In reaction to rising gas prices, Uber is imposing a premium on fares and deliveries in the United States and Canada, the firm announced on Friday.
Uber drivers will be charged $0.45 to $0.55 each trip, and Uber Eats deliveries will be charged $0.35 to $0.45, according to the firm. The fees are only in effect for a period of at least two months.
The fees will be paid by drivers, who are responsible for paying for the petrol they use, according to the firm.
The surcharges can vary depending on the distance travelled and the price of gasoline in each state. They won’t apply in New York City since drivers received a 5.3 percent wage raise on March 1 to account for rising gas prices, according to Uber.
The decision comes as gas prices across the country have reached new highs, and energy prices have risen dramatically as a result of Russia’s war in Ukraine. According to AAA data, the average price of a gallon of gas 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,” Uber’s Head of Driver Operations for the United States and Canada, Liza Winship, wrote in a blog post on Friday.
The high cost of gas has reportedly irritated drivers, who claim that their effective pay have been dropped to less than minimum wage. However, Uber claims that gas costs account for less than 10% of overall driver profits, and that this hasn’t changed significantly from a year earlier. Uber claimed on Friday that the number of drivers has not decreased in the last two months.
Uber announced on Friday that it is encouraging its drivers to switch to electric vehicles, with drivers earning up to $4,000 extra per year for doing so. Uber has cautioned that, depending on petrol costs, its charging policy may alter in the coming months.