Uber heeding driver calls for help to counter soaring gas prices
Uber driver says company's temporary surcharge 'definitely not enough'
Uber, Lyft driver details current struggles amid record gas prices
Chris Gerace, a part-time Uber and Lyft driver, argues that the temporary surcharge Lyft and Uber are providing in an effort to help drivers account for the higher cost is not enough.
App-based ride-hailing platform Uber told FOX Business on Friday it is considering taking further action to help the company’s drivers, who are feeling the pinch of higher gas prices and are reportedly contemplating quitting amid the inflationary pressure.
Speaking on "Cavuto: Coast to Coast" on Friday, Chris Gerace, a part-time Uber and Lyft driver, said the fuel surcharge Uber has been implementing to help drivers account for the increased price of gas is "definitely not enough." Lyft and Uber drivers typically pay for their own gas.
"We’ll continue to listen to feedback and may make changes in the future," an Uber spokesperson told FOX Business on Friday, responding to the calls from drivers for more help.
Last month, Uber said it was starting to implement a temporary 45 or 55 cent per-trip surcharge on Uber rides and a 35 or 45 cent per-order surcharge on Uber Eats for the next two months to soften the burden of higher gas prices. Uber noted that the surcharge varies because it is based on the average trip length and the rise in gas prices in each market.
Uber and Lyft logos in a car window. (AP)
The company also noted that it will continue to monitor gas prices and could make adjustments based on driver and consumer feedback.
Liza Winship, head of driver operations in the U.S. and Canada said in a statement, "We know drivers and couriers are feeling the sting of record-high prices at the pump, so we’re rolling out a temporary fuel surcharge to help."
"This consumer surcharge will apply to each ride or delivery and will vary by location, with 100% going directly to drivers and couriers," she continued, emphasizing that "this temporary measure will help ease the burden."
Recently, gas prices have reached historic levels amid soaring inflation in the wake of the pandemic and Russia's war on Ukraine.
UBER, LYFT DRIVERS CONSIDER QUITTING AS PAIN AT THE GAS PUMP GROWS
The national average for gas was $4.22 on Friday, slightly lower than the day before and $1.34 higher than the year before, according to AAA.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND L.P. | 75.92 | -0.01 | -0.02% |
| BNO | UNITED STS BRENT OIL FD LP UNIT | 31.09 | +0.09 | +0.27% |
The U.S. oil benchmark fell on Friday ahead of a meeting of consuming nations to discuss a new release of emergency oil reserves alongside the release announced by the U.S. Brent crude, the international benchmark, was trading slightly higher on Friday afternoon.
Soaring gas prices causing Uber, Lyft drivers to consider quitting
Chris Gerace, a part-time Uber and Lyft driver, weighs in on higher gas prices and the impact on rideshare drivers.
Gerace told host Neil Cavuto on Friday that Uber and Lyft "are doing a surcharge for passing along some fuel as help to drivers."
"But when you’re out on the road, it might help on the short-term trips like in the cities, but if you’re taking a couple long trips or anything like that then it’s pretty much null and void," he continued. "It does help a little bit, but it’s definitely not enough."
Lyft also reportedly announced a 55-cent per-ride surcharge last month that would be paid directly to drivers, in response to record gas prices because of the conflict overseas.
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A survey of over 300 drivers conducted by a popular blog followed by drivers called the Rideshare Guy revealed that about 15% had already quit driving and nearly 40% were driving less frequently, Reuters reported last month.
In response to FOX Business’ request for comment, a Lyft spokesperson pointed to a blog post, which includes ways the company is trying to help drivers with the increased cost of gas.
The company noted its internal analysis revealed that as of early March, drivers nationally are spending on average 75 cents more on gas per hour compared to the same time last year, but that even with the increased cost, drivers across the country are still earning more per hour on average than they were one year ago.
Lyft also said that the company has not experienced a drop in drivers on the platform or a decline in the number of hours they work when comparing March to January data.