Rising gas prices across the country are causing Uber and Lyft to add a fuel surcharge to all of their rides in the United States. This is one example of how companies are passing on the cost of gas to the consumer. We can also expect to see this trend in the airline industry if the Ukraine crisis continues.
Uber customers will pay a surcharge of either $0.45 or $0.55 on each trip, while Uber Eats deliveries will include a charge of $0.35 or $0.45 on each order, depending on their location. Drivers will receive 100% of that money directly, the company said. Lyft has been a bit less upfront about what they will be charging per ride, meaning that it’s probably going to be based on a percentage, rather than a flat fee.
An Uber spokesperson said, “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.”
Not For NYC
Uber also notes, “Trips that start in New York City and orders that are delivered to customers in New York City are excluded. On March 1, drivers in New York City received a 5.3% increase to the city’s mandated minimum earnings standard, which accounts for increased operating costs, and the vast majority of NYC delivery workers use bicycles, not cars.” So travelers to New York will not need to worry about this added fee!
Last week, President Biden announced a ban on all U.S. imports of Russian oil and gas. This is likely to make the cost of oil go up even higher. It seems like the US government is doing what it can do lessen the impact of these rising costs. But unfortunately, I expect it to get worse before it gets better.
It’s Not Just Uber And Lyft
Airlines are grappling with the rise in fuel costs as well. Making the difficult decision of whether or not to raise prices for customers right before the busiest summer season in 2 years.
AAA spokesperson Mark Schieldrop said, “Airlines are in a difficult position because they don’t want to alienate their customers. If they raise prices to cover the cost of the fuel increase 100 percent, they may be pricing people out of the market. It’s a fine line airlines have to walk in order to absorb some of the costs, but at the same time, not make flying so expensive that they undermine their business,”
Road Trip This Summer?
Many people were opting for road trips around the US this summer, citing distrust that International travel restrictions were gone for good. But now it seems like a road trip could cost as much as a trip abroad would with gas prices hitting almost 8 dollars in states like California.
This increase in gas price, and the Ukraine crisis as a whole, are affecting the world. Whether it be the increased prices, the changed routes to avoid certain airspaces, the fear of tourists to travel, we are all seeing the cost of this hit our pockets. I didn’t think we would see a price increase from companies like Uber and Lyft, but I guess I am glad that they are doing something to help their drivers out in this tough time.
