Lyft joins Uber in adding surcharges to rides to help offset the cost of gas for drivers

Lyft joins Uber in adding surcharges to rides to help offset the cost of gas for drivers
A passenger enters an Uber at LaGuardia Airport in New York, March 15, 2017.Seth Wenig/AP Photo
  • Lyft will add a temporary fuel surcharge to cover skyrocketing gas prices, CNBC reported.
  • Uber announced a similar fee on Friday.

Lyft followed Uber on Monday in adding a temporary price hike that goes to drivers to cover skyrocketing gas prices amid Russia's invasion of Ukraine and inflation.

CNBC first reported Lyft's move. The company did not provide more details on how the charge would work.

"We've been closely monitoring rising gas prices and their impact on our driver community. 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 told Insider on Monday.

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On Friday, Uber announced that riders would pay 45 or 55 cents for a ride and that the fees would go to drivers. Uber Eats orders would cost an extra 35 or 45 cents. The company said that it would be based on average trip distance and increases in gas prices in various states.

"Many people are feeling the sting of record-high prices at the pump—and that's certainly true of drivers and couriers," Uber's statement said.


Drivers had expressed anger at both rideshare companies over gas price increases and thought about finding other jobs, in some cases.

Uber's new policy starts Wednesday and will last for two months, at which point the company will evaluate the policy. "We'll also continue to track gas price movements to determine if we need to make additional changes," the statement added.

Uber's surcharge does not apply to trips that start in New York City or food delivered to customers there. Drivers in the area got their 5.3% annual increase in mandated minimum earnings required by law, the company added.

Gas prices went up in 2021 as inflation did, and soared in 2022 after Russia invaded Ukraine, even though the U.S. is "energy independent." Oil prices, which are tied to gas prices, dropped Monday to $110 a barrel after peaking at $123 a barrel. Still, the average gas price of a gallon of gas on Monday was $4.325, per the AAA.