Uber has announced it is adding in a fuel surcharge as a result of rising fuel costs.
Users in the US and Canada will feel the pinch initially, having to pay fee of $0.45 to $0.55 per trip, with Uber Eats deliveries also including a $0.35 to $0.45 surcharge, the company said.
The ride-hailing company added that fees are temporary and will last for at least two months as the conflict
The company said that the fees will go to drivers, who are responsible for paying for fuel they use.Uber has said that charges can vary on trip distance and gas prices in each state, however they will not apply in New York City because drivers and couriers already received a 5.3% pay increase on 1 March, accounting for the increase in gas costs.Fuel prices around the country have hit an all-time high as a result of the Russian invasion of Ukraine.
On Sunday, a gallon of fuel cost $4.009 on average in the US, which is 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,” Uber head of driver operations for the US and Canada Liza Winship said in a blog post on Friday.
Uber drivers have previously expressed dissatisfaction over the high cost of gas, which some say have reduced their effective wages to less than minimum wage.
However the company disputes the claims and says that fuel 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.
The ride-hailing giant is attempting to encourage its drivers to use electric vehicles. It claims that 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 fuel prices.
Source: chargedretail.co.uk | George Iddenden