Chinese rideshare giant DiDi has announced a fuel surcharge starting next week.
DiDi has become the first rideshare company in New Zealand to introduce a surcharge for passengers amid soaring fuel prices.
The Chinese rideshare giant, part-owned by Uber, confirmed to the Herald that a fuel surcharge of 5c per kilometre will take effect on Wednesday, March 25, in a move targeted at “supporting drivers” and keeping them on the road.
The surcharge will be included in fares for every trip across Auckland and Wellington (the two New Zealand cities DiDi operates in), and will be passed on entirely to the driver without being subject to service fees.
In the meantime, DiDi said eligible drivers will receive a bonus of up to $40 in the week before the surcharge comes into effect.
It comes as fuel prices have soared across the country as the conflict in the Middle East continued into its third week.
The average price of unleaded 91 petrol in New Zealand passed $3 a litre on Monday for the first time since June 2022, according to fuel tracking app Gaspy – a significant increase from the $2.49 average 16 days ago.
DiDi Australia & New Zealand head of external affairs Dan Jordan said rising fuel prices are impacting drivers’ ability to earn.
“At DiDi, we recognise the ongoing pressure that rising fuel prices are placing on our drivers in Auckland and Wellington, with higher costs at the pump directly affecting their ability to earn on the platform,” Jordan said.
“Supporting our driver community remains a priority. We continue to review our pricing structure and service fees with the goal of improving driver earning opportunities, and we hope that these latest initiatives ensure New Zealand rideshare drivers receive additional support during a period of higher operating costs.”
Uber, which dominates the rideshare market in New Zealand, says it is “monitoring” the situation.
Rideshare drivers spoken to by the Herald say rising fuel prices have hit hard, with one saying it has increased costs by about $100 a week.
Anita Rosentreter, deputy secretary of Workers First Union, which has about 1000 Uber drivers as members, says fuel prices have had a “massive impact” on drivers.
“It’s obviously a really big cost component for drivers, and the increases recently have been significant,” Rosentreter said.
“They don’t have any control over fare prices, so they don’t have any ability to, at the other end of it, try and bring in more money to compensate.”
Rosentreter says many full-time drivers work 50 hours a week.
“It’s a big cost and they’re going through a lot of fuel.”
An Uber spokesperson said: “We recognise recent fuel price increases are having an effect across a wide range of industries, including for driver partners and delivery people who use the Uber and Uber Eats app to earn.
“Uber is actively monitoring conditions as they evolve and regularly reviews ways to support driver partners and delivery people as circumstances change.
“We are always looking for ways we can continue to support them, including our Uber Pro programme, which offers discounts on fuel and EV charging, as well as other savings to help reduce their expenses.”
In 2022, Uber temporarily increased prices on rides to account for operational costs such as petrol and a driver shortage.
Bolt, another player in the industry, said: “We are well aware that fuel costs are an important component of driver earnings, so we are closely monitoring the impact of rising fuel prices.
“We are currently assessing our pricing and driver earnings in New Zealand, and we are preparing to introduce targeted measures to help drivers manage the short-term cost pressures. Our priority is to maintain the balance between driver costs and rider pricing to ensure that our platform remains fair and sustainable for all parties.”