Uber adds fuel surcharge for non-EV fares in Australia amid petrol price rises | Petrol prices
Uber customers in Australia will be charged a fuel surcharge for almost two months from Wednesday unless they drive an electric vehicle.
Uber announced Monday that rides made in gasoline, diesel and hybrid vehicles will charge an extra 5 cents per kilometer from April 15 to June 8.
A spokesman said the surcharge revenue would go directly to drivers to cover fuel costs. Each passenger on a shared Uber Pool ride will be required to pay their own surcharge.
The surcharge would cover the higher costs faced by a driver paying 50 cents more per liter for fuel amid the effects of the US-Israeli war against Iran, assuming a fuel economy of 10 liters per 100 km for a typical trip.
Battery EV trips will be exempt and can be booked through the Uber Electric option, formerly Uber Green, which excludes hybrids and non-electric cars.
The move comes weeks after other ridesharing and delivery companies added fuel surcharges or fuel rebate payments to account for rising fuel prices; When unleaded gasoline peaked in late March, it was close to 260 cents per liter.
DiDi, a rival ride-sharing company, announced its own temporary fuel surcharge on March 18; but this was the same except it was also charged on EV DiDi journeys.
Uber’s temporary fee also follows permanent price increases in March. A spokesman said at the time that March fare increases were already planned rather than directly responding to rising fuel prices.
Minimum wages have risen and some commuter journeys have become almost 40% more expensive than similar non-suburban journeys under permanent changes in March. According to the Sydney Morning Herald. Uber declined to detail the price increases.
When Uber announced permanent increases in mid-March, unleaded gasoline prices had exceeded 240 cents per liter. On Monday, when Uber announced the surcharge, the price of a liter of unleaded fuel was below 220 cents in most cities.
The Transport Workers Union (TWU), which has teamed up with ridesharing companies to reassure rideshare drivers, welcomed Uber’s surcharge.
“Rideshare drivers are struggling under skyrocketing fuel costs, and Uber’s actions recognize this with a meaningful cost reduction,” said Michael Kaine, the union’s national secretary.
The TWU is in talks with ride-sharing companies at the Fair Work Commission over the working conditions of drivers.
“We will continue to work with Uber and other platforms to ensure fair wages and conditions for rideshare workers as soon as possible,” Kaine said.
Food delivery company DoorDash worked with TWU on fuel rebate payments made by the company to delivery drivers from March 21 through April 30, without charging customers or businesses more.
Car or motorcycle delivery workers who travel at least 100 km per week are paid US$2.50 for every 50 km they travel each week, capped at a maximum of US$25.
Uber Eats offered the same program for two months, starting April 6.
