Uber Adds Fuel Surcharge in US, Canada Amid Spike in Gas Prices

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Uber Technologies Inc. announced on Friday a temporary fuel surcharge will be added from March 16 on fares and deliveries in the United States and Canada in response to surging gas prices.

“Many people are feeling the sting of record-high prices at the pump—and that’s certainly true of drivers and couriers,” the company said in a statement. “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.”

Riders taking an Uber in the United States will have to pay a surcharge fee of $0.45 to $0.55 per trip, while a $0.35 or $0.45 consumer fee will be added to each Uber Eats order, depending on their location. The money charged will go directly to the workers, who are responsible for paying their own gas.

The surcharges can vary based on trip distance and gas prices in each state, Uber said, adding that 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.

The new measure will last for at least 60 days, after which Uber will make adjustments based on feedback from workers and customers.

In Canada, also starting on March 16, rideshare riders will pay a $0.50 surcharge on every ride and, on Uber Eats where trips are shorter, consumer fees will be adjusted to cover the equivalent of a $0.35 surcharge on every delivery, Uber said in a separate statement.

Many drivers working for Uber have expressed frustration on social media over high gas costs that have had an impact on their earnings, even as the company raised its profitability outlook. Some drivers have asked if it was still worth getting behind the wheel.

The move comes as the average price for a gallon of gas in the United States is now $4.32, according to the American Automobile Association (AAA). That breaks the previous record of $4.11 a gallon that has stood since July 2008.

Uber said the company is seizing this moment to encourage drivers to switch to electric vehicles (EV), and drivers can make as much as $4,000 more per year for using an EV.

“Our latest partnership with Hertz will make up to 50,000 fully electric Teslas available for eligible drivers to rent by 2023,” Uber said. “This is the largest expansion of EVs on a mobility platform in North America, marking another step towards Uber’s zero-emissions goal.”

From NTD News

Lorenz Duchamps

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