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Uber raises service prices to offset fuel costs

Uber raises service prices to offset fuel costs

By Arab Canada News

Published: March 17, 2022

 

Uber announced additional fees with rising fuel prices in recent weeks, adding that it is time for drivers to consider environmentally friendly alternatives.

 

Starting Wednesday, those taking Uber or ordering Uber Eats will notice additional charges on their bill, which the company says addresses the extremely high fuel prices at gas stations.

 

The rideshare company announced the additional fees with rising fuel prices in recent weeks, amid global uncertainty caused by the Russia-Ukraine crisis.

 

"Passengers will pay an additional fee of $0.50 per ride, and on Uber Eats where trips are shorter, the consumer fee will be adjusted to cover the equivalent of $0.35 as an additional charge per delivery. Uber wrote in a statement last week, "100% of the additional fees will go directly to drivers and delivery staff."

 

The company says it is time for drivers to consider environmentally friendly alternatives. Uber provides an additional $1 per ride for drivers who switch from gas-powered vehicles to electric vehicles.

 

It is unclear whether the additional cost also applies to food delivery by bike.

 

Inflation figures in Canada showed on Wednesday that fuel costs are among the biggest financial burdens currently.

 

Last month, Canadian car drivers paid 32.3 percent more at gas stations than they did at the same time last year.

 

In Vancouver, the fuel price oscillated slightly above or below $2 for two weeks, which is much higher than the national average of $1.80. 

 

Meanwhile, Alberta recently announced a plan to temporarily halt its taxes.

 

Alberta Premier Jason Kenney said: "Alberta will end the collection of the provincial fuel tax, which means the pump price will drop by 13 cents per liter, putting money back into the pockets of Albertans."

 

The changes will take effect on April 1.

 

The British Columbia government announced it has no plans to follow Alberta's example.

 

Editor: Dima Abu Khair

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