As the price of gas in the US and the rest of the world continues to rise, Uber drivers have been protesting on social media. As a response, Uber Technologies has introduced a surcharge of either 45 cents or 55 cents on each Uber trip and 35 cents or 45 cents on each Uber Eats order, depending on their location. This new charge will exclude New York City. According to Uber, the money will go directly to the drivers.
“While earnings on our platform remain elevated compared to historical trends, the recent spike in gas prices has affected ride share and delivery driver,” Uber said in a blog post Friday. “To help reduce the burden, we are rolling out a temporary fuel surcharge.”
The surcharge will go into effect starting from March 16 and will last for 60 days, after which, Uber will readjust the charges based on feedback from drivers and customers.
Due to the ongoing invasion on Ukraine, Western countries have put in oil sanctions on Russian, a major oil producer. As demand continues to outdo supply, there is worry that gasoline prices might continue to rise further. On Friday, the average price of a gallon hit $4. 33 which represents a 50 cents increase compared to a week ago. The State of California seems to be the worst hit as a gallon currently goes for $5.70.
Uber is taking this chance to seize “this moment to bolster efforts to help more drivers make the switch to electric vehicles.” The ride hailing company has a Green Future Program which provides EV drivers with an extra $1 per trip (capped at $4,000 per year) as incentive.
The company did not confirm if the additional charge will be applied to other countries around the world.