Record gasoline prices in Canada are raising concerns for taxi and travel app workers across the country, with many struggling to make ends meet.
The Canadian national average of gas prices has topped $ 2 a liter for the first time this year, according to GasBuddy and the CAA. This means drivers spend more to fill tanks and work longer hours on the road.
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Earla Phillips, a longtime Uber and Lyft driver in Toronto, said that before the gasoline price increase began, half a tank on her $ 30 sedan would allow her to spend the day. He is now spending $ 50 and working overtime to make up the difference.
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“It’s been very difficult,” Phillips told Global News.
“Almost doubling the cost of operating with gas prices means they pay us a lot less than just a year ago, and that’s very difficult,” he said.
1:58 Gas prices will skyrocket across Canada in the coming days, weeks Gas prices will skyrocket across Canada in the coming days and weeks
Linda Caswell, who started driving for Uber Eats in February as a side performance to earn extra money, said she is earning almost half when she started.
With earnings running out, Caswell is considering spending less time on the road and looking for other remote options at home to help pay off his debt faster.
“It’s really discouraging,” the Mississauga city worker told Global News.
The cost to fully fill a 2022 Honda Civic LX in June for three years is shown on June 6, 2022. Global News Chart
Taxi drivers are also suffering from rising petrol prices, driven in large part by the Russian invasion of Ukraine and the corresponding sanctions on Moscow.
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Mohan Kang, president of the BC Taxi Association, said that as an essential service, there is no escape or shortcut to try to navigate the high costs of fuel.
“We are very concerned about the rise in the price (of gas),” he told Global News.
“I can park my private car at home and use it only when it’s needed, but in the case of taxis, we have to be on the road to provide that service to communities.”
Kang said there is a direct “drastic” impact on taxi drivers as higher fuel costs are consuming their daily income at home.
Does refueling help?
To help offset the high gas costs, both Uber and Lyft introduced a fuel surcharge in March that is still in effect until further notice.
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Lyft has added a $ 0.55 fuel surcharge to each trip, and Uber charges users an additional $ 0.50 for each trip.
“It’s important to say that this surcharge is temporary and is designed to try to keep profits high during this difficult time,” Uber said in a post announcing the changes on May 11th.
Read more: Uber to add “fuel surcharge” to shared travel, Uber Eats price
However, this has done little to solve the problems of drivers.
Caswell said a $ 0.35 surcharge for Uber Eats deliveries ending June 15 is an “awkward amount” that “wasn’t making a dent.”
Phillips said a $ 0.50 flat rate “isn’t enough,” especially for longer trips. As discussed in online forums, most drivers are in favor of seeing a surcharge per mile, he said.
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“Very often, we are making longer trips and it just doesn’t affect us or compensate us fairly for the increased operating costs.”
0:38 Uber adds fuel surcharge to offset rising gas prices Uber adds fuel surcharge to offset rising gas prices – March 11, 2022
Experts say fixed adjustments may offer some relief to drivers, but they are not enough to offset the rapid rise in fuel prices, which are expected to remain high or even rise in the coming weeks and months.
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“It’s a very small surcharge and I don’t think it takes into account the drastic jump in fuel prices,” said Patrick De Haan, head of oil analysis at GasBuddy.
Read more: Toronto is considering raising taxi fares to combat gas costs
The added costs of fuel could drive drivers away from using apps, he said.
“It simply came to our notice then. It’s difficult to navigate, because many of these drivers and many of these delivery services depend on low rates for success. “
2:04 New shared travel company operating in Kelowna New shared travel company operating in Kelowna – May 7, 2022
The Canadian shared-travel app Uride has added gasoline rates to most cities where it operates, as well as increased the rate per kilometer per minute to reflect the additional costs that drivers have to incur due to gas. and inflation.
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In addition to closely monitoring gasoline prices and adjusting rates as needed, the company told Global News that it monitors drivers weekly to see how they were and what challenges they face.
“It’s scared a lot of drivers,” Cody Ruberto, founder and CEO of Uride, said in an email.
“Gas is not the only challenge facing drivers. Some drivers have been waiting for car parts for many months due to a shortage of supplies. “
2:00 UberEats Drivers of Montreal Feel the Pinch at the Bomb UberEats Drivers of Montreal Feel the Pinch at the Bomb – March 10, 2022
An increasing number of drivers turn to car-sharing to reduce their petrol costs.
Poparide, which provides city-to-city car-sharing service in Canada, has experienced an 80% increase in the number of registered drivers on its platform since March 1, 2022, the company told Global News.
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“Over the long weekend in May, we saw record year-on-year growth of 800% as gas prices and inflation hit new highs,” Joe Kitos, Poparide’s vice president of marketing, said in a statement. by email.
Although the company has not introduced a fuel surcharge, it has adjusted its maximum price from 15 cents per km to 17 cents per km.
“In addition, drivers have the flexibility to set the price for each trip, as long as they don’t exceed the maximum price on our platform,” Kitos said.
How can drivers be supported?
In an email response to Global News, Uber said the recent rise in gasoline prices has affected more than most car-sharing and delivery drivers.
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However, earnings right now are among the highest the company has ever seen for drivers across the country, according to Uber.
Read more: Uber, a union agreement in the case of unionization in Ontario: UFCW Canada
In Canada, as in the United States, Uber drivers are considered independent, self-employed contractors.
In contrast, British Uber drivers are classified as workers, entitled to a minimum wage, holiday pay and a pension plan. The change was introduced in March 2021 following a Supreme Court ruling.
Ming Hu, a professor of business operations and analytics at Rotman School of Management at the University of Toronto, says that in order to better support long-term Uber drivers in Canada, there should be similar legislation requiring that the platform classifies them as employees.
“In this case, drivers are protected from any fluctuations in the price of gas and the company will absorb this volatility,” he told Global News.
1:39 Accessible taxi industry calls for more funding to cover rising gas prices Accessible taxi industry calls for more funding to cover rising gas prices – April 20, 2022
As things stand, Canadian drivers of Uber and Lyft may have the flexibility to work their own hours, but their earnings depend heavily on the rates set by transportation companies.
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“We have no control over the rates they pay us and we don’t have the capacity to negotiate those rates,” Phillips said.
He said a tariff hike while the industry was feeling the effects of the rising gas price would only be fair to “hurting” drivers.
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Uber says it’s always looking …