&category%5B0%5D=244453#resourceContainer "Go to Promo abuse") # How is fraud changing for ridesharing apps? Taxi/cab apps, you’ve had a bumpy ride since the start of the pandemic. But what are your top challenges today? Get the latest ridesharing app insights and fraud statistics here. 01 February 2022 ![How is fraud changing for ridesharing apps?](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_blogSmall/134094/Taxi-app-infographic-image.webp) Globally, ridesharing apps are taking over the taxi/cab industry. In the US, [a quarter of customers](https://policyadvice.net/insurance/insights/ride-sharing-industry-statistics/) use taxi/cab apps once a month or more, and UK users will reach [18.8m by 2026](https://www.statista.com/outlook/mmo/mobility-services/ride-hailing-taxi/united-kingdom). But with fast growth comes massive fraud risk. Not only is your taxi app a lucrative target, but your business is likely to rapidly outgrow your fraud prevention defenses, giving fraudsters a head start. Let’s take a closer look at the wider challenges facing your industry and how they impact your fraud risks… ## Demand for rides outpaces supply of drivers Post-lockdowns in 2020, demand for ridesharing rebounded stronger and [faster than taxi/cab apps anticipated](https://www.washingtonpost.com/technology/2021/05/07/uber-lyft-drivers/). Hygiene-conscious customers wanted alternatives to public transport to reduce virus transmission. And many public transport operations reduced their services due to staffing shortages. So ridesharing apps became a lifeline. But drivers were scarce. There were [22% fewer on the road in Q1 2021](https://knowledge.wharton.upenn.edu/article/high-prices-long-wait-times-whats-ahead-for-uber-and-lyft/) compared to the same period in 2020. During initial lockdowns, many drivers [moved to food delivery marketplaces](https://www.cnbc.com/2021/09/27/uber-and-bolt-struggle-to-meet-demand-in-the-uk.html) to find work. So taxi/cab apps had to offer [record-breaking wages](https://www.businessinsider.com/uber-and-lyft-promise-higher-earnings-to-recruit-drivers-2021-8?r=US&IR=T) and incentives to win back employees. Greater demand than supply meant customers faced surge pricing, long wait times and cancellations. In some major cities, the price of rides [jumped a huge 79%](https://knowledge.wharton.upenn.edu/article/high-prices-long-wait-times-whats-ahead-for-uber-and-lyft/) compared to pre-pandemic. This was damaging for the reputation of ridesharing apps, but also created a market for risky rides - if your customer couldn’t get a lift through your app they could turn to a fraudster’s site for service. ## Driver fraud is spreading and it’s hard to stop [Driver fraud](https://www.ravelin.com/blog/what-is-marketplace-supplier-fraud-and-how-can-you-stop-it) is a growing problem. It ranges from your drivers taking advantage of your incentives to those participating in organized crime schemes. Driver policy abuse is spreading, as taxi/cab apps [increase incentives](https://knowledge.wharton.upenn.edu/article/high-prices-long-wait-times-whats-ahead-for-uber-and-lyft/) to attract employees. The more bonuses on offer, the more drivers can gain from cheating the system. In China, some drivers found a loophole that meant they could [triple their earnings](https://medium.com/@sukysmartyn/how-ride-sharing-business-is-fighting-fraud-a33bfb55f745)! You can’t blame otherwise good drivers for trying to make extra cash - most aren’t malicious fraudsters. And the last thing you want to do is limit your pool of drivers, so it’s [a difficult problem to tackle](https://www.ravelin.com/blog/join-the-dots-between-suppliers-and-customers-to-stop-marketplace-fraud). It’s also hard to detect. It could be happening to your business, you just don’t know it yet… ## Ridesharing app accounts are the priciest on the dark web Account takeovers are one of the biggest threats to ridesharing apps. Taxi/cab account logins are the [priciest on the dark web](https://www.csoonline.com/article/3059461/uber-fraud-scammer-takes-the-ride-victim-gets-the-bill.html), even more expensive than Netflix logins and credit card details. And as demand grows, attacks will only increase. Your business should be on high alert. Read on for the latest statistics on how these top challenges and fraud risks are impacting your industry… ![](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/081-Infographics-TAXI.png) #### Upskill your team with the best available data & tools to tackle fraud in 2022 If you'd like to hear more about how Ravelin can help your business, click below for details. [Learn more](https://www.ravelin.com/marketplace) #### Source list - [Taxi/cab app projected market value](https://www.businessofapps.com/data/taxi-app-market/) - [22% fewer drivers in the first quarter of 2021 YoY](https://knowledge.wharton.upenn.edu/article/high-prices-long-wait-times-whats-ahead-for-uber-and-lyft/) - [$250 million investment in driver incentives](https://knowledge.wharton.upenn.edu/article/high-prices-long-wait-times-whats-ahead-for-uber-and-lyft/) - [79% jump in price of rides compared to pre-pandemic](https://knowledge.wharton.upenn.edu/article/high-prices-long-wait-times-whats-ahead-for-uber-and-lyft/) - [Driver pay jumped by 37%](https://www.npr.org/2021/08/07/1025534409/lyft-and-uber-prices-are-high-wait-times-are-long-and-drivers-are-scarce?t=1635515378711) - [Drivers are earning more than $35 an hour](https://www.businessinsider.com/uber-and-lyft-promise-higher-earnings-to-recruit-drivers-2021-8?r=US&IR=T) - [Logins more expensive than credit cards or Netflix](https://www.cnbc.com/2016/01/19/stolen-uber-accounts-worth-more-than-stolen-credit-cards.html) - [Ridesharing most revenue generated in China](https://www.statista.com/outlook/mmo/mobility-services/ride-hailing-taxi/united-kingdom) - [Number of UK users expected to reach 18.8m by 2026 ](https://www.statista.com/outlook/mmo/mobility-services/ride-hailing-taxi/united-kingdom) - [Taxi/cab app logins priciest on the dark web](https://www.csoonline.com/article/3059461/uber-fraud-scammer-takes-the-ride-victim-gets-the-bill.html) - [Drivers triple earnings](https://medium.com/@sukysmartyn/how-ride-sharing-business-is-fighting-fraud-a33bfb55f745) ## Author ![Grace Proctor](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_avatarSmall/91140/fraud-copywriter.webp) Grace ProctorContent Writer (Ravelin alumna) Grace has previously served at Ravelin as a Content Writer. [More from this author](https://www.ravelin.com/author/grace-proctor) ## Related content [Blog / Payments & payment fraud ### Card payment liability shift – everything you need to know to reduce chargeback burden The knowledge you need to make the most of liability shifts and reap the benefits for your company – including saving money on chargebacks. ![Freddie burgess](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/281707/freddie-burgess.webp)Freddie Burgess,Senior Product Support Analyst](https://www.ravelin.com/blog/card-payment-liability-shift-for-chargebacks) [Blog / Fraud analytics ### Refund abuse KPIs: How to measure and reduce refund fraud rates What you need to know to assess and quantify refund abuse – as well as to measure whether your refund abuse solution and strategy are delivering results. ![Can](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/280078/can.webp)Can Colak,Senior Product Manager](https://www.ravelin.com/blog/how-to-measure-refund-abuse-kpis) [Blog / Press release ### Driven by AI, customers now rival criminals for ecommerce fraud, say merchants Global ecommerce fraud enters a new phase as losses continue to climb. 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