FedEx, Uber, Lyft Drivers Press Help Button Amid Rising Gas Prices: WSJ

FedEx Corporation FDXUber Technologies Inc UBER, and Lyft Inc LYFT have imposed new or higher fuel surcharges on customers as energy prices shoot higher amid Russia-Ukraine War.

In an online petition being circulated, FedEx Ground contractors are asking for a cash injection, either through a temporary payment or additional compensation per stop, writes Wall Street Journal.

“The reality of the current climate is that many [contractors] are on the verge of financial collapse,” according to the petition to FedEx executives. 

At FedEx Ground, the fuel surcharge was 11.75% at the end of 2021 and hit 16.25% at the end of March. The company in early April also adjusted its fuel surcharge tables so that as fuel prices rise, the surcharge goes higher.

Uber and Lyft shifted some of the burden to riders by introducing a temporary fuel surcharge in mid-March. Riders now pay between 45 cents to 55 cents a trip based on their location.

Uber and Lyft, already dealing with a labor shortage that has pushed up fares, have acknowledged that they need to take steps to appease drivers. 

Reducing their take rates or absorbing high gas prices are costly options because both companies are under pressure from investors to show profits. Further raising fares could dampen rider demand, analysts say.

Posted In: Russia-Ukraine WarUkraine crisisUkraine-Russia WarNewsGeneral

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