(NEXSTAR) — Gas prices across the country are spiking higher as war continues in Ukraine — now, an Uber ride is going to get a little more expensive as well as the company tries to offset its drivers’ fuel costs.
Uber announced Friday that new surcharges will take effect March 16. Depending on location, a fee of $0.45 or $0.55 will be tacked on to each ride.
Uber Eats customers will see an additional $0.35 or $0.45 added to their bill.
Uber says 100% of the surcharge money will go straight to the workers.
“We know that prices have been going up across the economy, so we’ve done our best to help drivers and couriers without placing too much additional burden on consumers,” Liza Winship, head of driver operations for U.S. and Canada, said in a statement. “Over the coming weeks we plan to listen closely to feedback from consumers, couriers and drivers. We’ll also continue to track gas price movements to determine if we need to make additional changes.”
The company also announced that it will be providing incentives, such as $1 more per trip up to $4,000, for drivers who switch to electric vehicles.
News of the surcharge comes as gas prices pushed higher in several states Friday. Nevada, now averaging $4.93 per gallon, may soon become the second state, along with California, to crest the painful $5 mark.
Ciara Smith, an Uber Eats driver in New Mexico, told Nexstar’s KTSM earlier this week that she is now reconsidering her job.
“It’s like I’m making money to buy gas,” said Smith, whose Nissan Altima she says she used to fill up for between $20 and $30, but now pays over $50.
How much Uber’s current surcharges help out its drivers will depend on the price of oil in the coming days and weeks.
Uber says that the surcharge amounts are based off the “average trip distance and the increase in gas prices in each state” and are temporary for at least the next 60 days and will be reassessed then.
Nexstar reached out to Lyft to find out if they were instituting a similar policy but did not hear back by publishing time Friday evening.