Due to Soaring Fuel Prices... FedEx, Uber, and Other Transporters Say "Let's Share the Cost Burden"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As energy prices surge due to Russia's airstrikes on Ukraine, global logistics companies like FedEx and ride-sharing companies such as Uber and Lyft are demanding that their carriers receive subsidies from the companies or that cost pass-throughs be limited.

According to the Wall Street Journal (WSJ) on the 10th (local time), the average price per gallon of gasoline and diesel in the U.S. last month was $4.22 and $5.11 respectively, marking a 20% and 27% increase compared to the previous month. As fuel prices rise, drivers are facing increased financial burdens.

WSJ reported that freight carriers contracted with FedEx Ground, a subsidiary responsible for FedEx's domestic ground transportation business, are demanding subsidies. FedEx outsources transportation services within the U.S. to over 5,000 small business owners, but these carriers are required to cover costs from FedEx warehouses to delivery destinations themselves.

The contracted carriers are requesting temporary subsidies or additional compensation from FedEx through an online petition. They claim, "Most carriers are on the brink of financial collapse," and emphasize that "immediate action is necessary to save this business and its partners due to the severity of the situation."

Uber and Lyft also introduced temporary fuel surcharges last month, passing some of the costs onto riders. Depending on the region, riders pay between 45 to 55 cents per trip. In New York City, a group of ride-share drivers announced plans to submit a petition to Uber and Lyft requesting that fuel cost surcharges be capped at 10% of the fare, WSJ reported.

This content was produced with the assistance of AI translation services.