Uber is adding a surcharge on fares and deliveries in the U.S. and Canada in response to surging gas prices, the company said Friday.
Riders taking Uber trips will pay a fee of $0.45 to $0.55 per trip, and Uber Eats deliveries will include a $0.35 to $0.45 surcharge, the company said. The fees are temporary and will last for at least two months.
The company said the fees will go to drivers, who are responsible for paying for gas they use.
The surcharges can vary based on trip distance and gas prices in each state. They wont 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, Uber said.
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, Liza Winship, Ubers Head of Driver Operations for the U.S. and Canada, said in a blog post on Friday.
The move comes as the gas prices around the country are hitting all-time highs and energy prices are skyrocketing following the Russian invasion of Ukraine.
President Joe Biden announced Tuesday that the U.S. would ban all imports of Russian oil, gas and energy, saying the move would deal a blow to “Putin’s war machine.”
Gas prices went up Tuesday to $4.17 for a gallon of unleaded, breaking the previous record of $4.10 set in July 2008, according to AAA.
Uber says that gas costs are less than 10 percent of total driver earnings, and that hasnt materially changed from a year ago. Uber said on Friday that it has not seen a decrease in drivers in the past two months.
The company said it is encouraging its drivers to use electric vehicles, and drivers can make as much as $4,000 more per year for switching to an electric vehicle. Uber warned that its surcharge policy could change in the coming months depending on gas prices.