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Surging Gas Prices Strain Gig Workers: Many Forced to Cut Back or Quit Ride-Hailing Jobs

As gas prices soar, gig workers for ride-hailing and delivery services like Uber, Lyft, and DoorDash are feeling the financial strain, prompting some to cut back on driving or even quit altogether. Adam Potash, a Lyft driver in San Francisco, was content with his earnings six months ago, making about $200 a day before expenses. However, rising gas prices have forced him to reduce his driving hours from 45 to 20 per week to offset costs.


Gig workers, classified as independent contractors, bear the brunt of fuel expenses without reimbursement from the companies they work for. The national average for a gallon of gas hit a record $4.33, with California experiencing an average of $5.77 per gallon. The surge in gas prices has become a breaking point for some drivers, exacerbating the already challenging financial equation.


A survey by Harry Campbell, known as the Rideshare Guy, revealed that 38% of drivers are reducing their driving due to high gas prices, and 15% have quit driving altogether. Some drivers organized a boycott of ride-hailing apps, highlighting their concerns about safety and the impact of gas prices on their livelihoods.


Uber and Lyft claim that overall driver numbers are not down, with Uber stating it has more active drivers than in January. Both companies have introduced small fees on ride prices for the next two months to help compensate drivers. DoorDash has launched a gas rewards program, and Grubhub has increased driver pay.


However, some drivers argue that these measures are insufficient to cover the escalating gas costs, which have risen by 49% in the past year. Critics point out that the gas fees introduced by Uber and Lyft, ranging from 35 to 55 cents per trip, may not adequately address the financial burden on drivers.


Jennifer Montgomery, an UberEats driver in Las Vegas, expressed dissatisfaction with the gas fee, stating it "doesn't even put a dent" in the increased fuel cost. The frustration is shared by other drivers, like Mr. Jean, who is reevaluating the profitability of ride-hailing work amid escalating expenses.


The impact of rising gas prices on gig workers underscores the financial vulnerability of independent contractors who depend on driving for their income. Some drivers are contemplating leaving the ride-hailing business altogether, raising concerns about the long-term sustainability of gig work in the face of economic challenges.

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