Rising gas prices impact everyone’s wallets, but they can also affect the bottom line for taxi cabs, ride-share services, and food delivery.
Skyrocketing gas prices impact the cost of other commodities and ultimately translate to higher business costs, according to Clint English, manager of Taxi Time, which provides taxi and limo services in the Killeen area.
“With gas prices being so high, we have to tighten down on a lot more,” English said.
English said the increased gas prices are causing private taxi and limo services to increase their prices to stay profitable.
“A lot of the limo companies like Nationwide Limousine Service, are going up about 10 percent nationwide because of gas prices,” he said.
Because city officials set the fares for city taxi services, ET Turner, a manager at Longhorn Taxi in Killeen, said the higher cost does not directly impact his customers. Still, over time, increased gas prices will affect his company’s profitability.
“It’s not that big of a difference,” Turner said, although he noted that gas prices had exceeded $4 per gallon for a short while.
“But the cost of gas is already starting to go down,” he added.
Ride-share companies have had a larger impact on Longhorn Taxi, Turner said.
“We’ve had a big, big drop in business because of Uber and Lyft,” Turner said. “Since probably about two years ago — maybe a little longer than that: three, to three-and-a-half years back.”
Turner said the COVID-19 pandemic also negatively impacted his business.
Considering gas price increases, the ride-share service Lyft is adding a 55-cent fuel surcharge to riders, which will go directly to its drivers to help offset fuel costs, according to a Lyft spokesperson. This surcharge will be applied to all rides, regardless of whether the vehicle runs on gasoline or electricity.
With the minimum earnings standard raise for drivers of 5.3 percent in New York City, riders in that area will be exempt from the surcharge.
Additionally, the spokesperson said that drivers could get an increased 4-to-5 percent cash back on gas with a Lyft Direct debit card through June 30.
GrubHub remains committed to offering competitive rates for its drivers, according to Jenna DeMarco, senior associate of corporate communications for Grubhub. In addition, the company continues adjusting on a market-by-market basis to ensure it has enough drivers to meet the demand of local diners, she said.
In addition to increasing driver pay, DeMarco said the company continues monitoring the ongoing fluctuations in gas prices. She said those gas prices could factor into the rates diners are charged.
“We also have partnerships with GasBuddy and Car Advise that give our drivers access to discounts on gas and car maintenance,” DeMarco said. “We periodically adjust our diner fees, which scale based on a number of factors including distance from the restaurant to the diner.”
DeMarco shared a statement released to Grub Hub drivers informing them of four ways the company is relieving driving costs with increased gas rates.
Grub Hub increased per-mile distance pay for all delivery partners, offers extra earning opportunities to boost pay, offers at least 25 cents off per gallon through a partnership with GasBuddy, and offers additional pay based on the estimated total miles the driver clocks per week.
A Door Dash spokesperson said the company had introduced a gas rewards program to offset elevated gas prices, preserving the earning potential for its drivers.
“Our weekly gas bonus for those who dash most, and 10 percent cash back with Dasher Direct at any station could lead to savings anywhere between $1.65 and $2 per gallon,” the spokesperson said. “We’ll continue to monitor the evolving situation and explore additional resources in the coming weeks and months.”
Additionally, the company provides prepaid business Visa debit cards for drivers to get 10 percent cash back on gas purchases, even when they’re not actively driving for Door Dash.
The company is also offering a weekly $5 bonus to all drivers who achieve 100 miles, which increases based on how many miles they drive, up to $30 for 225 miles in a week.
While the futures of both programs depend on the ongoing monitoring of gas prices, both promotions are currently set to run through April.