'Almost not viable': As petrol prices spike, rideshare drivers are feeling the pinch

Rideshare drivers are concerned they may be squeezed out of the industry due to the rising cost of petrol.

A woman is seen sitting in her car.

Rosalina Pirozzi, who has worked in the rideshare industry for more than six years, is concerned the petrol price hike is adding more stress to drivers who are already struggling. Credit: Supplied

When Rosalina Pirozzi joined the rideshare industry six-and-a-half years ago, she could afford to pay for her and her family’s expenses as a full-time Uber driver.

Three years later, in 2018, she knew she could no longer make a living from rideshare driving alone and so she started a private transport business to make up the losses.

Now, with the rising price of petrol, the Ride Share Drivers Across Australia (RSDAA) president said she can barely imagine how people working as drivers in the gig economy are able to support themselves or their families.
Private driver and uber driver Rosalina Pirozzi posing on the side of a windy highway on a road trip
Rosalina Pirozzi started a private transport company. Credit: Supplied
“When I first started Uber, the earnings were about double what they are now. However, pay rates haven’t changed since I began driving,” Ms Pirozzi said.

Ms Pirozzi said although the rate varies from state to state, in NSW, Uber drivers have earned $1.45 per kilometre since 2016. In a report by the Australia Institute in 2018, the rate stayed consistent and in a trip from this March this year, Ms Pirozzi showed the rate remained the same.

“The increase in fuel price makes every rideshare driver question whether it’s feasible to drive, especially for those who lease their vehicle.”

The Sydney-based driver told SBS News the rising costs of car maintenance and expenses such as the rideshare company's commission (more than 25 per cent), car lease or insurance, GST and high fuel costs mean drivers aren't left with a lot at the end.

"Drivers would be lucky to make a 10 per cent profit now, that’s how bad it is.

"When I first started driving, it would have cost me around $75 to fill up the tank — now it costs me $135.

"I’m still being paid the same as six-and-a-half years ago but petrol’s going to keep going up — everything’s going to go up," she said.
Rideshare and private driver Les Johnson shared similar concerns to Ms Pirozzi and said rideshare drivers would have to be very smart operators or work excessively long hours to have even a marginal capacity to support themselves and their families.

“Whilst I find that what I earn satisfies my requirements, the dramatic increase in fuel costs has made the situation almost not viable,” Mr Johnson said.

"Twelve to 18 months ago, we were looking at around $1 per litre for fuel and now we’re looking at double that," the Brisbane-based driver said.

Mr Johnson said he would drive less for Uber and spend more time doing his own private driving where he can offer a more personalised service for a higher price.
Driver Les Johnson standing next to his car
Les Johnson has been driving an Uber for more than six years and has felt the pinch of the fuel hike.
“I think all the rideshare services are going to have to put the rates up if they want to keep drivers on board," he said.

“Unless they put the rates up or lower their commission, more and more drivers are going to find it extremely difficult to make ends meet."

Uber announced in a statement a temporary fuel surcharge paid by riders on all trips in Australia. This means "driver-partners" will receive about an extra 50 cents on an average trip.

Rideshare service Didi has also implemented a nationwide fuel surcharge of six cents per kilometre to take effect from 21 March.

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3 min read
Published 16 March 2022 4:12pm
By Monique Pueblos
Source: SBS News


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