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Business

Amazon is adding a 5% fuel and inflation surcharge

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The e-commerce giant said the new fee will begin April 28 and is being imposed because inflation has worsened significantly in recent months.

“In 2022, we expected a return to normalcy as Covid-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” Amazon wrote in memo that was provided to CNN by the company. “It is unclear if these inflationary costs will go up or down, or for how long they will persist.”

Amazon spokesman Patrick Graham told CNN that the fee surcharge applies only to fee rates paid by sellers that choose to use Amazon’s fulfillment services, which include storing, packing and shipping products. Others sellers that do not use Fulfillment by Amazon will not be impacted. News of the surcharge was first previously reported by Bloomberg News.
The fee hike is the latest example of how businesses are reacting to spiking energy and other costs. Uber and Lyft recently began tacking on temporary fuel surcharges to rides and airlines have been raising airfare.

Amazon’s fee hikes on sellers could translate to higher costs to consumers as businesses seek to pass along rising expenses to their customers.

Suppliers sharply raised prices by 11.2% in March, the most on records that go back to 2010, the Bureau of Labor Statistics said Wednesday. Consumer prices spiked by 8.5% year-over-year in March, the biggest jump since 1981.

Amazon said in its memo that the company has attempted to minimize the impact of inflation.

“Like many, we have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners,” Amazon said. “When we did increase fees, we were focused on addressing permanent costs and ensuring our fees were competitive with those charged by other service providers.”

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Business

Amazon slaps U.S. sellers with 5% fuel and inflation surcharge

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Peter Endig | AFP | Getty Images

Amazon said Wednesday it plans to add a fuel and inflation surcharge of roughly 5% to existing fees it collects from U.S. third-party sellers who use the company’s fulfillment services.

The fee will go into effect in about two weeks, and is “subject to change,” the company said in a notice to sellers that was viewed by CNBC.

“The surcharge will apply to all product types, such as non-apparel, apparel, dangerous goods, and Small and Light items,” the notice stated. “The surcharge will apply to all units shipped from fulfillment centers starting April 28.”

With inflation soaring and oil prices on the rise, Amazon is trying to offset some of its own costs by passing fees along to sellers

Amazon already collects fees from sellers who use Fulfillment by Amazon, or FBA. Merchants pay to have their inventory stored in Amazon’s warehouses and to make use of the company’s supply chain and shipping operations.

Some 89% of Amazon’s 2 million-plus sellers used FBA in 2021, according to a report from Jungle Scout, which creates product research software for Amazon sellers.

“In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” an Amazon spokesperson said in an email to CNBC. “It is still unclear if these inflationary costs will go up or down, or for how long they will persist, so rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time—a mechanism broadly used across supply chain providers.”

Amazon said its fuel and inflation surcharge is 24 cents per unit, below the UPS fuel surcharge of 42 cents and FedEx’s fee of 49 cents, as of March 21, 2022.

WATCH: How Amazon plans to fix its multi-billion dollar returns problem

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Business

Uber to charge riders fuel fee amid rising gas prices

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Uber announced on Friday it will charge riders a fuel fee amid rising gas prices in the country. 

Customers will pay a surcharge of either $0.45 or $0.55 for Uber rides and a surcharge of either $0.35 or $0.45 for Uber Eats orders starting Wednesday. The full amount will go straight to drivers.

Uber said the will be in place for at least 60 days, at which point Uber will reassess the situation. 

“Many people are feeling the sting of record-high prices at the pump—and that’s certainly true of drivers and couriers. While earnings on our platform remain elevated compared to historical trends, the recent spike in gas prices has affected rideshare and delivery drivers,” Uber said in its statement.

“To help reduce the burden, we are rolling out a temporary fuel surcharge,” the company added. 

Gas prices have surpassed the previous record set in 2008 of $4.10 per gallon, rising to $4.33 per gallon on average on Friday.

The company also said it is working to get more of its drivers to switch to electric cars by offering more benefits through the its Green Future Program. Drivers in the program can earn $1 more per trip and up to $4,000 annually.



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Business

Uber is rolling out a fuel surcharge

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The ride-sharing service announced Friday it’s rolling out a fuel surcharge to help its drivers offset the burden of higher gas prices for at least the next two months.

Starting Wednesday, users will pay an extra $0.45 or $0.55 per trip and an additional $0.35 or $0.45 for Uber Eats, depending on the location. Uber said all the money from the surcharges will go to the drivers.

“We know that prices have been going up across the economy, so we’ve done our best to help drivers and couriers without placing too much additional burden on consumers,” Liza Winship, head of driver operations for the US and Canada, said in an online post.

The price surcharge will be in place for at least 60 days, Uber said, and the company will continue monitoring gas prices and consumer and driver sentiment. Uber noted the surcharge isn’t meant to cover the entire cost of gas, but rather to “soften the burden.”

The surcharge is national but it has one exception. In March, its drivers in New York City received a 5.3% pay increase under the city’s driver minimum wage law, the first of its kind in the US. It went into effect in 2019.

“This raise helps keep the city’s promise to keep app drivers out of poverty wages and on the path to a dignified and secure living,” said Bhairavi Desai, executive director of the New York Taxi Workers Alliance in a statement. “We all know the price of basic needs, like bread and milk, have gone up, and, for drivers, so have operating costs, like fuel and repairs.”

Uber reaffirmed its commitment to electric vehicles, saying it’s the best way to avoid skyrocketing gas prices in the long term. The company gives incentives of up $1 per trip up $4,000 annually to EV drivers and it has partnered with Hertz to make as many as 50,000 fully electric Teslas available for eligible drivers to rent by 2023.

“We are seizing this moment to bolster our efforts to help more drivers make the switch to electric vehicles,” Winship said.

The national average price for gas was $4.326 on Saturday, according to AAA. Gas prices broke a record this week, beating the previous record of $4.11 a gallon set in July 2008.

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Business

Uber will add a temporary surcharge for rides and food deliveries due to the rising cost of gas

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As the price of gasoline continues to surge to record highs across the country, Uber announced Friday that it is adding a fuel surcharge to rides and food-delivery orders. 

Depending on location, a fee of 45 cents or 55 cents will be added per trip for rides, and 35 cents or 45 cents for Uber Eats food delivery orders for the next 60 days beginning on March 16, Liza Winship, head of driver operations for U.S. and Canada, said in a press release. 

Winship added that the surcharge will depend on location and trip length, with “100% of that money going directly to workers’ pockets.”


“Our hope is that this temporary measure will help ease the burden, but we’ll continue to listen to feedback and may make changes in the future.” She said the ride-hailing company will reassess the need for the surcharge after 60 days.

As of Friday, the average price for a gallon of gasoline in the United States was $4.33, up 53% from a year prior, according to AAA. The average price per gallon reached a nationwide high of $5.72 in California on Friday, compared to $3.78 a year ago, AAA data shows.

During his annual State of the State address on Tuesday, Gov. Gavin Newsom announced that he will propose legislation to provide Californians relief from rising gas prices.

Newsom previously proposed suspending a gas tax increase scheduled for July. On Tuesday night, Newsom said, “it’s clear we have to go farther” than that.

“That’s why, working with legislative leadership, I’ll be submitting a proposal to put money back in the pockets of Californians to address rising gas prices,” he said.

Newsom has since provided no further details on his proposal to offset the rising price of gas.

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Business

Uber to roll out fuel surcharge in United States amid high gas prices

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Here are your FOX Business Flash top headlines for March 11.

Uber Technologies Inc said on Friday U.S. customers, excluding New York City, will have to pay a fuel surcharge from March 16 as the ride-hailing firm tries to address concerns of drivers and couriers hit by record high gasoline prices.

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Customers will have to pay a surcharge fee of either 45 cents or 55 cents on each Uber trip and 35 cents or 45 cents on each Uber Eats order, depending on their location. The money charged will go directly to the workers, Uber said.

Uber Technologies Inc displayed on a mobile phone. REUTERS/Toby Melville/Illustration/File Photo

The surcharge will last for at least 60 days after which it will make adjustments based on feedback from workers and customers.

The move comes as many Uber drivers have been protesting on social media over high gas costs that have been eating into their earnings even as the company raised its profitability outlook, with some asking if it was still worth getting behind the wheel. 

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Western sanctions following the invasion of Ukraine by Russia, a major oil producer, had crippled global oil trade and could further lift gasoline prices.

(Reporting by Chavi Mehta in Bengaluru and Tina Bellon in Austin, Texas; Editing by Arun Koyyur)

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Business

Delta Airlines new health insurance surcharge boosts employee COVID-19 vaccine rates

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Thousands of Delta Airlines employees have gotten inoculated against COVID-19 in the two weeks since the company announced a monthly $200 health insurance surcharge for the unvaccinated, according to a report.

Last month, Delta CEO Ed Bastian said employees not fully vaccinated against coronavirus by Nov. 1 would have to pay the extra dough.

At that time, there were about 20,000 Delta workers without the jab, according to the company’s chief health officer, Dr. Henry Ting, who spoke this week at the Infectious Diseases Society of America, WGN9 Chicago reported.

“Just within the two weeks of the announcement, we’ve seen nearly 20 percent, or one-fifth, of that 20,000 decide to get the vaccine,” Ting told the IDS, calling the increase of about 4,000 a “huge number.”

The company also said it would hire only fully vaccinated flight attendants.

Since the health insurance surcharge announcement, 20 percent of the 20,000 reported unvaccinated have now been inoculated against COVID.
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