Uber has revolutionized the taxi industry. The cab service provider was a major hit worldwide with millions of users. It appears the cost of using Uber will increase with the recent surge in gas prices.
The company is adding a surcharge on fares and deliveries in the U.S. and Canada to cover rising gas prices. Rides will now require a $0.45 to $0.55 per trip charge while deliveries will tack on a $0.35 to $0.45 surcharge. This move will certainly burn a hole in consumers’ pockets.
In the blog post shared by Liza Winship, Uber’s Head of Driver Operations for the U.S. and Canada, the company revealed that their earnings remain historically high. That being said, the company will still raise prices to help drivers.
“While earnings on our platform remain elevated compared to historical trends, the recent spike in gas prices has affected rideshare and delivery drivers. To help reduce the burden, we are rolling out a temporary fuel surcharge,”
It should be noted, the new costs will not affect users in New York as the city has mandated that Uber will have to increase their minimum payouts to drivers. Uber explained in the statement that drivers will have to use their increased wages to cover their costs for gas,
“On March 1, drivers in New York City received a 5.3% increase to the city’s mandated minimum earnings standard, which accounts for increased operating costs, and the vast majority of NYC delivery workers use bicycles, not cars.”
The company said it’s actively encouraging drivers to switch to electric vehicles. Reportedly, drivers can make as much as $4,000 more per year for switching to EV. Uber also warned that its surcharge policy could change in the coming months depending on gas prices.
Stay tuned to Thirsty for future updates.
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