Uber increases gas prices by adding a surcharge

It is becoming more difficult to get a ride, and this applies not only to drivers who drive their own cars. 

12 March 2022 Saturday 10:28
62 Reads
Uber increases gas prices by adding a surcharge

Uber has announced that it will increase the per-trip surcharge to both drivers and riders, in response to rising gas prices.

"We know that drivers and couriers are feeling pain from record-high fuel prices at the pump," Liza Winship (head of driver operations in the U.S., Canada) said in a statement. "The consumer surcharge will be applied to every ride or delivery. It will vary depending on where you are located, with 100% going directly towards drivers and couriers.

The Uber Eats company will charge $0.45 to $0.55 per ride, $0.35 to $0.45 per delivery and $0.35 to $0.45 per ride depending on how long the trip is and the gas prices in each country. Except for New York City, which saw a rise in drivers' salaries on March 1, and where most delivery workers are bicycle-trained, the surcharge will be applied everywhere. There has been no decrease in active drivers.

U.S. gasoline prices reached a record high average price of $4.33 per gallon Friday. This is higher than the nationwide record average of $4.17 per gal set on Thursday. According to the company, the surcharge won't cover all the cost of gasoline.

Experts said that gas prices reached their highest level since 2008 this week. Prices fell as Americans stayed at home, which led to a drop in gas demand. Post-pandemic, prices rose again as states and cities dropped lockdowns and removed mask mandates. After Russia's invasion in Ukraine, which disrupted global markets, President Biden banned imports from Russia of oil and gas, pushing prices higher.

Uber drivers use hybrid vehicles four-times more than average American drivers. According to Uber, the company offers $1 per trip financial incentives for electric vehicles, and has negotiated deals with drivers for charging and electric vehicles.

Winship stated, "Importantly we're also seizing the moment to bolster our efforts for helping drivers make the switch from electric vehicles to their cars,"

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