Rides will be going up by 45 to 55 cents, but if more drivers decide to quit because of rising gas prices, trip costs could surge further.
Uber Technologies Inc said on Friday U.S. customers, excluding New York City, will have to pay a fuel surcharge from March 16 as the ride-hailing firm tries to address concerns of drivers and couriers hit by record high gasoline prices.
Customers will have to pay a surcharge fee of either 45 cents or 55 cents on each Uber trip and 35 cents or 45 cents on each Uber Eats order, depending on their location. The money charged will go directly to the workers, Uber said.
The surcharge will last for at least 60 days after which it will make adjustments based on feedback from workers and customers.
The move comes as many Uber drivers have been protesting on social media over high gas costs that have been eating into their earnings even as the company raised its profitability outlook, with some asking if it was still worth getting behind the wheel. Western sanctions following the invasion of Ukraine by Russia, a major oil producer, had crippled global oil trade and could further lift gasoline prices.
(Reporting by Chavi Mehta in Bengaluru and Tina Bellon in Austin, Texas; Editing by Arun Koyyur)
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Photo credit: Uber CEO Dara Khosrowshashi (right) in discussion with Skift Executive Editor Dennis Schaal at Skift Global Forum, Sept. 22, 2021. Matt Mateiescu / Skift