New York
Act Daily News
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Amazon, Uber and Lyft lately ended further gas surcharges as fuel costs dropped late final yr. But there’s a catch.
Beginning final March, Uber riders have been paying an additional $0.45 or $0.55 in charges per journey and an extra $0.35 or $0.45 for Uber Eats meals supply, relying on the placement. Lyft riders have been paying a $0.55 surcharge per journey.
Amazon in April additionally tacked on a $5 gas and inflation surcharge on third-party retailers who promote on its web site and make the most of its success companies, equivalent to storing, packing and transport.
These corporations added fuel surcharges in response to skyrocketing vitality costs following Russia’s invasion of Ukraine final yr. Gas costs swung wildly in 2022: At one level the nationwide common for a gallon of fuel was above $5 for the primary time ever, in keeping with AAA. The spike set off recession alarm bells, worsened inflation and crushed shopper confidence.
But fuel costs fell within the fall and, by the top of November, the nationwide common for a gallon had dropped under the value of fuel Americans have been paying earlier than Russia’s invasion of Ukraine. Today, the typical stands at $3.36 a gallon, in keeping with AAA, down from $3.50 a month in the past.
That decline led corporations to finish gas surcharges, a transfer that has blended advantages.
Fuel surcharges went on to ride-share drivers and have been meant to assist them soften the blow of excessive fuel costs.
Some drivers, who’re impartial contractors, had mentioned they have been nonetheless not sufficient to assist them afford fuel. Without them, drivers may have much less of a cushion to pay for fuel.
Uber ended the surcharge in January and mentioned that it has rolled out different choices to assist drivers to avoid wasting on fuel, together with a debit card through which drivers can rise up to 10% money again on fuel. Lyft ended it in September and launched an expanded fuel rewards program for drivers.
In January, Amazon eliminated the surcharge as a separate price for companies – however it raised its normal success charges to account for greater prices.
“These cost increases have not attenuated as quickly as we had hoped, so we will adjust our standard [fulfillment] fee rates to account for these increased costs,” Amazon mentioned in a observe to sellers.
It’s unlikely that fuel costs will spike this yr.
OPIS expects the typical worth all through the course of 2023 to return in round $3.45 a gallon, down from $3.96 final yr.
Source: www.cnn.com