An Uber sign on a car at Oakland International Airport in Oakland, California, USA on Tuesday, February 8, 2022
David Paul Morris | Bloomberg | Getty Images
Uber is adding a surcharge to fares and shipping in the US and Canada in response to rising gas prices, the company said on Friday.
Riders who ride with Uber will pay a commission of $0.45 to $0.55 per ride, while Uber Eats deliveries will include an additional fee of $0.35 to $0.45, the company said. The fee is temporary and will last at least two months.
The company said the fees would go to drivers who are responsible for paying for the gas they use.
Surcharges may vary depending on travel distance and gas prices in each state. They won’t apply in New York as drivers have already received a 5.3% pay rise since March 1 to take into account higher gas costs, Uber said.
The move comes as gas prices across the country are at record highs and energy prices are skyrocketing due to Russia’s war in Ukraine. A US gallon of gasoline averaged $4,009 on Sunday, the highest since 2008, according to AAA data.
“While revenues on our platform remain strong compared to historical trends, the recent surge in gasoline prices has impacted taxi drivers and couriers. To ease the load, we are implementing a temporary fuel surcharge.” — Lisa Winship, Head of Driver, Uber for the US and Canada, the blog post said Friday.
Drivers were reportedly frustrated by the high cost of gasoline, which some say is pushing their real wages below the minimum wage. But Uber says gasoline costs make up less than 10% of a driver’s total income, and that’s not significantly different from last year. On Friday, Uber said it had seen no decrease in the number of drivers in the past two months.
On Friday, Uber said it was encouraging its drivers to use electric vehicles, and drivers could earn $4,000 more a year for switching to an electric vehicle. Uber has warned that its surcharge policy could change in the coming months depending on gas prices.