May 25, 2022

According to a survey provided by gaming-updates, nearly half of Uber and Lyft drivers in the US are stopping or driving less due to high gas prices due to Russia’s war in Ukraine, which adds temporary fuel surcharges to these taxi companies’ fares despite the fact that they are leaving.

Harry Campbell, Founder and CEO of Rideshare Guy (RSG), a blog and podcast dedicated to helping rideshare drivers make more money, “43 percent of Uber and Lyft drivers still say they drive less despite new fuel allowance. “Stay up to date with industry news,” says gaming-updates. “This compares to the 53% of drivers who said the same thing before the fuel surcharge announcement.”

The RideShare Guy initially polled drivers about how they feel about rising gas prices, collecting 325 responses from Uber and Lyft drivers between March 7 and March 11 via email and social media. When surcharges were announced in mid-March—$0.45 to $0.55 per ride for Uber customers and $0.55 for Lyft customers to speak directly to drivers—between March 22 and 24, another poll, this Bar raised funds. 252 responses.

“Many drivers say the fuel surcharge is not enough and would prefer a mileage surcharge to offset the increase in fuel costs on long trips rather than a flat rate,” says Campbell.

A Lyft driver in Orlando, Florida told gaming-updates that the $0.55 per ride charge is “an affront to drivers.”

Calculating the average number of trips per driver per day is difficult, but putting fuel surcharges in perspective, if a driver averages 15 trips per day, he or she will receive an additional $8.25 per day at a cost of $0. 55. According to statistics from the American Automobile Association, the average price of gasoline in the US is $4,246. A year ago, the average was $2,859.

Uber and Lyft’s revenue grew year-on-year from 2020 to 2021, which both say is due to increased airport travel as travel increases post-pandemic. Airport trips are a good revenue booster as they are longer and therefore more expensive; However, drivers say that there is an extra charge for this type of ride on top of the standard $0.55.

Driver Angela Ryan, who told RSG that she has stopped driving entirely due to high gas prices, is suggesting that Uber and Lyft introduce a floating surcharge that applies to short trips and more for longer trips or higher labor costs. and gasoline. Deep. For example, an additional charge for trips in which drivers carry luggage, groceries or anything else that makes the car heavier, or trips involving driving uphill or in mountainous areas that consume more gasoline.

IWe really should be more compensating for higher gas prices and no tips, because riders have no idea about all the extra costs that are also associated with our profits, ”Ryan said. Prices are falling. It’s not just income, it’s negative now.”

While Uber and Lyft have diversified their revenue streams, Uber is increasingly focusing on trucking and delivery, and Lyft has successfully run bikeshare programs across the country, both companies mostly in the form of taxis. income growth, which means that drivers should be a top priority.

This is something Uber understands, even though it has cost the company in the past. Last April, Uber launched a $250 million stimulus package to encourage drivers to return to the app after the pandemic left drivers en masse.

When Lyft announced its 2021 earnings in early February, CEO Logan Green said the company maintained its driver recovery in the fourth quarter and active drivers beat another pandemic the company had to deal with. Despite Omicron’s version, it was expected that it will be preserved. This was clear even before gas prices skyrocketed, although Lyft told gaming-updates it didn’t see a drop in the number of drivers on the rig or the hours they spent behind the wheel in March compared to January. Uber did not respond in time to the publication.

Research results show that the surcharges have undermined the lives of at least many drivers. Before the introduction of the surcharge, 36% of drivers said they drive the same amount, and after the introduction of the surcharge, their number increased to 43%. After the surcharge, 30% and 13% respectively said they had reduced or stopped tariffs due to gas prices, compared to 38% and 15% before.

“We can see that, overall, Uber drivers were slightly happier with the surcharges than Lyft drivers, which is interesting as the surcharges were the same and Lyft also added additional cashback options on gas purchases for drivers using a Lyft debit card. use,” Campbell said. , citing Lyft’s initiative to offer U.S. drivers with a Lyft Direct debit card an increase in cashback from 4% to 5% on gas through June 30th.

However, in general, drivers are dissatisfied with such an extra charge. The survey found that 39% of Uber drivers and 42% of Lyft drivers said they were unhappy with fuel surcharges. Only 28% of drivers were happy with Uber’s fuel surcharge, while 21% were happy with Lyft. About a third of Uber and Lyft drivers responded without being forced.

IMany drivers asked why it took so long: Uber (and then Lyft) delayed their announcements, then delayed implementation when the problem dragged on for weeks? Campbell said. IOthers said that the additional fuel surcharge was not enough to make a difference: some said that inflation was growing faster than this fuel surcharge, others said that it did not cover the increase in gasoline in their cities.

Christopher Patrick said he hasn’t changed his driving habits but doesn’t expect fuel prices to drop. While he believes Uber and Lyft should have added the surcharge two weeks ago, he says it’s a move to recognize the rising cost of doing business for drivers.

“decrease” [Uber/Lyft’s] Acceptance as a TNC or increased compensation per mile/time are long-term requirements to keep drivers available during these times of high inflation,” said Patrick.

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