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News Every Day |

Uber, Lyft, and DoorDash are dangling new incentives as gas prices squeeze drivers. We break them down.

DoorDash launched an "emergency relief program" to combat rising gas prices on Monday.
  • Gas prices are soaring amid the war in the Middle East and hitting the gig economy hard.
  • Uber, Lyft, and DoorDash announced a series of measures this week to support drivers.
  • Uber and Lyft drivers have said that spiking oil prices were changing which trips they accept.

Uber, Lyft, and DoorDash are rolling out new incentives as surging gas prices hit the gig economy where it hurts.

The three companies have introduced expanded discounts and cashback schemes over the past few days, as drivers and delivery workers have said they're getting more selective about the routes they take.

The war in the Middle East has sparked a global oil shock, with prices regularly blowing past $100 a barrel.

The impact is being felt at the pumps, with the average price of a gallon of gas in the US having climbed by nearly a dollar in the past month, according to AAA data.

Several Uber and Lyft drivers told Business Insider earlier this month that they're prioritizing the most profitable trips to protect their earnings, and calls have been growing among drivers online for the companies to step in to support them.

Sergio Avedian, an Uber driver and senior contributor to the gig-driver advocacy blog and YouTube channel The Rideshare Guy, said the incentives are "a step in the right direction, but they are largely symbolic and fall short of offsetting the real impact of rising gas prices on drivers."

Some of the benefits require drivers to use the companies' own debit cards, for example, Avedian said.

"In many cases, these programs simply extend existing benefits rather than meaningfully improving driver earnings," he said.

Here are the measures aimed at high gas prices that each company has announced so far:

DoorDash

DoorDash delivery workers who drive at least 125 miles a week can get "relief payments" to put toward gas, the company said on Monday. The payments start at $5 a week and go up to $15 for drivers who travel at least 250 miles a week.

Workers who use DoorDash's Crimson debit card also get 10% cash back on gas purchases.

Together, the two benefits could save drivers up to $1.90 a gallon, DoorDash estimated.

The benefits are set to end on April 26, DoorDash said.

Uber

Uber announced benefits on Thursday aimed at offsetting rising gas prices.

Both Uber's ride-hailing drivers and delivery workers are eligible for up to $1 in cash back per gallon of gas through the cash-back app Upside, as well as additional discounts from the gas station chain Shell. Those offers start on Friday and end on May 26.

Both drivers and couriers can get an additional 15% off gas when they use the Uber Pro debit card, though the exact discount varies depending on a driver's Uber status.

Those incentives can save Uber gig workers up to $1.44 a gallon, Uber said.

For delivery workers, Uber is also offering mileage-based payments similar to DoorDash's, starting at $5 for drivers who travel at least 125 miles a week and rising to $15 for those who drive 250 miles. The payments are set to start on Monday and last through May 3, Uber said.

Lyft

Lyft's measures, which start on Friday and last through May 26, include 2% cash back for drivers with Elite status in the app's rewards program and 1% cash back for drivers at the Gold and Platinum tiers when they use a Lyft Direct debit card.

Drivers can also get $0.14 in cash back and $5 off a fill-up through Upside, the company said on Wednesday.

Together, those incentives are worth up to $0.98 a gallon, Lyft said.

Have a tip? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Read the original article on Business Insider
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