Here's a simple economic story: when the price of something goes up, people who don't have to buy that thing get a relative advantage. Right now, that thing is gasoline, and the people with the advantage are electric vehicle drivers working for Uber Technologies Inc. (UBER) and Lyft Inc. (LYFT).
A recent report highlights how EV drivers on these platforms are seeing their earnings grow as gas prices surge, while drivers of internal combustion engine (ICE) vehicles are having to be more selective—prioritizing only the most profitable trips, sometimes even if it means driving to less safe areas.
One driver in North Carolina, who uses his Tesla Inc. (TSLA) Model Y for both Uber and Lyft and charges it at home, put it plainly: "I'm not happy that gas prices are going up, but I'm happy that it's not affecting me." He added that he hadn't "been in a gas station in forever" and loves being an EV owner.
On the flip side, ICE drivers in the report expressed clear concern. One noted that despite the increase in their running costs, the fares from the platforms haven't gone up to compensate. "Uber and Lyft were 'not paying us more' to make up for the difference," the driver said, though adding that such a move would help cushion the blow.
The numbers explain the stress. According to AAA data, the national average price for regular unleaded gasoline was $3.539 per gallon, with California hitting a painful $5.290 per gallon. Oil prices themselves neared $120 a barrel as tensions escalated in the Middle East.
Meanwhile, Transportation Secretary Sean Duffy has been defending the administration's energy record. He pointed to the Energy Dominance initiative, which he said resulted in gas prices below $3 a gallon. Duffy also addressed the geopolitical root of the current spike, questioning the "power of Iran" and its "leverage" over a "fifth of the oil" moving through the Strait of Hormuz—a crucial chokepoint for global crude. He called it "appropriate" to address that leverage.
Oil markets have been on a rollercoaster. Prices recently pulled back slightly after U.S. Energy chief Chris Wright posted on social media that a ship was successfully escorted by the U.S. Navy through the Strait of Hormuz. The post was later deleted, but it was enough to move the needle in a jittery market.
So, for now, if you're driving for a ride-share service, what you're driving matters more than ever. The guys with the plugs in their cars are getting a quiet pay bump. The guys at the pump are doing the math on every trip.
