AP

Lyft details fuel surcharge to help offset rising gas prices

Mar 16, 2022, 10:24 AM | Updated: Mar 17, 2022, 9:33 am

Lyft will add a fuel surcharge of 55 cents to each ride given by drivers to offset surging gasoline prices.

The company said earlier this week that it would be following Uber, which also announced surcharges this week, and this week it released details of its plan.

The company said in a blog post that the surcharge will be effective beginning next week, with all of the money going directly to its drivers. The measure will remain in place for at least the next 60 days, Lyft said.

The surcharge is not applicable in New York City due to a recent 5.3% increase in the minimum earnings standard for drivers there. The company is also working to have the surcharge implemented in Nevada, but said the state’s regulatory requirements prevent an immediate rollout there.

Lyft drivers can also apply for a Lyft Direct debit card to get an increased 4% to 5% cash back on gas purchases through June 30. Lyft also has a partnership with GetUpside that was announced in January that can help most of its drivers get cash back on gas purchases.

“We’ll continue monitoring gas prices, listening to how drivers are being impacted, and finding ways to support them as things evolve,” the San Francisco company said.

The company’s shares rose 4% Wednesday.

DoorDash said Tuesday that it will give drivers 10% cash back when they buy gas using DasherDirect, the company’s debit card designed for drivers. The company said it will also start paying weekly bonuses for drivers who drive the most miles. And Uber announced that it would start charging customers a fuel fee to offset higher costs for its delivery and ride-hailing drivers.

Russia’s intensifying war in the Ukraine has helped to push gas prices higher in the U.S. The average U.S. price of regular-grade gasoline rose 79 cents over the past two weeks to a record-setting $4.43 per gallon (3.8 liters).

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Lyft details fuel surcharge to help offset rising gas prices