Uber Imposes Temporary Surcharge on Customer in USA

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Uber Imposes Temporary Surcharge on Customer in USA
13 Mar 2022
6 min read


News Synopsis

Uber is imposing a surcharge on its customers in the USA to soften the blow to drivers from continuously increasing gas prices. The company said that the fuel surcharges are paid directly to the driver, a ride-sharing and grocery delivery. It ranges from 45 cents to 55 cents for Uber drivers and 35 cents to 45 cents for Uber Eats customers. Prices will be valid for the next two months.

According to the US Energy Information Administration, US retail gas prices rose 38% year-on-year in February. The average price per gallon of regular gasoline in the USA hit a record high on Tuesday,  nearly 18% higher than it was nine days ago.

Uber Chief Executive Dara Khosrowshahi has said that drivers' earnings would remain consistent if every 20% increase in the cost of gas was met with a 1% increase in passenger fares.

The situation throws a conundrum for rideshare companies. Uber and rival Lyft Inc. brought in the fall of the long-term driving section. Assembly inspection prices threaten the lack of work that companies killed by providing last year's bonus.

At the same time, companies are reluctant to raise prices exponentially, starting at an average of 15-20%  today compared to January last year, according to market research firm YipitData, which is based on an analysis of revenues from Uber and Lyft. 

Other companies that rely on gig workers are trying to counter high gas prices. Grubhub increased courier payments per mile earlier this week. A spokeswoman for one company said the increase was equivalent to an average increase in the cost per mile of gasoline in the area of ​​publicists.