Rideshare companies in B.C. charge gas tax on electric vehicle rides

Uber and Lyft customers are accusing the rideshare companies of pinching nickels and dimes amid surging gas prices in B.C.

As gas prices began surging to unprecedented heights in February, rideshare and taxi companies were forced to increase prices to make up for the gap in cost per ride. However, some rideshare users were shocked to find the 50-cent tax added to compensate for gas prices also applied to electric and non-motorized vehicles.

In mid-March, Uber said in a statement, “Riders will pay a $0.50 surcharge on every ride and. on Uber Eats where trips are shorter, consumer fees will be adjusted to cover the equivalent of a $0.35 surcharge on every delivery. 100% of surcharges will go directly to drivers and delivery people.”

Received tips from ppl saying they were charged Uber gas surcharge even though their ride was electric and their food order came on a bike. Has this happened to you? Send screenshots. @CityNewsVAN

— Katarina Szulc (@KatarinaSzulc) March 29, 2022

The surcharge was implemented on March 16, and is meant to last for 60 days.

However, recently, riders and Uber Eats users have noticed the surcharge on rides and orders delivered by electric vehicles and bikes. Phil Reid, an Uber user, submitted screenshots of his receipt of a ride in a Tesla, where Reid was charged the 50-cent tax, despite the vehicle not using gas.

In a statement to CityNews, an Uber spokesperson said, “We don’t know until after a customer places an order what type of mode will be used for the delivery (i.e., a delivery person is matched after you place the order so that they can arrive just as your food has been prepared). In order to ensure we could get this fuel surcharge out quickly, we included all modes. We also didn’t want to penalize earners who chose greener methods of transportation.” 

However, Phil Reid, who frequently uses Uber says “this is gouging at its finest.”

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Similarly, Lyft has applied the same logic.

“Our long term commitment to electric means that, in addition to lower fuel and maintenance costs, we want drivers with EVs to have the same earning opportunities with Lyft,” the company wrote in a statement.

Reid told CityNews, his Uber Eats orders that were delivered on bikes also fell subject to the tax, which Uber says is due to the inability to know the mode of transportation until after the order is placed.

Uber’s website pushes drivers to go electric stating, “Drivers who go electric can already enjoy higher earnings potential due to Uber’s Green Future Program, which provides incentives to EV drivers such as $1 more per trip.” Meaning, EV Uber drivers have had the potential to make more profit prior to the gas surcharge.

As gas prices remain steadily high in the province, it is unclear if the surcharge will be extended or expire on the intended 60-day mark.