Uber to implement user surcharge to deal with soaring gas prices

Uber says it is adding a surcharge to all ride share and deliveries to help offset the rising cost of gas for its drivers.

Starting Wednesday, March 16, those using Uber to get from one place to another will see a 50-cent surcharge on every ride while Uber Eats customers will see at least a 35-cent surcharge on deliveries.

Uber says the surcharge is designed to reduce the burden of high gas prices, not to cover the full cost of a tank.

“We know drivers and delivery people are feeling the sting of higher prices at the pump,” said Laura Miller, Head of Policy and Communications for Uber Canada. “This consumer surcharge will apply to rides and deliveries with 100% going directly to drivers and delivery people.”

Uber says the fees will remain in effect for the next 60 days as they continue to monitor the price of gas over the coming weeks and months.

Gas prices have soared due to the Russian invasion of Ukraine and through the first 12 days of March, the average price across Toronto and the GTA has hovered around $1.779 cents/litre. Prices reached a record high of $1.909 back on March 10.

The Ford government promised to cut the price of gas by 10 cents per litre during the 2018 election campaign – a promise that has yet to be fulfilled.

Ford did eliminate the cap-and-trade system, a move that was intended to lower the price by 4.3 cents, but it triggered the federal carbon tax, negating the 4.3 cent cut.

In November, Ford maintained he would reduce the gas tax by 5.7 cents, but when pressed earlier this month to live up to that vow, he said it was contingent on the federal government lowering the carbon tax.

Alberta, meanwhile, recently announced a plan to temporarily pause its tax of 13 cents a litre on gas and diesel starting next month.