In brief
The rise in gas prices, driven by the conflict in Iran, is putting financial strain on gig economy workers such as Uber drivers and delivery personnel. Leslie Sherman-Shafer, an Uber driver in California, reports significant increases in her fuel costs, relying on tips which have not kept pace. Other gig workers are also feeling the pinch and adjusting their strategies to cope. Companies and workers alike are facing challenges as they adapt to this new economic reality.
Leslie Sherman-Shafer, an Uber driver in the San Francisco Bay Area, likes to start each shift with a full tank of gas.
It used to cost her around $25 to fill up her Toyota Corolla. She’s now spending closer to $40 as the Iran war has pushed up gas prices across the U.S. by about a dollar. As Sherman-Shafer increases her hours to cover the difference, she notes, We don’t get reimbursed for gas. We rely on the generosity of the tip.”
While some passengers are tipping more generously due to the higher gas prices, many do not tip at all.
In the U.S., nearly 27% of civilian workers reported driving as a physical demand of their jobs, according to the U.S. Bureau of Labor Statistics. A multitude of professions, including ride-share drivers, electricians, nannies, home health care aides, and real estate agents, utilize personal vehicles, making fuel costs significant for their day-to-day operations.
As the war enters its fifth week, gas prices have risen to a national average of $3.99 per gallon, a 34% increase in just one month, according to AAA.
Despite some companies offering to compensate employees for gas mileage, many gig workers find themselves unprotected. For instance, companies like DoorDash and Uber have introduced temporary incentives for drivers but it may not be enough to ease the burden.
Sarah Noell, a DoorDash driver in Virginia, mentions that she now refuses orders that don’t meet her standards, as many customers have started declining to tip. With the fuel costs altering the landscape of how gig workers operate, the repercussions extend globally, as diesel prices have also surged significantly.
The worry is palpable as business owners and workers alike navigate this challenging financial environment. “With everything going up, it’s impossible to save a dime,” Sherman-Shafer remarked. Many hope the situation stabilizes before it takes a toll on their livelihoods.
