Sharjah24 - Reuters: A return to business as usual for Uber Technologies Inc and its rival Lyft Inc has thrown up a new challenge to the ride-hailing firms looking for profitability - spend more to bring back drivers to meet the rising demand for rides.

Between the two, their spending plans have differed.

Uber shelled out $250 million in the second quarter and has now begun cutting back as it added more hands behind the wheels, while Lyft has decided to keep spending into the third quarter.

With trip demand so far outpacing driver supply, the ride-hail businesses risk alienating returning customers with higher prices and longer wait times if drivers fail to show up in big numbers.

Labor shortages have widely hampered an economic recovery in the United States, with the service industry struggling the most to find staff as enhanced U.S. jobless benefits, which are set to phase out in September, keep away workers for now.

"Despite the smaller pool of drivers available today, the benefits cliff in September is something Uber and the industry will benefit from," Angelo Zino, analyst at CFRA Research said.