To assist drivers with rising gas costs, Lyft will impose a 55-cent surcharge on each ride.

To assist drivers with rising gas costs, Lyft will impose a 55-cent surcharge on each ride.
To assist drivers with rising gas costs, Lyft will impose a 55-cent surcharge on each ride.
  • From next week, Lyft will impose a 55-cent surcharge on every ride to assist drivers in managing the impact of rising gas prices on their income.
  • The company said the surcharge will last for at least 60 days.
  • Food delivery and rideshare companies are assisting drivers in refueling their vehicles.
After Hours
A traveler arriving at Los Angeles International Airport looks for ground transportation during a statewide day of action to demand that ride-hailing companies Uber and Lyft follow California law and grant drivers "basic employee rights'' in Los Angeles,
An empty Lyft pick-up area is shown as rideshare drivers hold a rally as part of a statewide day of action to demand that ride-hailing companies Uber and Lyft follow California law and grant drivers “basic employee rights″, in Los Angeles, California, U.S., August 20, 2020.  (Mike Blake | Reuters)

It was announced on Wednesday that a 55-cent surcharge will be added to each ride, starting next week, to assist drivers with rising gas costs.

The surcharge will remain in effect for at least 60 days, as stated by the company. According to AAA's data from Wednesday, the national average price of a gallon of gas was $4.305. A year ago, the national average was $2.873.

Rideshare and food delivery companies are attempting to address the issue of drivers struggling to make ends meet due to higher fuel costs. However, there is a concern that some drivers may leave for more profitable work, causing a decline in their take-home earnings. If a significant number of drivers quit, rideshare companies, which are still recovering from the pandemic, may need to reintroduce costly incentive programs to attract new drivers.

The company announced in a blog post that implementing a surcharge will help offset fuel costs, allowing more drivers to stay on the road. Lyft announced on Monday that it would implement a surcharge.

The surcharge will not be applied to New York City and Nevada due to different reasons.

In addition to offering a debit card that provides increased cashback on gas in the US, Lyft also partners with GetUpside for cash-back offers.

The food delivery company announced on Tuesday that it was introducing a cash-back program to offset the costs to consumers. All U.S. delivery drivers will receive 10% cash back on gas through a prepaid business Visa debit card. The program will start on March 17 and last at least until April.

Uber announced fuel surcharges for riders taking trips, and Uber Eats deliveries will include a surcharge.

by Jessica Bursztynsky

technology