Editorial note: This story has been updated
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.
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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.”
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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,” 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.
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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.
