With so much of the world dependent on Russian oil, the strong global response to the country's attacks on Ukraine has sent the price of gas spiking in many countries.
The price of a gallon of gas in the U.S. was, according to AAA data, $4.3 on Wednesday. This puts it at 11% higher than last week and over 30% higher than last year.
Ride-Share Companies Are Raising Prices In A Domino Effect
In a domino effect, ride-share companies are raising prices to make up for the cost of fuel with "temporary surcharges" — this week, (LYFT) followed Uber (UBER) and added a $0.55 fuel surcharge to all of its trips for the next 60 days.
"This will help offset fuel costs, which also helps more drivers stay on the road," the company said in a statement. "Drivers can expect these additional earnings for at least the next 60 days."
Uber has added a similar surcharge of 45 or 55 cents to each ride and 35 to 45 cents on each Uber Eats order earlier this week.
Who Is Affected By This Surcharge?
Certain places, including New York City and Nevada, will not be affected by the surcharge.
That is because the company had already raising minimum driver earnings by 5.3% to make up for increased expenses, and local laws prevent the company from rolling it out in a sudden manner.
Drivers who use a Lyft Direct debit card will also get 4% to 5% back on gas.
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The surcharge, which is meant to offset the cost of gas and will go directly to drivers, is supposed to be temporary in the hopes that the war is brought under control and gas prices stabilize.
But given that Ukrainian cities continue to face shelling and more than three million Ukrainians have become refugees in neighboring countries, the problem risks following the path of the pandemic and dragging out for far longer than anyone can anticipate.
Will This Make Us Take Fewer Lyft And Uber Trips?
While these surcharges will not make a huge difference to the cost of a single trip, rising prices in general are certainly being felt by those who drive themselves.
According to a recent survey by Autoinsurance.com, 90% of drivers in the U.S., UK and European Union countries were at least "slightly" concerned about being able to afford gas. About 16% were "extremely" concerned while 20% are "moderately" worried.
Will this mean we'll be driving less and taking fewer Lyft and Uber rides?
It may be too early to tell but many are already taking measures to lower their gas bills — 45% of drivers said that they've already reduced the amount and length of their trips, while 31% cut costs in other areas to compensate for rising gas prices.
