Uber and Amazon Flex drivers protest higher fuel prices and demand more money outside an Amazon warehouse in Redondo Beach, California on March 16, 2022.
Mike Blake | Reuters
On Wednesday morning, about 50 delivery and taxi drivers parked outside an Amazon warehouse near Los Angeles. Signs pasted to their car windows depicted a running skeleton in the form of an Amazon courier carrying a package.
“Working from scratch,” read posters at a rally organized by the Mobile Workers Alliance, a group representing workers in the gig economy. “We cannot afford gas. Tech giants, pay up.”
A caravan of contractors has gathered at the Amazon facility, known as FCA2, to urge the online retailer to follow suit from Uber, Lyft, DoorDash and Walmart. In recent days, all of these companies have added fuel surcharges or increased drivers’ wages to offset higher gasoline prices.
Amazon has remained silent on the matter as Russia’s invasion of Ukraine has driven U.S. gas prices to record levels. The national average for regular gasoline was $4.33 a gallon, according to the AAA. It is currently $4.29, up 78 cents from a month ago.
Flex drivers are part of Amazon’s rapidly growing in-house logistics division. The company also relies on a network of contract delivery companies, aircraft, trucks and ships to speed orders to customers’ doors.
Launched in 2015, Flex remains a side job for some workers and has become a major source of income for others. Drivers use their own vehicles to deliver packages to more than 50 cities. They earn between $18 and $25 an hour, depending on the type of shift, and are responsible for expenses such as gas, tolls, and vehicle maintenance.
Kerry Selfridge rides the Flex constantly in Kansas while working to launch her own travel agency. Selfridge has to fill up his tank every day and said the price at the gas station makes it even harder for him to make ends meet.
“My car used to fill up for $25, now it’s approaching $40,” Selfridge said. “I spend $280 a week and have been lucky enough to make $500 to $700 in the same period.”
Selfridge, who has three children, said he had to cut spending on food and entertainment.
Contractors working in the Amazon Inc. program. Flex, loading packages into trucks for delivery to customers in San Francisco.
David Paul Morris | Bloomberg | Getty Images
“I should be able to house and feed them,” Selfridge said. “We are a family that regularly eats expensive meals, but now we are getting used to less expensive things.”
Flex drivers deliver Prime packages, as well as orders for Whole Foods and Fresh groceries, picking them up from Amazon warehouses scattered across the region. Unlike Amazon delivery drivers, who typically make multiple stops in the same area, Flex workers can travel many miles between stops.
Tips are one way to maximize earnings. Flex drivers told CNBC that only deliveries for Whole Foods and Fresh include this option for customers, and those gigs have become harder to find as more drivers search for them.
Jana, a Flex driver in San Francisco who didn’t want to use her full name, said the tip makes driving the Flex worth her time. Lately, she’s noticed fewer opportunities, which means less potential income as her expenses skyrocket.
Yana bought a Toyota Prius in 2018 to increase her shipping mileage. With San Francisco gas prices topping $5.90 a gallon, “it feels like I don’t even drive a hybrid anymore,” she said.
Competing for higher wages
Basic pay on Flex is approximately $18 an hour. Amazon sometimes offers increased rates or inflated prices to encourage drivers to choose a shift. Burst blocks are usually in high demand and can pay up to $35 an hour.
Just as drivers gravitate toward orders that include tips, they also flock to higher-paying shifts, increasing competition among Flex workers.
“I’m not taking any base pay right now,” said Scott Düringer, a part-time Flex driver in Fort Lauderdale, Florida. “Only overpriced blocks. But there are few of them.”
An Amazon spokesperson said in an email that the company is “monitoring the situation closely” and listening to drivers’ concerns.
“We have already made several adjustments through sharp price increases in the affected areas to alleviate some of the financial concerns,” the spokesman said. “As the situation evolves, we will continue to make changes where we can to support our partners.”
Amazon Flex driver Katherine Kot (pictured far left) and her daughter attended Wednesday’s rally to urge Amazon to raise wage rates as gas prices continue to rise.
Mobile Workers Alliance
Meanwhile, some Flex drivers are taking jobs from Uber, DoorDash or Instacart because they can have shorter routes that require less fuel. Last week, Uber added a surcharge of up to 55 cents per ride and 45 cents for Uber Eats delivery to help drivers cope with higher fuel costs. A similar announcement followed Lyft.
Laura Chelton, from Seattle, said she has given up on Flex entirely and returned to full-time babysitting. Some former colleagues are also leaving because, when it comes to the economic aspects of the job, “it just doesn’t work,” Chelton said.
Catherine Cote, who attended Wednesday’s rally, relies on income from Flex and other delivery services to care for her two young children and support family members in Venezuela.
Kote, a single mother, brings in between $140 and $150 a day from Flex and says half of her salary is spent on gas. On top of that, 40 years of high inflation means she’s paying more for all her other essentials.
“Now I have no savings because everything is more expensive,” said Kot. “So it’s really tough for every rider at the moment.”
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