Uber, Lyft Drivers Call Fuel Surcharge 'Insult' Amid Stagnant Gas Prices

Uber and Lyft have begun imposing a fuel surcharge on passengers to help drivers offset the rising gas prices that have skyrocketed since the war in Ukraine began, but drivers are saying those fees aren't doing enough to convince them to keep working for ridesharing services.

A new poll of 252 rideshare drivers conducted by The Rideshare Guy, a blog focused on the gig economy, found that 43 percent of drivers still say they're driving less or have quit entirely despite the surcharges that were introduced earlier this month.

While those new policies seem to have kept some drivers working—53 percent of drivers said the same before the surcharges were announced—many still say it's not enough to offset costs that have spiked to record-breaking highs as the U.S. continues to sanction Russia's economy.

The ban on Russian oil imports, coupled with inflation, has caused gas prices to hover near a 14-year high. Although the national average for a gallon of gas fell 10 cents from the recent peak, gas is still costing Americans $1.35 per gallon more than they were paying a year ago.

These increases have been particularly difficult on rideshare drivers, who have been forced to cough up the extra money in order to do their jobs.

In an effort to help their workers, both Uber and Lyft announced fuel surcharges for American and Canadian customers. Uber's surcharge ranges from $0.45 to $0.55 per trip while Lyft is charging customers an additional $0.55 per trip. But drivers said they saw those surcharges as not making an impact when it comes to their expenses.

Mike Barrows, who quit driving entirely, told pollsters that the "[Fifty-five cents] per ride is an insult," while Jabari Jones, who said he's driving less, called the surcharge a "slap in the face."

"We know drivers and couriers are feeling the sting of record-high prices at the pump, so we're rolling out a temporary fuel surcharge to help," Uber said in a statement shared with Newsweek. "This consumer surcharge will apply to each ride or delivery and will vary by location, with 100 percent going directly to drivers and couriers. Our hope is that this temporary measure will help ease the burden, but we'll continue to listen to feedback and may make changes in the future. Importantly, we're also seizing this moment to bolster our efforts to help drivers make the switch to electric vehicles."

Uber's estimates found that prices in Florida have cost the average driver an additional $14.48, but the company noted that working 40 trips on a tank, including miles between trips, would mean the new surcharges would cover the extra costs and leave drivers with an additional $7.16 they wouldn't have in their pocket before the surcharge.

Drivers said they would have preferred to see a per-mile surcharge that would help offset expenses on longer trips, rather than the flat fee per ride.

"This should be a fluctuating surcharge," Angela Ryan, who said that she stopped driving, told the Rideshare Guy. "Base charge for short trips and a larger charge for longer rides. A surcharge would be fantastic if it really helped."

"We really should be compensated more with rising prices of gas and the lack of tips because the riders have no idea of all the extra fees which come out of our bottom line too," she added. "I will not be driving until better help is offered, or prices go down. It is just not an income, it is a negative right now."

Of those surveyed, 39 percent of drivers said they were not satisfied with Uber's fuel surcharge and 42 percent of drivers said they were not satisfied with Lyft's surcharge. Only 28 percent and 21 percent were satisfied, respectively.

Last week, Lyft said in a statement: "We've not seen a decline in the number of drivers on the platform or the hours they drive when, for example, you compare March to January."

Uber said the app saw the highest number of active U.S. drivers since the pandemic last week.

An internal analysis by Lyft estimates that drivers are spending $0.75 more on gas per hour than they were a year ago, but that nationally, drivers are still earning more on average than they were this time last year.