Rising gas prices push motorbike taxi services, taxi drivers are angry: ‘It’s difficult’ – National
Record high gas price in Canada is causing concern to ride-hailing and taxi-hailing workers across the country, with many struggling to make ends meet.
For the first time this year, the Canadian national average for gas prices has surpassed $2 per liter this year, according to GasBuddy and CAA. That means drivers are spending more money refilling their tanks and working longer hours on the road.
Earla Phillips, a longtime Uber and Lyft driver in Toronto, said that before gas prices skyrocketed, half a tank of gas in her $30 sedan would help her get through the day. Now, she finds herself spending $50 and working overtime to make a difference.
“It was very difficult,” Phillips told Global News.
“Nearly doubling our operating costs with gas prices means we are… getting paid a lot less than we were a year ago – and that is really hard,” she said.
Linda Caswell, who started driving for Uber Eats in February as a side gig to earn extra money, says she’s making almost half of what she was when she started.
With income dwindling, Caswell is now considering spending less time on the road and looking for other options at home remotely to help pay off debt faster.
“It was really unhappy,” a city worker from Mississauga told Global News.
The cost to fill up a 2022 Honda Civic LX in June within 3 years is shown as of June 6, 2022.
Graphics Global News
Taxi drivers are also feeling pinched by soaring gas prices, largely due to Russia’s invasion of Ukraine and corresponding sanctions on Moscow.
Mohan Kang, president of BC . Taxi Associationsupposed to be an essential service, there are no exits or shortcuts when trying to navigate around sky-high fuel costs.
“We are very concerned about the rising gas prices,” he told Global News.
“I can park my car at home and use it only when necessary, but in the case of a taxi, we have to be on duty to provide this service to the community.”
Kang said there is a “strong” direct effect on taxi drivers, as higher fuel costs are eating away at their daily incomes.
Do fuel surcharges help?
To help offset the high cost of gas, both Uber and Lyft introduced a fuel surcharge in March and remain in effect until further notice.
Lyft added $0.55 fuel surcharge to each trip and Uber charges riders an extra $0.50 per ride.
“It is important to say this surcharge is temporary and is designed to try to maintain high income during these difficult times.” Uber said in a post announced the changes on May 11.
However, that has done little to solve the driver’s problems.
Caswell says the $0.35 surcharge for Uber Eats deliveries is ends on June 15 is a “careful amount” that “doesn’t make a dent.”
Phillips says a flat rate of $0.50 is “not enough,” especially for longer trips. As discussed on online forums, most drivers are in favor of charging per kilometer, she said.
“Quite often, we do longer trips and it just doesn’t make any impact or compensate us fairly due to the increase in operating costs.”
Fixed adjustments can help relieve driver stress, experts say, but it won’t be enough to combat rapid increases in fuel prices, which are expected to remain high or even high. increase in the coming weeks and months.
“It’s a very small surcharge and I don’t think it explains the dramatic jump in fuel prices,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
The added cost of fuel could discourage motorists from using these apps, he said.
“It is a very precarious matter. It’s hard to navigate, given the fact that many drivers and many delivery services rely on low fees for success.”
Canada’s car-sharing app Uride added gas fees in most of the cities it operates, as well as increasing prices per kilometer and per minute to reflect the extra costs motorists incur due to gas and inflation.
Besides closely monitoring gas prices and adjusting fares as needed, the company told Global News it is checking in with drivers weekly to see how they’re doing and what challenges they face.
Cody Ruberto, Founder and CEO of Uride, said in an email: “It’s scary for a lot of drivers.
“Gas is not the only challenge motorists face. Some drivers have had to wait for auto parts for months due to short supply.”
More and more drivers are turning to carpooling to reduce their gas costs.
PoparideThe company, which provides carpooling between cities in Canada, has seen an 80% increase in the number of drivers signing up with its platform since March 1, 2022, the company says. with Global News.
As gas prices skyrocketed, Montreal’s bike culture was seen as a role model for the rest of the country
Joe Kitos, vice president of marketing at Poparide, said: “At the end of May, we saw a record 800% year-over-year growth as gasoline prices and inflation hit new highs. ,” Joe Kitos, Poparide’s vice president of marketing, said in an emailed statement.
While the company hasn’t announced the fuel surcharge, it has adjusted the maximum price from 15 cents per kilometer to 17 cents per kilometer.
Additionally, drivers have flexibility in setting prices per ride, as long as they don’t exceed the maximum fare across our platform, says Kitos.
How can drivers be supported?
In an email response to Global News, Uber said the recent spike in gas prices has had more of an impact on drivers ordering rides and deliveries.
However, current earnings are among the highest the company has ever seen for drivers nationwide, according to Uber.
In Canada, like in the United States, Uber drivers are considered independent, self-employed contractors.
By contrast, UK Uber drivers are classified as workers, entitled to a minimum wage, paid leave and pension plans. The change was introduced in March 2021 following a Supreme Court decision.
Ming Hu, a professor of business operations and analytics at the University of Toronto’s Rotman School of Management, said that to better support longtime Uber drivers in Canada, similar legislation that requires a distributed platform would be needed. type they are employees.
“In that case, drivers will avoid any gas price fluctuations and the company will absorb that volatility,” he told Global News.
When all is well, Canada’s Uber and Lyft drivers have the flexibility to arrange their own working hours, but their income is largely dependent on the rates offered by the ride-hailing companies. .
“We have no control over the prices we pay, and we don’t have the power to negotiate those prices,” says Phillips.
She said raising rates while the industry was reeling from the effects of the gas price hike would only be fair to drivers “who are hurting.”
Uber says it is always looking for feedback through multiple channels from drivers using the platform.
Next week, the company is planning to host a roundtable with drivers in Toronto.
“I really hope that Uber changes something because I want to keep doing this… but the way it is, it’s not really something that I will be able to do anymore,” Caswell said.
© 2022 Global News, a division of Corus Entertainment Inc.
