Rideshare drivers are facing challenges as the national average for regular gasoline has surpassed $4 per gallon, up more than a dollar in the past month, according to an April 4 report. This increase is leading some drivers to pause or quit due to shrinking profit margins, with companies like Uber and Lyft not reinstating previous fuel surcharges but instead offering modest cash-back perks through their debit card programs.
The surge in gas prices comes amid global supply disruptions near the Strait of Hormuz, which have affected about 20% of the world’s oil supply and pushed crude oil above $100 per barrel. Rideshare companies have responded differently compared to similar situations in 2022. Instead of reintroducing a fuel surcharge for riders, Uber now offers $1 off per gallon via Upside plus 5% back on its Pro card, while Lyft provides up to 2% back through Lyft Direct. DoorDash offers its drivers a Crimson card with 10% back on gas purchases.
In another development, Uber announced it will acquire Berlin-based luxury chauffeur startup Blacklane pending regulatory approval by year-end. Blacklane operates across major cities worldwide and will support Uber Elite, a premium service currently available in Los Angeles and San Francisco with New York City launching soon. The acquisition is expected to strengthen Uber’s position among corporate and high-net-worth travelers by providing amenities such as airport meet-and-greets and round-the-clock phone support.
Uber has also expanded its “Go Electric” electric vehicle grant nationwide after pilots in several states. Drivers can now receive up to $4,000 toward purchasing a used electric vehicle (EV), with partner discounts raising potential savings to $6,500. Applications for this program open April 16. Over 286,000 EVs are active on Uber’s network globally—a significant increase from last October—with company data showing that rideshare drivers are adopting EVs at rates much higher than average U.S. motorists.
Uber CEO Dara Khosrowshahi recently confirmed that tens of thousands of Teslas equipped with Full Self-Driving (FSD) systems are operating on the platform under current policies requiring at least one hand remain on the wheel when driver assistance is engaged. There have been incidents involving FSD use during rides; legal scrutiny continues regarding advanced driver-assistance systems.
Waymo co-CEO Dmitri Dolgov said his company plans eventually to bring self-driving technology into personally-owned vehicles—particularly targeting lower-density areas—and may license its autonomous tech beyond ride-hailing services.
