Gas Pump Crunch: How Skyrocketing Fuel Costs Are Forcing Uber and Lyft Drivers to Pick and Choose Rides

Bill Lewis fills his Prius six or seven times a week. Used to cost $22 a tank. Now it’s $31. Every gallon stings.

The former Wall Street trader turned full-time Uber and Lyft driver in Pennsylvania’s Poconos logs 75 hours weekly. Twenty-two to 28 rides a day, mostly within 25 miles. But high gas prices—spiked by the war in Iran—have him dodging long hauls to remote spots. Those trips once paid off. Not anymore. The return drive burns too much fuel with no guaranteed pickup. Business Insider captured his story on April 18.

And it’s not just Lewis. Across the U.S., gig drivers face the same math. National average gas hit $4-plus for the first time in four years. California leads the pain at nearly $6 a gallon, some Los Angeles stations topping $8. Pennsylvania fares better, but Lewis’s hybrid at 50 mpg barely keeps him afloat. Regular cars at 25-30 mpg? Forget profitability, he says.

Drivers adapt fast. Back roads over highways. Shorter routes. Decline lowball fares. John Mejia, part-time Uber and Lyft driver in San Francisco and California Gig Workers Union member, sees peers quitting. “Unfortunately, it’s the economics of paying less to drivers and gas prices,” Mejia told the Los Angeles Times on April 18. “It actually is pulling people out of the business.” He used to pocket $400 in three hours. Now? Twelve hours for $200.

Driver Strategies Shift Amid Fuel Squeeze

Margarita Penalosa drives full-time in Los Angeles since 2017. Eight hours once netted $300 when gas dipped under $3. Now, over $8 a gallon, she grinds 14 hours for $250. “Take out the gas. Take out the mileage from my car and maintenance. How much do I really make? Probably I get $11 for an hour,” she said to the Los Angeles Times. Penalosa added a seventh day weekly to cover her Toyota Corolla hybrid’s extra $15 fills, per The New York Times on April 4.

Sergio Avedian, Uber driver and contributor to The Rideshare Guy, pushes the “decline and recline” tactic. Reject unprofitable rides. Wait for better ones. “Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” he wrote, as quoted in the Los Angeles Times. For others, though, spikes turn side gigs into losses.

California counts over 800,000 gig rideshare drivers. Nationally, millions on Uber, Lyft, DoorDash, Instacart rely on wheels for income. Oil disruptions from Iran tensions—via the Strait of Hormuz—keep pumps hot. Economist Mark Zandi of Moody’s Analytics warns prices climb fast, fall slow. “There’s an old adage that prices rise like a rocket and fall like a feather,” he told the Los Angeles Times. Even if flows resume, relief lags.

Uber and Lyft feel the ripple. Fewer drivers mean longer waits, higher fares. Platforms stay mum on supply drops so far. But history repeats: In 2022, post-Ukraine invasion, they added $0.45-$0.55 passenger surcharges. Lewis hopes for that now—could add $80 weekly. No sign yet.

Instead, temporary perks. Uber’s March 25 announcement expands relief through May 26: Up to $1 off per gallon via Upside (tier-based), 21¢ off Shell Fuel Rewards, 15% cash back with Uber Pro Card. Top tiers stack to $1.44/gallon savings at $3.97 base. EV push too—286,000 monthly active zero-emission drivers, largest in ride-hail. Uber Newsroom.

Lyft mirrors: 60-day program, March 27-May 26. Extra 1-2% cash back via Lyft Direct debit (Elite/Gold/Platinum), 14¢/gallon Upside boost, $5 fill-up redemptions. Up to $0.98/gallon. “Drivers are feeling the cost of rising gas prices, which ultimately impacts their earnings,” said Yuko Yamazaki, Lyft VP Head of Driver. Lyft Blog.

Drivers scoff. Sergio Avedian calls Uber/Lyft perks “largely symbolic.” Require specific cards, stations. Mejia: “They’re offering us nothing.” Business Insider on March 27 details DoorDash ($5-15 weekly for 125+ miles), Instacart boosts too. Patchwork aid. Not surcharges.

Platforms’ Playbook: Incentives, EVs, and the Road Ahead

Geopolitics drives the spike. US-Israeli-Iran war disrupts oil. CNN noted millions affected on April 1. X buzz echoes: Drivers reject low-payers, per WHAS11 video shared April 13. WSJ reports gig workers tweak schedules, skip long rides, log extra hours—one’s weekly pay halved to $700 from $1,200.

What next? Driver exodus risks surge pricing. Platforms might reinstate surcharges—Australia got Uber’s already. Or accelerate EVs. Uber grants $4,000 for electrics nationwide amid the crunch. But hybrids like Lewis’s Prius hold the line for now. Non-hybrids? Drivers park cars.

California’s 39% premium over national $4.12 average amplifies pain. Slight dips to $5.73 helped, but volatility reigns. AOL on April 18.

Lewis eyes app surcharges. Riders would get it, he figures. Companies? Watch earnings calls. Gig supply strains test the model. Fuel costs expose the independent contractor grind. Dogs wait at home. Bills don’t.