Instacart announces 'fuel surcharge' amid gas price increase
Instacart surcharge is expected to be temporary
FOX Business Flash top headlines for March 18
Here are your FOX Business Flash top headlines for March 18.
Grocery delivery service Instacart is announcing a $.40 "fuel surcharge" amid a spike in gasoline prices.
Instacart made the announcement on Friday, stating that the company is implementing the "temporary surcharge" on all customer orders, and states that the money will be directly passed on to the shopper.
"We’re implementing a temporary surcharge on customer orders to help offset the increased cost of gas over the next month. This surcharge will add an additional $.40 on customer orders across our marketplace, with a clear indication of the fuel surcharge on the batch before you accept it. Every cent of the new, temporary fuel surcharge will be passed directly onto the shopper," a statement from Instacart reads.
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In this photo illustration a Instacart logo seen displayed on a smartphone with with fruits in a market in the background. (Photo Illustration by Thiago Prudencio/SOPA Images/LightRocket via Getty Images)
Instacart's Vice President of Operations and Care, Tom Maguire, said that the temporary surcharge is intended to help shoppers that are picking up items for its customers.
"In a time of increased fuel costs across North America, we know that every cent counts, and we’re hopeful this temporary fuel assistance will help offset some of the near-term challenges that shoppers are facing," Maguire said.
Regular gas prices are currently averaging at $4.274 per gallon, which is an increase compared to a month ago, when prices were at $3.528, according to AAA.
DOORDASH PAYING BACK DRIVERS TO OFFSET HIGH GAS PRICES
Close-up of Instacart lanyard, typically worn by workers for the gig economy grocery delivery service while shopping for clients in grocery stores, San Ramon, California, May 7, 2019. (Photo by Smith Collection/Gado/Getty Images / Getty Images)
Instacart isn't the only app-based delivery service instituting a fuel surcharge due to an increase in gas prices.
Uber Eats announced on March 11 it would be adding a "temporary fuel surcharge" of either $.35 or $.45, depending on location, to customer orders placed on the app.
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Uber Eats announced on March 11 it would be adding a "temporary fuel surcharge" of either $.35 or $.45, depending on location, to customer orders placed on the app. (iStock / iStock)
Uber said that the surcharge is temporary "for at least the next 60 days," and then it will reassess.
"We know that prices have been going up across the economy, so we’ve done our best to help drivers and couriers without placing too much additional burden on consumers," Uber's Head of Driver Operations for U.S. and Canada Liza Winship said.
DoorDash announced Tuesday it is giving drivers 10% cash back when they purchase gas using the company's DasherDirect debit card.
The Associated Press contributed to this report