Uber and Lyft add fuel surcharge amid rising gas prices
Editor's Note
The next time you ride Uber or Lyft or order from Uber Eats, you may notice the price is higher, thanks to both companies adding fuel surcharges to their fares in hopes of helping drivers offset the cost of rising fuel prices.
Starting tomorrow, each Uber ride will include an extra 45 or 55 cents as a surcharge, depending on the location and Uber Eats deliveries will also include an extra 35 or 45 cents, with 100% of this money going directly into workers' pockets.
As of March 15, Lyft will also be issuing a temporary surcharge for rides in the coming days, per reporting by various outlets.
Gas prices surging
The decision to add these surcharges come as fuel prices have soared nationally (and internationally) in the midst of Russia's invasion of Ukraine, which has had a profound impact on the global oil supply chain, prompting questions over what this will mean for prices and fees throughout the travel industry.
Related: Fuel costs aren't the only reason you may want to book trips now
As of March 15, the average price for a gallon of regular gas stood at $4.32, according to AAA data, up 24% compared to a month ago. Compared to a year ago, a gallon of gas is 52% more expensive. In California, an average gallon of regular gas now costs $5.75, per AAA.
In a statement issued on Friday, Uber acknowledged rising fuel prices, and said the added surcharges are a way to help its drivers "without placing too much additional burden on consumers."
Related: Maximize your trips on Uber by earning rewards
"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," said Liza Winship, Uber's director of driver operations in the U.S. and Canada.
Lyft has not yet commented on its decision to follow suit and has yet to release details on when exactly the charges will be appearing and how much they will be.
Bottom Line
The decision by both Uber and Lyft comes as travelers wait to see what type of impact rising oil prices will have on all sectors of the industry — from airfare to cruises. Royal Caribbean told TPG this week that it does not plan to add fuel surcharges even as gas prices surge.
Related: How to save hundreds on food delivery
Uber noted that it will not add the surcharge to Uber or Uber Eats fares in New York City, as drivers there received pay increases earlier this month. The "vast majority" of Uber Eats delivery workers use bicycles, not cars, the company added.
Additional reporting by Caroline Tanner.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.