Drivers for Uber and Lyft across the US are spending hundreds more dollars on fuel each month after the US-Israel war on Iran triggered a sharp rise in oil prices.
Support offered by the ride-hailing companies amounts to a “slap in the face”, drivers operating their services told the Guardian, as many are forced to choose between driving more to make the same money as previously – or cutting back their miles to reduce costs.
The companies have both expanded rewards and discounts through financial services products in recent weeks, as average US fuel prices surged from $2.98 a gallon at the end of February to above $4.
But gig workers at Uber and Lyft say such support is not enough, and “pretty hollow” compared to any increase in pay for drivers.
“A few weeks ago, I filled up my hybrid car for $36,” said John Mejia, a driver for Lyft and Uber in Oakland for over a decade. “Now it’s $60, so I don’t drive as much.”
The higher cost of fuel is “money that comes out of what Uber or Lyft pays me”, said Mejia, who has picked up other jobs or gigs to make up the shortfall.
At the staging lot for ride share drivers at San Francisco international airport, Mejia now waits in the lot, rather than finding other rides in the area. “I don’t want to waste the gas, because I can’t afford it,” he said.
Rideshare drivers for apps such as Uber and Lyft are classified as independent contractors, and bear the costs of buying or leasing a car; maintenance; and fuel.
Prisell Polanco, an Uber and Lyft driver in the Boston area for about eight years, said he’s been spending an extra $300 a month on fuel alone, without any increase to his income from driving.
“Every year, we get paid less and less money for the same ride. That forces you to work even more hours just to pay bills,” said Polanco, who noted he still drives 10 to 12 hours a day because he invested in a car specifically for rideshare driving.
Mary, an Uber driver for over five years in Chicago, said she had driven less due to the cost of fuel and lack of money to cover it. “None of the fare prices have been adjusted,” she said. “I’m struggling to do this. I’m struggling to put gas in the car to go out there and make the money that I used to make.”
Harvin, a full-time driver for Uber in Los Angeles for over six years, described similar issues. “Two months ago, I paid $55 for a full tank of gas – now I have to pay over $75 for a full tank,” he said. “That means I have to work more hours, around 12 hours a day, just to get what I’m used to making.”
Jonathan Tipton Meyers has driven for Uber and Lyft since 2014 in LA, and noted gas prices in California were significantly higher than much of the rest of the US.
He criticized the savings and discounts offered to drivers by Uber and Lyft in lieu of increased pay.
“Like many things that Uber and Lyft offer, semantically on paper they’re true, but in practicality, they’re usually pretty hollow,” said Tipton Meyers. “Whatever passengers are paying, the drivers are getting probably about 25 to 30% of that, and and if you increase gas prices on them, it means that you’ve got a driver who’s on the road couple of hours, maybe a day, longer than they would to make the same amount of money.”
Mejia, from Oakland, added: “If I drove full-time, I would not be able to put food on the table. Drivers are like everybody else. They need to make a living, and with these gas prices going so high, we can’t do it any more. They don’t pay us enough anyway, and now with the gas prices going up, I think people are driving less.”
The discount reward programs offered by Uber and Lyft to offset fuel costs do not “make sense”, said Mejia, who claimed they offer discounted prices at more expensive gas stations. “I’m not making money,” he said. “I’m losing more money because I’m taking this ride, and you’re expecting me to believe that you’re saving me money. It’s a slap in the face. It is ridiculous what they want to offer us.
“I’d be happier with the 50¢ per ride surcharge they offered in 2022, which still is not enough, but it’s a slap in the face. They do not care about drivers.”
A spokesperson for Uber shared a press release covering the company’s expanded discount and savings programs to help with fuel, which includes rewards and additional cashback if drivers sign up and use the Uber Pro debit card.
“Altogether, top-tier drivers and couriers can save up to $1.44 per gallon when they fill up their tank using these combined offers and discounts,” the press release claimed.
A spokesperson for Lyft shared a similar release on expanded discounts and rewards through programs like the Lyft Direct debit card.
“Drivers are feeling the cost of rising gas prices, which ultimately impacts their earnings,” said Yuko Yamazaki, Lyft’s VP, head of driver, in a statement. “When costs spike, we want drivers to choose Lyft because they feel like the platform works for them, not against them.”
