- Uber is adding a surcharge on fares and deliveries in the U.S. and Canada in response to surging gas prices, the company said on Friday.
Uber is adding a surcharge on fares and deliveries in the U.S. and Canada in response to surging gas prices, the company said on Friday.
Riders taking Uber trips will pay a fee of $0.45 to $0.55 per trip, and Uber Eats deliveries will include a $0.35 to $0.45 surcharge, the company said. The fees are temporary and will last for at least two months.
The company said that the fees will go to drivers, who are responsible for paying for gas they use.
The surcharges can vary based on trip distance and gas prices in each state. They won’t apply in New York City because drivers already received a 5.3% pay increase on March 1, accounting for the increase in gas costs, Uber said.
The move comes as the gas prices around the country are hitting all-time highs and energy prices are skyrocketing because of the Russian war in Ukraine. On Sunday, a gallon of gas cost $4.009 on average in the U.S., the highest since 2008, according to data from AAA.
“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,” Liza Winship, Uber’s Head of Driver Operations for the U.S. and Canada, said in a blog post on Friday.
Drivers have reportedly been upset over the high cost of gas, which some say have reduced their effective wages to less than minimum wage. But Uber says that gas costs are less than 10% of total driver earnings, and that hasn’t materially changed from a year ago. Uber said on Friday that it has not seen a decrease in drivers in the past two months.
Uber said on Friday that it is encouraging its drivers to use electric vehicles, and drivers can make as much as $4,000 more per year for switching to an electric vehicle. Uber warned that its surcharge policy could change in the coming months depending on gas prices.