DiDi raises prices in Australia to cover soaring petrol costs amid conflict in the Middle East

0
3

Rideshare giant DiDi has raised its prices to cover soaring petrol costs, becoming one of the first major companies after the airlines to charge Australian consumers more as a result of the conflict in the Middle East.

Uber, DoorDash and Australia Post were among the delivery and transport companies weighing whether to add charges, as small businesses hike fees.

DiDi customers across Australia from Wednesday started paying an extra 5c per kilometre, which the company said would be passed on in full to drivers.

The surcharge would cover the nearly 50c a litre rise in petrol prices since the US went to war on Iran, assuming a fuel economy of 10 litres per 100km for the typical trip.

DiDi trips in electric vehicles will also be subject to the surcharge, though their drivers are not incurring petrol costs. DiDi had introduced a fuel surcharge before, of 3c per kilometre back in 2022, when the pause on the fuel excise was lifted, DiDi Australia’s head of external affairs, Dan Jordan, said.

“We recognise the ongoing pressure that rising fuel prices are placing on our drivers across Australia, with higher costs at the pump directly affecting their ability to earn on the platform,” Jordan said.

Sign up for the Breaking News Australia email

Uber was yet to announce a surcharge, leaving Uber and Uber Eats delivery drivers out of pocket for higher fuel costs. An Uber spokesperson said the company recognised the costs on workers.

“Uber is actively monitoring conditions as they evolve and regularly reviews ways to support driver partners and delivery people,” the spokesperson said.

“We are always looking for ways we can continue to support them.”

Food delivery platform DoorDash was expected to soon announce support for its drivers and deliverers, with a spokesperson saying the company was “actively working through options”.

Australia Post will release its fixed petrol surcharge for May in coming days, affecting online shoppers and e-commerce businesses.

April’s surcharge was set at 4.8%, the lowest level since May 2022, two weeks before war broke out. While Australia Post declined to share how high the new surcharge would be, the oil and petrol price spike of 2022 pushed the surcharge to 12% on transactions.

“This is a very fluid situation that we are carefully assessing and monitoring, and we will continue to keep our customers updated,” a spokesperson said.

Woolworths declined to comment on whether prices for its grocery deliveries or Milkrun service would rise. The company has not reported any disruptions to deliveries or pricing.

Small businesses are also exposed, with removalists, cleaners and water taxis among those taking to social media to explain their new higher prices to customers.

Major airlines, including Qantas, have hiked charges for customers as jet fuel costs surge. Cathay Pacific on Wednesday doubled its surcharge, with flights booked in Australia now incurring a charge of US$149.20 (A$209.77).

Businesses have been warned they could face legal action if they make false or misleading statements on why they are hiking prices. The Australian Competition and Consumer Commission last week said it was monitoring the aviation industry especially closely.

The Reserve Bank raised interest rates on Tuesday with the aim of cutting Australians’ spending to prevent businesses from baking in the temporary rise in petrol prices.

“If we don’t bring the excess demand down, then businesses are just going to build that into their costs, so it’s going to be even worse for everyone,” the RBA governor, Michele Bullock, said.

Some companies are taking the hit to their bottom line. Coles has made no changes to its grocery delivery prices or fuel charges, with a spokesperson saying the supermarket giant was operating “business-as-usual”.

Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: theguardian.com