Leslie Sherman-Shafer drives for Uber in the San Francisco Bay Area. She usually fills her Toyota Corolla for about $25, but since the recent upheaval in the Middle East, her gas bill has jumped to nearly $40. This rise contributes to the national average gas price, which hit $3.99 per gallon, a 34% spike in just a month, as reported by AAA.
Leslie says she’s working extra hours to make up for these costs. “We don’t get reimbursed for gas. Tips are how we manage,” she explains. While some riders have been generous with tips, many haven’t contributed anything at all.
Driving is essential for many Americans. About 27% of civilian workers reported that driving is a key part of their job, according to U.S. Bureau of Labor Statistics. This includes not just Uber drivers but also delivery workers, electricians, and other service providers.
The ongoing conflict has disrupted global oil supplies, leading to financial strain for countless drivers like Leslie. “With everything going up, it’s impossible to save a dime,” she says.
Some companies do offer compensation for fuel. For example, Alpine Maids in Denver pays its cleaners 72.5 cents per mile driven to clients’ homes. Yet, as gas prices continue to climb, Chris Willatt, who runs the company, notes that this reimbursement isn’t going as far. “Our maids are feeling the pinch, and we’re trying to help,” he says.
Molly Kenefick, who runs Doggy Lama Pet Care Inc. in Oakland, has raised her gas reimbursement rate to 80 cents per mile for drivers. She’s also planning a hike in service prices. “I want to be fair to my clients, but I have to make these adjustments,” she shares.
Gig economy platforms like Uber and DoorDash typically don’t reimburse for gas, but some are now offering temporary fuel incentives. For instance, DoorDash has implemented a weekly fuel payment for drivers who travel significant distances while delivering.
Sarah Noell, who delivers for DoorDash, mentions that while these incentives help, she still sees fewer customers adding tips. “Gas costs are eating into my earnings,” she says, making it necessary for her to only accept orders that make financial sense.
The impact of rising fuel costs isn’t just confined to the U.S. In the Philippines, drivers of diesel-powered jeepneys recently went on strike to protest higher prices. Meanwhile, in France, drivers protested by driving slowly around the Paris ring road, calling for government action on rising diesel costs.
In the U.S., diesel prices have surged by 44% in the last month alone, creating immense challenges for businesses reliant on diesel vehicles. Rachel Hunter, who runs a junk removal company in Phoenix, has seen her diesel costs rise sharply from $3.62 to $6.09 per gallon. “It’s a tough balancing act,” she says, worried about maintaining a good reputation while adjusting her prices.
Fuel cost spikes impact everyone from individual drivers to large businesses. With rising prices affecting their bottom lines, many are left seeking solutions that fit within an already strained economy. Companies and workers alike are feeling the pressure, and everyone hopes for relief in the near future.
For more on the financial impact of rising gas prices, you can visit the AAA website.
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