Uber has announced that it will increase the price of fares and delivery in the U.S.A and Canada to address rising gas prices.
Uber riders will be charged $0.45 to $0.55 per ride, while Uber Eats delivery will cost $0.35 to $0.45. These fees will be temporary and last at most for two months.
According to the company, the fees will be paid by drivers who will have to pay for the gas they use.
Based on the state and trip distance, surcharges may vary. Uber stated that they won't apply to New York City drivers because they already received a 5.3 per cent pay raise on March 1st, accounting for the rise in gas prices.
While earnings on our platform are still high compared to historical trends," said Liza Winship, Uber's Head of Driver Operations for the U.S. and Canada. "The recent spike in gasoline prices has had an impact on rideshare drivers and delivery drivers. We are introducing a temporary fuel surcharge to help ease the burden," Liza Winship (Uber's Head for Driver Operations in the U.S. and Canada) said in a Friday blog post.
This move is coming as the gasoline prices all over the country are at all-time highs, and the energy prices are on the rise following the Russian invasion in Ukraine.
Joe Biden, President of the United States, announced Tuesday that it would prohibit all imports from Russia of oil, gas, and energy. He said the move would be a blow to Putin's war machine.
The gas prices rose to $4.17 per gallon for unleaded gasoline on Tuesday, breaking the record of $4.10 established in July 2008 by AAA.
Uber claims that gas costs make up less than 10% of total earnings for drivers, which hasn't changed significantly from last year. Uber stated on Friday that there has been no decrease in drivers over the past two years.
Uber stated that it encourages its drivers to use electric cars and drivers can earn up to $4,000 per year by switching to electric vehicles. Uber said that it could change its surcharge policy depending on gas prices in the future.