Newsletter
The sharp increase in gas prices has frustrated citizens across the U.S. and neighboring Canada. In light of these developments, Uber has now announced the addition of a fuel surcharge for deliveries and rides on the platform. The company said all of the money generated through this surcharge would go directly to Uber drivers.
“We know that prices have been going up across the economy, so we’ve done our best to help drivers and couriers without placing too much additional burden on consumers. 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,” Uber spokesperson Liza Winship said in a statement (via Engadget).
“Long term, Uber continues to work to encourage drivers and delivery people to make the switch to electric vehicles, which will both limit the impact of the volatility in fuel prices and lower emissions.”
New York City is exempt from Uber’s temporary fuel surcharge
Uber said its new fuel surcharge would differ depending on the state you’re in and the number of miles driven. This translates to an additional $0.35 to $0.45 fee on Uber Eats deliveries and $0.45 to $0.55 per Uber trip. These new charges won’t apply in New York City, where cab drivers have a pay floor. Meanwhile, the bulk of the delivery personnel in NYC use bikes.
The company said the fuel surcharge goes into effect on March 16. Uber will reportedly reevaluate the policy at a later date. Strangely, riders will have to pay the surcharge even if they’re on an EV. Speaking to The Verge, spokesperson for Uber, Harry Hartfield, said the company hopes this would “serve as additional incentive for drivers to transition to EVs going forward.”
While widespread EV adoption is one way to soften the blow of rising gas prices, it’s not a feasible solution for everyone. This is mainly due to the unreliability of the supply chain and the rising prices. Uber encourages EV adoption among its drivers with several perks. Interested drivers can get up to $6,000 off on the Nissan Leaf and discounts on EV charging at select outlets.