“Cheaper to buy a tent”: Eastern Melbourne’s rideshare drivers feeling the pinch of rising fuel

John*, a 27-year-old man who drives full-time for Uber, says the job is taking a toll on his mental health as he lives pay cheque to pay cheque amid falling demand, rising fuel costs and high commission fees.

❓ What’s happened? The limited supply and rising demand of fuel due to the Middle East conflict has pushed petrol and diesel prices to above the $2 a litre mark for weeks now. 

A painful additional cost for many to bear as the cost of living increases, the price hike has been particularly felt by those who rely on their vehicles for work. 

• In an attempt to address the issue, the Australian Government announced in March it would halve the fuel excise on petrol and diesel from April 1 to June 30 – meaning fuel would be 26.3 cents per litre cheaper.

• The changes are finally starting to be seen at the bowser, with unleaded in Melbourne’s east at about $1.85 per litre and diesel around $2.80.

📈 Rapid drop-off: John said he had turned to driving for Uber full-time late last year due to health issues and the flexibility of rideshare work.

• However, he said his earnings quickly declined due to the expenses of renting a car for $400 a week and spending up to $150 on fuel.

• 🗣️ “I’d be lucky to make $50 to $75 a shift, sometimes working for as little as $5 an hour,” he said.

⌚ Slow days: In one earning report seen by the Eastern Melburnian, out of 21 hours of waiting for trips on the app, John was only actively working for about eight hours, earning around $15 an hour – $10 below the current minimum wage.

• 🗣️ “This has had a dramatic impact on my mental health,” said John. “Living pay cheque to pay cheque isn’t what I had hoped for. At this rate, it would be cheaper to return the vehicle, buy a tent and live among the homeless population of Melbourne.”

🪙 Uber’s response: On April 13, Uber and the Transport Workers Union made a joint announcement that Uber customers would pay an extra five cents per kilometre (excluding electric vehicles) from April 15 to June 8.

• According to Uber Australia managing director, Emma Foley, the fuel surcharge aimed to  “provide driver partners temporary relief in response to the current fuel crisis”, with all earnings from the surcharge going directly to drivers.

👝 Unfair takings: However, John said this had done little to offset Uber’s 27.5 percent commission, calling for the company to consider reducing its commission to 15 or 10 percent to improve service delivery.

• 🗣️ “The better condition the drivers and vehicle is kept in, the safer it will be for passengers to get to their destination – without drivers being over-worked, overcharged and overtaxed,” said John.

*Name changed

Thumbnail Image Credit: Erik Mclean