Lyft's surcharge takes effect as gas prices remain elevated
Lyft's surcharge, like Uber's, will last for at least 60 days
FOX Business Flash top headlines for March 21
Here are your FOX Business Flash top headlines for March 21.
Lyft riders will now have to pay an additional $0.55 more each time they book a ride.
The ride-share company's fuel surcharge takes effect this week and will last for at least the next 60 days, according to Lyft's announcement. The surcharge fees will go directly to the drivers.
"This will help offset fuel costs, which also helps more drivers stay on the road," Lyft said in a statement. The company declined to comment further on the surcharge.
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Passengers wait for rides from Lyft Inc. at the LAX-it centralized pickup area at Los Angeles International Airport (LAX) in Los Angeles, California, U.S., on Tuesday, Oct. 29, 2019. (Patrick T. Fallon/Bloomberg via Getty Images / Getty Images)
Meanwhile, Uber's surcharge already took effect on March 16.
Uber riders are facing an additional charge of either $0.45 or $0.55 on each Uber trip, depending upon the location. They are also paying an extra $0.35 or $0.45 for each Uber Eats order, according to the company. Uber's surcharge will also last at least 60 days.
Like Lyft, the company is passing 100% of that money onto its drivers. Both companies have been trying to retain drivers, who have the burden of paying for their own gas, amid the tumultuous economic environment.
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However, a recent survey conducted by the blog Rideshare Guy showed that 15% of over 300 drivers have already quit, according to Reuters.
Currently, the national average for a gallon of gasoline is $4.25, an increase of more than 70 cents compared to a month ago, according to data by AAA.
The national average has continued to rise since the beginning of the year due to strained supply and increased demand, according to Edmonds. However, Russia’s invasion of Ukraine at the end of February caused oil prices to surge higher, pushing prices at the pump to levels not seen in over a decade.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 16.41 | -0.35 | -2.12% |
| UBER | UBER TECHNOLOGIES INC. | 69.27 | -0.34 | -0.48% |
To help, Lyft said drivers can also apply for a Lyft Direct debit card to get an increased 4% to 5% cash back on gas purchases through June 30. Lyft also has a partnership with GetUpside that was announced in January that can help most of its drivers get cash back on gas purchases.
Meanwhile, Uber is offering incentives to drivers who switch to electric vehicles. For instance, electric vehicle drivers with Uber will get $1 more per trip up to $4,000 annually as part of Uber’s Green Future Program.
The Associated Press contributed to this report.