Gas prices have reached astronomical highs, with many states breaking records for highest recorded average prices per gallon ever in the US
Many have wondered if these increases in fuel prices would affect rideshare companies and their ever-fluctuating rates and from the looks of it, the answer is unfortunately a resounding yes.
Late last Friday, Uber announced that it would be rolling out surge rates in an effort to offset skyrocketing fuel prices across the country.
The new prices will roll out on Wednesday, with an additional charge of $ 0.45 or $ 0.55 for Uber rides and $ 0.35 to $ 0.45 for Uber Eats drivers.
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The surcharge fees will go directly to drivers indwell be based off of the average trip distance and gas prices in each state.
“We know that prices have been going up across the economy, so we’ve done our best to help drivers and couriers without placing too much additional burden on consumers,” Uber wrote in a statement. “Over the coming weeks we plan to listen closely to feedback from consumers, couriers and drivers. We will also continue to track gas price movements to determine if we need to make additional changes. ”
The fees will reportedly last for 60 days until the situation is reassessed.
Shortly thereafter, rival company Lyft followed suit, announcing that it would also be rolling out a temporary surcharge for rides with more details to follow in the coming days.
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“We’ve been closely monitoring rising gas prices and their impact on our driver community,” Lyft spokesperson CJ Macklin explained to The Verge in a statement. “Driver earnings overall remain elevated compared to last year, but given the rapid rise in gas prices we’ll be asking riders to pay a temporary fuel surcharge, all of which will go to drivers. We’ll share more details shortly. ”
Lyft’s surcharges will also go directly to drivers.
The rideshare company was down over 47% year over year on Monday afternoon. Uber was also down just over 51% in the same timeframe.