DiDi raises prices in Australia to cover soaring petrol costs amid conflict in the Middle East | Business
Ride-sharing giant DiDi has increased its prices to cover rising petrol costs, becoming one of the first major companies to charge Australian consumers more after airlines due to conflict in the Middle East.
Uber, DoorDash and Australia Post were among delivery and shipping companies considering whether to add fees as small businesses increase fees.
DiDi customers across Australia will be paying an extra 5 cents per kilometer from Wednesday, all of which the company said will be passed on to drivers.
Assuming a fuel economy of 10 liters per 100 kilometers for a typical trip, the surcharge would offset the approximately 50 cents per liter increase in gasoline prices since the U.S. went to war with Iran.
DiDi trips with electric vehicles will also incur additional charges, but drivers will not have fuel costs. DiDi Australia’s head of external relations Dan Jordan said DiDi had previously implemented a 3c per kilometer fuel surcharge in 2022, when the fuel tax pause was lifted.
“We recognize the ongoing pressure rising fuel prices are placing on our drivers across Australia, with higher costs at the pump directly impacting their ability to earn from the platform,” Jordan said.
Uber has yet to announce a surcharge, leaving Uber and Uber Eats delivery drivers out of pocket due to higher fuel costs. An Uber spokesman said the company acknowledged the costs on workers.
“Uber is actively monitoring as conditions evolve and regularly reviews ways to support drivers and delivery drivers,” the spokesperson said.
“We are always looking for ways we can continue to support them.”
While food delivery platform DoorDash is expected to announce support for its drivers and delivery drivers soon, a spokesperson said the company is “actively looking at options.”
Australia Post will announce its flat petrol surcharge for May in the coming days, which will impact online shoppers and e-commerce businesses.
The April surcharge was set at 4.8%, the lowest level since May 2022, two weeks before the start of the war. While Australia Post declined to share how high the new surcharge will be, the rise in oil and petroleum prices in 2022 has increased the surcharge on transactions to 12%.
“This is a very fluid situation that we are assessing and monitoring carefully and we will continue to keep our customers updated,” a spokesman said.
Woolworths declined to comment on whether prices for grocery deliveries or its Milkrun service would increase. The company did not report any disruptions in deliveries or pricing.
Small businesses are also being exposed, with hauliers, cleaners and water taxis among those using social media to reveal their new higher prices to customers.
Major airlines, including Qantas, have increased prices for customers due to the rise in jet fuel costs. Cathay Pacific doubled its surcharge on Wednesday; There is currently a fee of US$149.20 (AU$209.77) for bookings made in Australia.
Businesses have been warned they could face legal action if they make false or misleading statements about why they are increasing prices. The Australian Competition and Consumer Commission said last week it was monitoring the aviation industry particularly closely.
The Reserve Bank raised interest rates on Tuesday in a bid to curb Australians’ spending to prevent businesses from being hit by a temporary rise in oil prices.
“If we don’t reduce excess demand, businesses will build it into their costs, so it will be worse for everyone,” RBA governor Michele Bullock said.
Some companies are taking the hit to their own profits. While Coles has made no changes to grocery delivery prices or fuel charges, a spokesman said the supermarket giant was continuing “business as usual”.
