U.S. ride-hail drivers at career crossroads over record gas cost -Breaking
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© Reuters. FILEPHOTO: Taxis lined up at an Uber pick-up location as Lyft and Uber drivers organize a day-long action demanding that the ride-hailing company follow California law.2/4
Tina Bellon, Nivedita Balu
(Reuters] – Uber (NYSE) driver protests record U.S. fuel prices on social media. This comes as Uber raises its profitability outlook and some are wondering if it’s still worth driving.
After Russia invaded Ukraine, gasoline prices in the United States hit an all time high of $4.173 Tuesday. The current price of a gallon of gasoline in America is around 60% lower than the COVID-19 crisis.
Sergio Avedian (a ride-hail driver based in Los Angeles) said Monday that “there is no driver who’s not complaining regarding these high gasoline prices.”
Uber is available in the following languages: Lyft (NASDAQ:) Driver discontent is growing as ride-hailing pioneers try to put an end to the coronavirus pandemic by allowing customers to return in larger numbers.
Uber released a statement saying that the platform is only effective if drivers use it. Uber also stated that they will monitor fuel prices and pay attention to drivers in the weeks ahead.
Lyft stated in a statement that it cares deeply about driver experiences.
Uber Monday increased its core profit outlook for the first quarter on faster demand increases. February ride-hail trip numbers were only 10% lower than pre-pandemic 2019.
This demand recovery is dependent on a larger influx in drivers. Many people who left the sector during pandemic were not able to do so. Additionally, the pain at pump coincides well with the general price hikes of everything, from cars loans to tires. These increases add further pressure.
CASH-BACK SCHEMA
Drivers vented their frustrations online, and some even gave up on their cars.
Andrea Golde said that it was “just not worth” driving. The driver is near Columbus in Ohio.
Uber claimed that earnings for drivers remain higher than they were before the pandemic. However, gas prices have increased. Uber added that there has been a steady increase in active drivers from January to February. Driver numbers also increased during the last week of February.
In an effort to improve the situation, Lyft and Uber have formed a partnership with GetUpside. GetUpside offers fuel purchase cash-back programs.
GetUpside stated that it has seen over two million transactions by Uber and Lyft drivers in the last eight months. These drivers, on average earning $0.10 per gallon cash-back at gas pumps, have reported to GetUpside. According to GetUpside, registrations have increased over the past few weeks.
Uber claimed that more than 200 000 drivers have signed up.
Desperate drivers are also signing an online petition https://www.coworker.org/petitions/gas-prices-3 that urges Uber and Lyft to have passengers pick up the fuel tab.
It was started in 2018 but has been growing in popularity. 500 signatures have come in in the last week, Tim Newman (campaigns director at Coworker.org) said.
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