In the U.S. and Canada, Uber said on Friday it will add a surcharge on rides and deliveries in response to soaring gas prices, CNBC reported. Uber riders will pay $0.45 to $0.55 per trip, while Uber Eats deliveries will include a $0.35 to $0.45 surcharge, the company said. These fees are temporary and will last for at least two months.
The company said the fees would go to the driver, who was responsible for paying for the gas. Surcharges can vary based on distance traveled and gas prices in each state. Uber said the fees won’t apply to New York City because drivers already received a 5.3% pay rise on March 1, which included the increase in the cost of gas.
The move comes after gasoline prices hit record highs across the U.S. and energy prices have skyrocketed due to the outbreak of the Russian-Ukrainian conflict. The average price of a gallon of gasoline in the U.S. on Sunday was $4.009, the highest since 2008, according to the AAA.
“While earnings on our platform remain high compared to historical trends, the recent spike in oil prices has impacted ride-sharing and delivery drivers. To help ease the burden, we’re introducing a temporary fuel surcharge,” Uber America said in a statement. Liza Winship, Canada’s director of driver operations, said in a blog post on Friday.
Drivers are reportedly unhappy with high gas bills, which some say have brought their effective wages below the minimum wage. But Uber said gas costs make up less than 10 percent of a driver’s total income and haven’t changed substantially from a year ago. Uber said Friday that it has not seen a reduction in the number of drivers over the past two months.
Uber said Friday that it is encouraging drivers to use electric vehicles and that drivers can earn an extra $4,000 a year by switching to electric vehicles. Uber has warned that its surcharge policy could change in the coming months based on changes in oil prices.