Uber is being encouraged to consider increasing fares and paying for petrol used by its drivers as fuel costs increase. Photo / Arkadiusz Ziolek
With petrol prices rising across the country, some Uber drivers want the ride-share company to raise fares or even pay the cost of petrol entirely.
The ride-hailing company declined to answer if fare prices would increase, saying it is expanding access to EV options, which helps to lower operating costs over time.
Petrol prices are expected to hit at least $3 a litre in some places, as international oil markets become unstable as the Middle East crisis deepens.
The average price of unleaded 91 petrol rose 14c to $2.64 over the weekend, according to fuel tracking app Gaspy.
Wellington driver Josh Thomas said workers wouldn’t be able to cope if prices go past $3 a litre.
“Drivers are going to work longer hours to make up the lost money and expenses, or drivers are going to cut the hours back because it costs too much to do the job.”
In 2022, Uber had a temporary price hike on rides to account for operational costs such as petrol and a driver shortage.
Christchurch driver Dave, who asked to only go by his first name, didn’t bother working today with petrol prices so high and bad traffic.
“You just can’t afford to be driving around wasting fuel at approaching $3 a litre,” he said.
Driving a hybrid car, his fuel costs are about a quarter of his expenses, excluding his labour. With petrol prices on the rise, he can see the proportion of that expense climbing by 10 to 20%.
“That is going to be a major impact.”
Dave felt frustrated drivers had no power over pricing and wanted to see fares go up.
“All you can do is control your supply of labour.
“I think eventually there’ll be desperation... It’s just only going to get worse.”
Dave prefers to work during the day to avoid the dramas of late Friday and Saturday nights. However, he said he may have to start working those high-return shifts.
An Uber spokeswoman told the Herald it was “expanding access to EV options with incentive programmes that can help lower their operating costs over time”.
The company declined to answer whether it would be increasing ride prices or offering drivers a petrol subsidy while prices are on the rise.
Uber drivers are given discounts on petrol from BP stations of up to 15c a litre, depending on their Uber Pro tier.
Uber hopes to become a zero-emission platform by 2040, encouraging drivers to transition to electric vehicles.
“We recognise recent fuel price increases are having an effect across a wide range of industries, including for drivers who use the Uber app to earn,” the spokeswoman said.
“Uber is actively monitoring conditions as they evolve and we regularly review ways to support driver partners as circumstances change.”
The spokeswoman pointed to the company’s Uber Pro programme, providing drivers with discounts on fuel and EV charging, among other things.
“We are always looking for ways we can continue to support drivers.”
Workers First Union deputy secretary Anita Rosentreter wants Uber to pay for all of the drivers’ fuel.
“I think that they should pay for the gas. It’s a cost of doing business and it’s their business that is benefiting.”
Last year the Supreme Court ruled that four drivers were employees rather than contractors.
But a law change this year created a new “specified contractor” category, making it harder for some other platform workers to bring the same argument. Uber continues to treat drivers on its platform as contractors.
Thomas said he loved the freedom of being a contractor but wants to be told how much he’s earning for jobs, as contractors commonly are.
Rosentreter believed the Supreme Court win for the drivers means all Uber drivers should be employees, and the company bears the sole responsibility for all of the costs associated with doing business – including petrol.
“They wouldn’t be treated that way if Uber was correctly recognising them as employees.”
Rosentreter said the company should at least increase fares to reflect the rising cost of the service.
“[Drivers] already earn a pittance.”
A July 2018 survey by the New Zealand Rideshare Drivers Network revealed 76% of rideshare drivers in Aotearoa received less than the minimum wage (then $16.50 per hour).
Rosentreter said drivers should either be genuine contractors with the ability to dictate price, or be employees with more rights and protections.
Being an Uber driver was becoming less sustainable with rising fuel prices, she said.
“They’re suffering that sort of downward pressure and have no ability to push back because they can’t lift prices.”
Sammy Carter is a journalist for the New Zealand Herald covering news in the Wellington region. She has previously worked at the Rotorua Daily Post.