Uber and Lyft Introduce Fuel Surcharge Amid Rising Gas Prices

On Friday, Uber revealed that starting March 16, riders will incur a fuel surcharge to help alleviate the impact of rising gas costs on drivers. Depending on the area, passengers will pay an additional $0.45 or $0.55 per trip (with Uber Eats surcharges of $0.35 or $0.45).

Although the new fees apply nationwide, New York City is the exception. Rides beginning in New York City (or deliveries to customers there) will not incur these charges. Uber noted that as of March 1, drivers in New York City received a 5.3 percent raise above the city’s required minimum earning standard to offset higher operating expenses.

For the rest of the U.S., "The surcharges are calculated based on the average trip length and the rise in gas prices in each state," said Liza Winship, Uber’s head of driver operations for the U.S. and Canada, in a press release. She mentioned that "this is temporary for at least the next 60 days, after which we'll evaluate the situation."

In an online post directed at drivers, the company stated that this initiative aims to maintain drivers' earnings during this challenging period. As reported by AAA, on March 14, the national average gas price stood at $4.325 per gallon (with prices ranging from $3.818 in the Midwest to $5.744 on the West Coast). Last year, the average for regular gas was $2.859. If gas prices continue to climb, some drivers may find it financially unfeasible to continue working, potentially leading to a decrease in available ride-shares and further increases in ride costs.

Lyft has also revealed plans to implement fuel surcharges starting March 21, which will be a fixed $0.55 per ride (excluding New York City, where no extra fee will apply). In a statement to Dinogo, CJ Macklin, Lyft's senior communications manager, mentioned, "We’ve been carefully tracking the increase in gas prices and their effect on our driver community. While overall driver earnings remain higher than last year, the swift rise in gas prices necessitates a temporary fuel surcharge from riders, which will be fully allocated to drivers."