Uber and Lyft have rolled out expanded temporary fuel discount programs for drivers as the national average gas price topped $4 per gallon for the first time in four years amid the war in Iran.
Drivers who pay for fuel as independent contractors say the incentives do not fully offset the higher costs and added workload.
The national average price for regular gasoline reached $4.08 per gallon as of April 2, up $1.08 from a month earlier, according to AAA.
Margarita Penalosa, a full-time driver for both Uber and Lyft who also delivers for DoorDash and Grubhub in the Los Angeles area, said she increased her schedule to seven days a week from six to cover an extra $15 to fill her Toyota Corolla hybrid.
Uber expanded its fuel savings program through May 26.
Drivers and couriers can now receive up to $1 per gallon off through the Upside app, up from a previous maximum of 25 cents per gallon, depending on tier.
They can also get up to 21 cents off per gallon through Shell Fuel Rewards.
Combined with cash back on the Uber Pro Card, top-tier participants could save up to $1.44 per gallon.
Lyft launched a 60-day program, also running through May 26, with additional cash back on its Lyft Direct debit card: an extra 2% for Elite-tier drivers and 1% for Gold- and Platinum-tier drivers.
These stack with existing rewards and add up to 14 cents per gallon through Upside.
Lyft estimates potential savings of up to 98 cents per gallon for the highest-tier drivers.
DoorDash, Instacart, and other platforms announced similar temporary incentives.
The current programs rely on cash back and app-based discounts rather than per-ride fuel surcharges used in 2022.
Gig workers typically bear their own fuel and maintenance costs.
Companies described the updates as responses to rapid price increases triggered by the war in Iran.
Drivers have reported that the relief does not fully address their expenses or the need to work more hours.
Many say the discount programs, which often require using specific apps, debit cards, or maintaining high activity levels to unlock maximum value, fall short of covering the full impact of $4-plus gas on already thin profit margins.
Gig workers continue to absorb vehicle maintenance, insurance, and unpaid driving time themselves, with some increasing weekly hours or considering leaving the platforms as costs mount.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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