Higher Gas Prices Cut Ride Share Driver Profits

Your ride sharing could cost more.

Rising fuel costs could become a summertime frustration for ride sharing -- with drivers and passengers both feeling the heat.

The price of gas is the highest since 2014. Drivers buy their own fuel, so their profit is reduced … and so is their interest, in some case, in starting or continuing to working for rideshare businesses like Uber and Lfyt.

Analysts say higher fuel costs aggravate the situation on all sides ... As drivers earn less, even as passengers possibly pay more.

It's tougher to meet workforce and rider demands.

With gas prices at their highest in four years, drivers for Uber and Lyft have to absorb more operational costs. That cuts into their income. It also raises the prospect of higher rates for passengers, or a temporary boost -- similar to the way surge rates apply during holidays and major events.

The need for drivers already means higher wait times, at times, for ridesharing.

Regulations, workforce and rider demands, and higher fuel costs have all been cited as factors that can aggravate the rideshare situation on all sides.


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