Rideshare Drivers Face Quitting Point Amid Rising Gas Prices

Millions of Uber, Lyft, DoorDash, and Instacart drivers are grappling with the financial strain of increasing gas prices, leading many to consider abandoning their work. The rising cost of fuel is directly impacting their earnings and ability to make a living.

Drivers Express Concerns

Tamira Moncur, a part-time Lyft driver and teacher in the Atlanta area, expressed her anxieties about continuing the side gig. “I’m working now for rideshare, but I don’t know what that’s going to look like next week. Because if gas is $4 a gallon, I’m done,” she told CNN. She hesitated to fill up her tank last month due to affordability concerns.

Leanne Hall, an Uber driver in Las Vegas, Nevada, for five years, worries about profitability. “I do to make money. And if gas prices keep going up, it’d be foolish to do it,” she stated. The financial burden of fuel is threatening her income.

Gas Price Surge and Global Impact

The national average for a gallon of regular gas surpassed $4 on Tuesday, marking the highest price since 2022 – an increase of over a dollar in the past month. According to Gas Buddy, Americans have spent over $8 billion more in the last month on gasoline. This spike follows the recent US-Israeli war with Iran.

Disrupted Oil Supply

The conflict in Iran disrupted approximately 20% of the world’s oil supply in the Strait of Hormuz, driving crude oil prices above $100 a barrel. Since gasoline is derived from crude oil, this disruption directly contributed to the price increases at the pump.

Platform Responses and Driver Awareness

Rideshare and delivery platforms have announced limited assistance programs for drivers. Uber is offering $1 off per gallon through Upside and an additional 5% on gas purchases with the Uber Pro card. Lyft provides up to 2% cash back with its Lyft Direct debit card, while DoorDash offers 10% cash back on its Crimson card. Instacart is increasing cash back options and will pay $5 weekly to drivers exceeding 125 miles.

However, CNN’s interviews with over half a dozen drivers revealed limited awareness of these programs. Abdallah Lukman, an Uber and Lyft driver in New York City, noted, “I’ve not heard anything from anybody.” Few drivers interviewed possessed the necessary cards to benefit from the cash back incentives.

Shift from Direct Assistance

This current support differs from the direct assistance offered by Uber and Lyft in 2022, following Russia’s invasion of Ukraine. At that time, both companies implemented a 50-cent fuel surcharge per ride, paid directly by customers. Neither Lyft nor Uber responded to CNN’s inquiry regarding the change in approach.

Calls for Increased Pay

Drivers are advocating for increased compensation. Omar Lewis, a driver in Charlotte, North Carolina, believes, “I think they need to pay Uber drivers more if the gas prices go up.” Hall suggested an additional $1 per mile per ride. Azam Bakhriddinov, a Lyft driver in New York City, is now spending $30 more to fill his tank and suggests government intervention, stating, “I think the government should help, maybe. Customers are looking for cheaper prices.”