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

By Lorenz Duchamps
Lorenz Duchamps
Lorenz Duchamps
March 12, 2022 Updated: March 13, 2022

Uber Technologies announced on March 11 that a temporary fuel surcharge will be added on fares and deliveries in the United States and Canada in response to surging gas prices, starting on March 16.

“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 45 cents to 55 cents per trip, while a 35- or 45-cent 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, according to Uber. The company noted that they won’t apply in New York 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 50-cent surcharge on every ride, and on Uber Eats, where trips are shorter, consumer fees will be adjusted to cover the equivalent of a 35-cent 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 effect on their earnings, even as the company has raised its profitability outlook. Some drivers have asked if it’s 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 AAA. That breaks the previous record of $4.11 per gallon that had stood since July 2008.

Uber stated that the company is encouraging drivers to switch to electric vehicles (EV) and that 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,” the company stated. “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