The company said on Friday that it is adding a surcharge on fares and deliveries in the US and Canada.
The company said that riders will pay a fee of between $0.45 and $0.55 per ride, and that deliveries will include a surcharge. The fees will last for at least two months.
The company said that the fees will go to drivers who pay for gas.
The surcharges can be adjusted based on trip distance and gas prices. They will not apply in New York City because the drivers already received a pay increase.
The move comes as the gas prices around the country are hitting all-time highs and energy prices are skyrocketing because of the Russian war in Ukraine. The average price of a gallon of gas in the US was $4.09 on Sunday, the highest since 2008, according to data fromAAA.
While earnings on our platform remain elevated compared to historical trends, the recent spike in gas prices has affected rideshare and delivery drivers. Liza Winship, the Head of Driver Operations for the U.S. and Canada, said in a post on Friday that they are rolling out a temporary fuel surcharge to help reduce the burden.
Some drivers say the high cost of gas has reduced their wages to less than the minimum wage. Gas costs are less than 10% of total driver earnings, and that hasn't changed from a year ago. In the past two months, there has not been a decrease in the number of drivers.
According to the company, drivers can make as much as $4,000 more per year if they switch to an electric vehicle. Depending on gas prices, the surcharge policy could change in the coming months.
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