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Uber will temporarily add a fuel surcharge to take care of hike in gas prices

Everybody is feeling the gas price hike, but more affected are for-hire drivers. Uber has therefore decided to add a temporary surcharge to ride prices.

Uber is not leaving the drivers on its ride-hailing platform to bear the brunt of the bump in gas prices, which have reached a record high in the US. The company made this known through a blog post recently.

Depending on where they operate, riders will now have either $0.45 or $0.55 tacked on to the cost of each trip. Uber Eats operators would get either $0.35 or $0.45 extra per order.

Uber is not getting any part of the surcharge as it belongs to the driver in its entirety. For now, the surcharge is in place for the next 60 days. But Uber continues to monitor gas prices to make more changes if necessary.

Interestingly, the surcharge applies to all drivers, even those that do not use gas. EV drivers will also benefit from the arrangement, even though they pay for electricity to charge their batteries. Uber hopes this will motivate more drivers to switch to zero-emission cars.

To help drivers make up their minds on abandoning ICE cars on Uber’s platform, the company’s head of driver operations in the US and Canada, Liza Winship, mentioned the benefits of EVs. They include higher earnings of up to $4,000 annually, a $6,000 discount on a new Nissan Leaf exclusive to Uber drivers, and various EV charging discounts. For drivers that prefer Tesla cars, Uber has a partnership with Hertz that allows them to rent from the car rental giant, provided their rating is 4.85 and above, and they have more than 100 rides under their belt.

However, these benefits may not sway most Uber drivers as it is hard to swallow the higher costs of EVs. Moreover, there are not as many choices as the ICE vehicle market.

Uber notes that trips that start in New York City and food orders delivered to customers in New York City are not included in this arrangement. This is because the drivers operating in the city have already received a 5.3 percent increase through the city’s mandated minimum earnings standard, and it accounts for increased operating costs. It also pointed out that most Uber Eats riders in New York City use bicycles and not cars.

Here is an excerpt from Uber’s blog, written by Winship:

“We know that you’ve felt the sting of record-high gas prices, which has affected how much you’re able to earn on Uber. In an effort to reduce the burden of high fuel costs, we are rolling out a temporary fuel surcharge to support drivers and couriers. 100% of this new surcharge will go directly to you.

“Rides customers will pay a surcharge of either $0.45 or $0.55 on each Uber trip, and Eats customers will pay either $0.35 or $0.45 on each Uber Eats order, depending on their location.

“The surcharge is temporary for the next 60 days, but we will continue to monitor gas prices and may make additional changes. 

“The surcharge amount will vary by city, depending on average trip distances and local gas price increases.

“It’s important to highlight that this surcharge is temporary and designed to try and keep earnings consistent during this difficult moment. Over the coming weeks, we plan to listen to your feedback. 

“Through our partnership with GetUpside, you can also get cashback at more than 25,000 gas stations in the United States. If you haven’t yet, take a minute to sign up. The US Department of Energy and Environmental Protection Agency have tips about how to get the best gas mileage out of your vehicle here.”

Written by HackerVibes

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