Uber says UK fuel crisis has had ‘no impact’ while drivers struggle
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A driver uses the Uber app to drop off a passenger in London.
Chris J. Ratcliffe | Bloomberg via Getty Images
Uber has said the surge in demand for fuel across the U.K. that has left many gas stations empty is not affecting its business, while some drivers say the burden is being passed onto them.
British drivers have been panic buying gasoline in recent days, leading to lengthy lines and gas station closures. The U.K. is currently experiencing a shortage in truck drivers. This has hindered delivery and restricted fuel supply. Now, the U.K. is planning to send military personnel to transport fuel.
CNBC reported that Uber said the fuel problems have not had any impact on its service, despite the chaos.
According to a spokesperson, Uber said it was monitoring the situation carefully and is continuing to talk with drivers in the hope that the fuel issues will be addressed quickly.
CNBC spoke to Nader Awad, an Uber driver who said it was “challenging” and that he had been spending too much time searching for gas stations that would fill him up. Then he would sit in long lines. According to him, “Given that we are self-employed and spend time searching for petrol or diesel, it’s a waste of time.”
The platform is not possible if Uber drivers don’t have enough gas to fill their cars.
Awad claimed that he was part of a queue at a station to fill up his car with gas on Wednesday, but that it took him over 45 minutes to get there. And once he got there he was only allowed to put £30 ($40) worth of diesel into his nine-seater Mercedes, which goes through about £250 worth of diesel in a week.
No support
Awad, a former British Gas manager who lives in Walthamstow in east London, said Uber had not offered him any support. Bolt and Ola were also affected by the situation, he said.
CNBC reached the companies but they were unable to immediately respond to questions about driver support, or how U.K. fuel problems were affecting their businesses.
Akram Kader from Uber, a driver for the company, said that most pumps have been closed by now and that drivers will need to wait 30-60 minutes before they can access any that remain open.
Kader from Fulham said, “As a driver we have to ensure we are available to perform the job.” “They [Uber] won’t feel the pain.”
He stated, “If my tank runs dry, and if I’m on a long journey, I must refuse this job.” “I have no other choice”
Fuel isn’t the only issue
Prior to the fuel shortage, ride-hailing apps were struggling to meet demand in the U.K. CNBC heard from multiple customers that apps had failed to connect them with drivers in the last few weeks. This led to them missing meetings and being left stranded after a night out.
Some customers claimed that the “surge pricing” system, which is activated when apps are busy, has resulted in exorbitant costs. According to customers, the problem tends to happen late at night or on weekends.
It all boils down to supply-demand. The problem is that there aren’t enough drivers available to handle all requests. It has also led to rising prices.
Markus Villig is the co-founder of Bolt and its CEO. He said last week on CNBC’s SquawkBox Europe that Bolt customers have “higher prices than ever.”
Uber faces the exact same problem. CNBC was told by the company that the U.K. has seen increased demand, while Uber’s U.K. operation returned to prepandemic levels in May. This means that there is more demand in many places than in prepandemic times. The demand is now 22% higher than it was before March 2020, and 30% higher for Sheffield. It’s also up in Nottingham by over 40%.
— Additional reporting by CNBC’s Chloe Taylor.
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