Uber adds fuel surcharge because of high gas prices

Uber sign on a vehicle at Oakland International Airport in Oakland, California, U.S., on Tuesday, February 8, 2022.

David Paul Morris | Bloomberg | beautiful pictures

Uber The company said on Friday it was adding a surcharge to fares and deliveries in the US and Canada in response to rising gas prices.

Uber riders will be charged a fee of $0.45 to $0.55 per ride, and Uber Eats deliveries will include a $0.35 to $0.45 surcharge, the company said. said. The fees are temporary and will last for at least two months.

The company says the fee will be on the driver, who is responsible for paying for the gas they use.

Surcharges may vary depending on trip distance and gas prices in each state. They won’t apply in New York City because drivers received a 5.3% pay raise on March 1, leading to an increase in gas costs, Uber said.

The move comes as gas prices across the country are hitting an all-time high and energy prices are skyrocketing due to Russia’s War in Ukraine. On Sunday, a gallon of gas costs an average of $4,009 in the US, highest since 2008according to data from AAA.

“While earnings on our platform are still up against historical trends, the recent spike in gas prices has impacted sharing and delivery drivers. To help ease the burden, we’ll introduced a temporary fuel surcharge,” Liza Winship, Uber’s Head of Drivers for the US and Canada, said in a blog post on Friday.

Drivers have reported Disgusted by the high cost of gasoline, some claim to have lowered their effective wages below the minimum wage. But Uber says that the cost of gas is less than 10% of a driver’s total income, and that hasn’t changed significantly from a year ago. On Friday, Uber said it has not seen a drop in driver numbers in the past two months.

On Friday, Uber said it was encouraging its drivers to use electric vehicles, and that drivers could earn an extra $4,000 a year if they switch to electric vehicles. Uber warned that its surcharge policy could change in the coming months depending on gas prices.

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