Lyft Follows Uber as Both Announce New Surcharges, Fees Due to Gas Price Hikes Both rideshare companies announced new surcharges due to increased prices on gas.

By Emily Rella

David Paul Morris/Bloomberg via Getty Images
David Paul Morris/Bloomberg via Getty Images

Gas prices have reached astronomical highs, with many states breaking records for highest recorded average prices per gallon ever in the U.S.

Many have wondered if these increases in fuel prices would affect rideshare companies and their ever-fluctuating rates and from the looks of it, the answer is unfortunately a resounding yes.

Late last Friday, Uber announced that it would be rolling out surge rates in an effort to offset skyrocketing fuel prices across the country.

The new prices will roll out on Wednesday, with an additional charge of $0.45 or $0.55 for Uber rides and $0.35 to $0.45 for Uber Eats drivers.

Related: 'This Is About Respect': NYC to Raise Minimum Pay for Uber and Lyft Drivers, But Pushback Is Expected

The surcharge fees will go directly to drivers indwell be based off of the average trip distance and gas prices in each state.

"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 wrote in a statement. "Over the coming weeks we plan to listen closely to feedback from consumers, couriers and drivers. We'll also continue to track gas price movements to determine if we need to make additional changes."

The fees will reportedly last for 60 days until the situation is reassessed.

Shortly thereafter, rival company Lyft followed suit, announcing that it would also be rolling out a temporary surcharge for rides with more details to follow in the coming days.

Related: Uber, Lyft to Share Information About Drivers Banned for Assault

"We've been closely monitoring rising gas prices and their impact on our driver community," Lyft spokesperson CJ Macklin explained to The Verge in a statement. "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."

Lyft's surcharges will add $0.55 to ride receipts and will last for 60 days.

The fees will not be applicable in New York City since the city raised its minimum earnings standard earlier this month by 5.3% in order to offset increased expenses. It will also not be applicable in Nevada due to regulations that don't permit an immediate rollout of the surcharge.

Drivers who operate electronic vehicles will also receieve the surcharge earnings in order to allow for fair and equal earning opportunities amongst all drivers with the company.

"Recent gas price increases are making all types of transportation more expensive. And this has a direct effect on drivers," Lyft said in a statement viewed by Entrepreneur. "This will help offset fuel costs, which also helps more drivers stay on the road."

The rideshare company was down over 43% year over year on Tuesday afternoon. Uber was also down just over 46% in the same timeframe.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Editor's Pick

Related Topics

Side Hustle

Anyone Can Start a Passive Income Side Hustle For Easy Money — But Only If You Know These 5 Essential Tips First.

The rise of digital automation technology has made starting a passive income side hustle easier and more accessible than ever before.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.

Growing a Business

How an Executive Coach Can Help You Set Better Goals — And Transform Your Business

Ways to enhance your competitive advantage — and psychological wellbeing — with the assistance of a seasoned, results-focused professional.


How to Start a 'Million Dollar' Morning Routine

Restructure your morning with a few simple steps that may help to amplify your energy.