October 6, 2022

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Uber adds fuel surcharges due to higher gas prices

Uber adds fuel surcharges due to higher gas prices

Uber signs on a vehicle at Oakland International Airport in Oakland, California, United States, on Tuesday, February 8, 2022.

David Paul Morris | Bloomberg | Getty Images

Uber The company said Friday that it is adding additional fees to prices and deliveries in the United States and Canada in response to higher gas prices.

The company said that passengers taking Uber trips will pay a fee of between $0.45 and $0.55 per trip, and deliveries on Uber Eats will include $0.35 to $0.45. The fee is temporary and will last for at least two months.

The company said the fee would be paid to drivers responsible for paying for the gas they use.

Surcharges can vary based on flight distance and gas prices in each state. Uber said they would not apply in New York City because drivers already received a 5.3% pay increase on March 1, which is an increase in gas costs.

The move comes at a time when gas prices across the country have reached all-time highs and energy prices are skyrocketing due to Russian war in Ukraine. The average price of a gallon of gas on Sunday is $4,009 in the United States, Highest since 2008According to data from AAA.

“While profits on our platform remain high compared to previous trends, the recent rise in gas prices has impacted ride and delivery engines. To help reduce the burden, we are introducing temporary fuel surcharges,” Lisa Winship, Uber’s chief driver operations for the US and Canada, said in a post. Friday blog.

drivers It said Disturbed by the rising cost of gas, which some say has cut their actual wages below minimum wage. But Uber says gas costs are less than 10% of a driver’s total earnings, and that’s essentially unchanged from a year ago. Uber said Friday that it has not seen a decrease in the number of drivers in the past two months.

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Uber said Friday that it is encouraging its drivers to use electric cars, and drivers can make up to an additional $4,000 a year to switch to an electric vehicle. Uber has warned that the surcharge policy may change in the coming months depending on gas prices.