Uber Adds Fuel Surcharge As Prices Skyrocket
Hannah Smith
Featured Image Credit: Alamy
Uber has introduced a fuel surcharge amid a sharp rise in fuel prices following Russia's invasion of Ukraine.
The charge, which applies to riders and Uber Eats customers in the United States, will cost between $0.35 and $0.55 per trip, and will go directly to drivers to help them cope with the increasing cost of petrol.
'We know that prices have been going up across the economy, so we’ve done our best to help drivers and couriers without placing too much additional burden on consumers,' an Uber spokesperson said in a statement announcing the move.
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'Over the coming weeks we plan to listen closely to feedback from consumers, couriers and drivers. We’ll also continue to track gas price movements to determine if we need to make additional changes.'
According the The Verge, the charge will be based on location and the miles driven as part of the ride, and will also apply to passengers in electric vehicles.
Crude oil and gas prices have soared to record highs over recent weeks, driven in part by increased demand as much of the western world emerges from the Covid-19 pandemic, and in part due to supply issues caused by Russia's invasion of Ukraine and subsequent sanctions.
Russia is a major global supplier of oil and gas, leaving governments and businesses around the world scrambling to deal with the economic fallout of cutting ties with Russian industry.
Drivers working for Uber and other rideshare companies are especially vulnerable to the increases, as most pay for their fuel themselves out of the money they receive for each journey. EnGadget reports that the fuel increases have meant that in many cases drivers are now earning below minimum wage, and that as a result some have chosen not to work at all rather than face making a loss after fuel costs are taken into account.
In its statement, Uber said it would reassess the prices in 60 days time, and said that it planned to 'continue to track gas price movements' to see if any further actions needed to be taken. The surcharge will not apply in New York City, where Uber drivers have already negotiated floor pay.
The company also said that it was 'seizing the moment' to use fuel price increases to encourage drivers to make the switch from petrol to electric vehicles.
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