Uber adds fuel surcharge, citing high gas prices
S E E D E D C O N T E N T
The company said the fees will go to drivers, who are responsible for paying for gas they use.
The surcharges can vary based on trip distance and gas prices in each state. They won't apply in New York City because drivers already received a 5.3 percent pay increase on March 1, accounting for the increase in gas costs, Uber said.
"While earnings on our platform remain elevated compared to historical trends, the recent spike in gas prices has affected rideshare and delivery drivers. To help reduce the burden, we are rolling out a temporary fuel surcharge," Liza Winship, Uber's Head of Driver Operations for the U.S. and Canada, said in a blog post on Friday.
The move comes as the gas prices around the country are hitting all-time highs and energy prices are skyrocketing following the Russian invasion of Ukraine.
President Joe Biden announced Tuesday that the U.S. would ban all imports of Russian oil, gas and energy, saying the move would deal a blow to "Putin's war machine."
Gas prices went up Tuesday to $4.17 for a gallon of unleaded, breaking the previous record of $4.10 set in July 2008, according to AAA.
Uber says that gas costs are less than 10 percent of total driver earnings, and that hasn't materially changed from a year ago. Uber said on Friday that it has not seen a decrease in drivers in the past two months.
The company said it is encouraging its drivers to use electric vehicles, and drivers can make as much as $4,000 more per year for switching to an electric vehicle. Uber warned that its surcharge policy could change in the coming months depending on gas prices.
Tags
Who is online
449 visitors
No surprise - it was inevitable.
Yep, it was inevitable. I don't fly anymore but I suspect airlines will be bringing back the fuel surcharges as well. One area I do expect to get hit on.. I expect Vegas hotels / casino's to re-implement their electric surcharge soon as the price of electricity is also going up.
There have been FSC in the trucking industry on and off for years, it was inevitable.
According to my local news, the surcharge is like a half a buck but did not say if that is a flat rate or per mile.
Door Dash is giving its dashers pre paid gas cards to help out and not passing on the cost to the customers. Respect to them for that.