Daily Management Review

Uber Imposes A Fuel Surcharge In The US And Canada In Response To Fuel Price Hike


Uber Imposes A Fuel Surcharge In The US And Canada In Response To Fuel Price Hike
The soaring cost of fuel is about to bite Americans.
Uber, the ride-hailing firm, has stated that in order to account for rising gasoline prices, it would impose a fuel surcharge on fares and deliveries for its users in the United States and Canada.
Uber users in the two nations will now have to pay an additional cost of between $0.45 and $0.55 for each trip, with a premium of $0.35 to $0.45 for using Uber Eats, according to the firm.
The company has also indicated, however, that the price increases are just temporary and will last for at least two months.
Drivers will be charged higher rates because they are the ones who pay for the petrol used in their automobiles and tow trucks.
The fuel surcharge would be determined by the distance travelled and the price of gasoline in each state. However, Uber stated that the raised charges would not apply in New York City since Uber drivers had already received a 5.3 percent pay raise beginning March 1 due to rising gasoline prices.
This is the first time a ride-hailing business has raised costs in reaction to rising global gasoline prices, which are nearing all-time highs as a result of Russia's invasion of Ukraine and the resulting worldwide fuel supply disruption.
According to AAA data, the average price of a gallon of petrol in the United States was $4.009 on Sunday, the highest since 2008.
“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.
According to reports, Uber drivers have been complaining about rising gas costs, claiming that the price surge has decreased their effective pay to less than the minimum wage in the United States. However, according to Uber, gas expenses account for less than 10 per cent of a driver's overall earnings, therefore the increase in gas prices has had no substantial impact on their salaries from a year ago.
Uber confirmed on Friday that drivers' remuneration had not decreased in the previous two months.
Uber's drivers are also being pushed to utilise electric cars, with the business claiming that switching to electric vehicles may earn drivers up to $4,000 extra per year.
The ride-hailing business also warned that fluctuating gas costs may force it to change its pricing policy in the coming months.