Gas prices have risen globally following military actions in the Middle East, affecting individuals like Kuljeet Singh, a ride-hail driver in Vancouver. Singh feels the financial strain each time he refuels, with costs increasing significantly. The surge in gas prices has impacted ride-hail drivers who spend long hours on the road, leading to concerns about burnout as making ends meet becomes more challenging.
The average gas price in Canada, as per Gasbuddy.com, was approximately 168.1 cents per liter. British Columbia experienced even higher prices, reaching an average of 187.3 cents per liter. For Singh, this translates to an extra $20 to $25 per fill-up, occurring every three to four days while driving for Uber and Lyft. This additional expense amounts to $150 to $200 monthly for him to navigate the roads in downtown Vancouver.
Experts emphasize that although Canada produces its own oil, the global oil market’s interconnected nature exposes the country to price fluctuations. Joe Calnan, the vice president of energy at the Canadian Global Affairs Institute, highlights how supply disruptions worldwide impact prices domestically. As the Middle East conflict persists and production remains hindered, gas prices are expected to continue rising.
The escalating costs pose significant challenges for ride-hail drivers like Earla Phillips in Ontario, who have been struggling to cover basic expenses even before the recent surge in gas prices. Phillips, a veteran driver for companies like Uber and Lyft, has witnessed many drivers facing difficulties with car payments and essential living expenses. Despite legislative efforts in Ontario and B.C. to protect gig workers, criticisms persist regarding the adequacy of these measures in ensuring fair compensation and safety.
To alleviate the financial strain, Phillips has become more selective in accepting trips to mitigate fuel expenses. She advocates for ride-hailing companies like Uber and Lyft to implement fuel surcharges for riders when gas prices exceed a certain threshold, sharing the burden with drivers. In the past, Uber introduced a fuel surcharge during times of elevated gas prices, acknowledging the impact on ride-share drivers.
As drivers contemplate alternative income sources due to the diminishing profitability of ride-hailing, companies like Hopp in the Greater Toronto Area are evaluating strategies to support drivers through cost pressures. The evolving landscape of the gig economy prompts drivers like Abdul Jaber to consider diversifying their sources of income to sustain their livelihoods amidst challenging market conditions.