Uber Technologies Inc. announced on Friday a temporary fuel surcharge will be added from March 16 on fares and deliveries in the United States and Canada in response to surging gas prices.
Riders taking an Uber in the United States will have to pay a surcharge fee of $0.45 to $0.55 per trip, while a $0.35 or $0.45 consumer fee will be added to each Uber Eats order, depending on their location. The money charged will go directly to the workers, who are responsible for paying their own gas.
The surcharges can vary based on trip distance and gas prices in each state, Uber said, adding that they won’t apply in New York City because drivers already received a 5.3 percent pay increase on March 1, accounting for the increase in gas costs.
The new measure will last for at least 60 days, after which Uber will make adjustments based on feedback from workers and customers.
Many drivers working for Uber have expressed frustration on social media over high gas costs that have had an impact on their earnings, even as the company raised its profitability outlook. Some drivers have asked if it was still worth getting behind the wheel.
Uber said the company is seizing this moment to encourage drivers to switch to electric vehicles (EV), and drivers can make as much as $4,000 more per year for using an EV.
"Our latest partnership with Hertz will make up to 50,000 fully electric Teslas available for eligible drivers to rent by 2023," Uber said. "This is the largest expansion of EVs on a mobility platform in North America, marking another step towards Uber’s zero-emissions goal."