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Relief for drivers as rideshare giants raise prices amid fuel supply concerns

Uber and DiDi are among the businesses increasing their fees in response to the fuel supply issues triggered by the war in the Middle East.

Passenger in the back seat of a car that has an Uber sign on it.

Delivery and rideshare workers have been offered support as concern mounts over surging fuel prices. Source: AAP / Erik S. Lesser/EPA

Passengers will bear the cost of surging fuel prices as rideshare giants raise fares to provide drivers short-term support.

Uber and DiDi are among the delivery and transport companies that have introduced additional charges amid growing concern about Australia's fuel supply due to the Middle East conflict.

Food delivery platform DoorDash has pledged support for its drivers and deliverers, providing workers with immediate relief.

Drivers who complete 100km or more in weekly deliveries will be eligible for cash support from Monday under a plan targeting those in rural and suburban areas who travel greater distances.

Rising fuel prices have a real impact on all Aussies, particularly those who are making deliveries across our communities," DoorDash vice president Simon Rossi told AAP.

"We want to back Dashers and provide immediate relief at the pump during this fuel crunch.

"It will help them keep delivering and earning, while saving families and individuals time."

The program will continue until 30 April.

Transport Workers Union national secretary Michael Kaine welcomed the move, saying delivery workers had been hit incredibly hard by rising fuel prices.

Concern about fuel supplies has been mounting after six oil shipments to Australia were cancelled or postponed due to the war.

Iran's decision to effectively close the Strait of Hormuz — a key global trade route — in response to US and Israeli strikes has sent global oil prices skyrocketing.

Domestic petrol and diesel prices have soared, but the government has repeatedly said shortages in some regional and rural areas were caused by panic-buying rather than supply issues.

Uber surchage will not be temporary

Rideshare app Uber will increase prices from next week, and the surcharge will not be temporary.

An Uber spokesperson told AAP it regularly reviewed fares to ensure it struck the right balance between drivers' earnings and affordable rides.

"From next week, we will be updating Uber fares which will increase driver earnings by an average of six per cent across Australia," the spokesperson said.

"These changes build on work already under way and reflect our ongoing commitment to better supporting driver earnings over time."

Rival DiDi has added a five-cent-per-kilometre surcharge to help cover fuel costs for drivers.

"To help offset these increasing operating costs, DiDi will increase the temporary fuel surcharge applied to every DiDi trip nationwide," head of external affairs Dan Jordan said.

"This adjustment is designed to provide additional support to drivers while fuel prices remain elevated."

Jordan told AAP the rideshare provider would continue to review its pricing structure and service fees.

DiDi and Uber have existing partnership programs for their drivers.


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3 min read

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Source: AAP



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