Gig workers feel the pinch as gas prices rise

For more than a decade, Alvaro Boraines has been a rideshare driver, transporting passengers around Los Angeles in his SUV. He’s never seen anything like what happened with Gus this month.

“It’s changing very quickly,” Boraines told CNBC. “That’s insane.”

In Boraines’ eyes, prices have skyrocketed “overnight” in the wake of the U.S. and Israeli attack on Iran. Boraines has tried to avoid short rides to ensure he makes a profit as a result. In a Facebook group, he shares tips from his years of driving for a living to help others navigate this change.

Boraines joins a network of millions of Americans who provide delivery, ride-hailing and other services as a source of income. These gig economy jobs typically require cars, so workers are feeling the effects of soaring oil prices keenly.

“We have no choice,” Boraines said. “If I don’t drive, I won’t be able to afford to pay my rent or bills.”

The average price of unleaded gasoline rose 22% from last month to about $3.59 a gallon on Thursday, according to AAA. The national average is at the highest level since May 2024.

Prices last week posted the biggest three-day increase since Hurricane Katrina hit New Orleans more than 20 years ago, according to Bespoke Investment Group. This month, gas prices experienced their steepest 10-day rise on record, according to Kevin Gordon of the Schwab Center for Financial Research.

“For some gig workers, higher gas prices are not only immediately painful, but may also add some fear to their daily lives,” said Elizabeth Renter, senior economist at financial education platform NerdWallet.

Boraines is not alone in the gig economy’s struggle to adapt to rising costs.

Adrian Mussio, food delivery driver on platforms such as door dash and Uber Eats similarly does the mental math to get the most out of his travels. She reminded her friend that tips become more important as pump prices go up. The Pennsylvania resident started looking for gig jobs online to help make ends meet if costs rise in the long run.

At the same time, I try to walk instead of using my car for personal errands such as going to the convenience store. When Mussio fills up his tank these days, he scours apps like Gasbuddy to find the best price and, if possible, cashes in his grocery store loyalty points for oil credits.

“I think it’s going to stay like this for a while,” Muscio said. “We have to adjust.”

GasBuddy’s daily active users more than doubled in about a week and a half, said Patrick de Haan, the company’s head of petroleum analysis. Users spent more than 30% more time in the app during this period, a sign that users were thinking more about price, DeHaan said.

There is reason to think relief may not come soon. crude oil The situation remains unstable amid the outbreak of war between the United States and Iran. On the other hand, the busy spring break travel period and the switch to more expensive summer blend oils usually drive prices up. GasBuddy’s De Haan told CNBC on Wednesday that there’s about a 55% chance the average gallon price will reach $4.

If prices don’t fall soon, some gig workers are planning to implement, or hope their own contracting companies will implement, significant policy changes.

Boraines, vice president of the advocacy group Rideshare Drivers United, said he would like to see platforms introduce additional gas surcharges. Several companies introduced this type of policy in the aftermath of Russia’s 2022 invasion of Ukraine, which sent gasoline prices soaring to record highs of more than $5 a gallon.

A DoorDash spokesperson told CNBC that the food delivery platform offers a series of discounts for drivers. Uber, lift, instacart GrubHub also did not respond to CNBC’s inquiries about driver resources or potential policy changes.

Ashley Manka spends up to two hours behind the wheel each day working as a one-man laundry machine that washes and folds laundry. The 33-year-old Texan is considering adding a $5 fee to long-distance pickups and drop-offs to alleviate rising gas prices.

“Everyone wants to keep costs low,” Manka said. “It’s just really frustrating when it’s outside of your control.”

Estimates of the size of the app-based gig workforce vary, but the most reliable research projects find between 2% and 4% of the U.S. population in such roles, according to Goldman Sachs. The bank said the platform-based workforce is estimated to have grown by 5% to 8% annually in recent years.

Temporary workers and independent contractors earn lower monthly wages than traditional employees, in part because they work fewer hours on average, according to 2024 data from ADP. A 2021 study from the Pew Research Center found that gig platform workers are more likely to be people of color, low-income, and under 30.

For these Americans, the current price is the latest challenge after a difficult past few years.

NerdWallet’s Renter says auto insurance prices and the labor costs associated with repairs have skyrocketed since the pandemic. Auto parts could also become more expensive due to President Donald Trump’s tariff policies on many imported goods, she said.

Given today’s relatively tight labor market compared to the 2022 gas crisis, gig drivers are likely to find it more difficult to find other employment opportunities.

What’s more, Lindsey Cameron, an assistant professor of business administration at the University of Pennsylvania, said drivers who use apps for work can’t individually raise their rates like other contractors if costs rise.

“This kind of work is very precarious,” said Cameron, who studies the gig economy. Rising gas prices are “exacerbating the instability” of drivers.

Owner-operator freight distributor Shannon Hillock sees the challenges truckers are facing with oil as a harbinger of things to come for the country as a whole.

Based in South Dakota, Hillock helps negotiate jobs with independent truck drivers and companies. But she said the calculus has changed dramatically for these drivers. Diesel prices soared more than 35% in 2026, outpacing the 26% rise in unleaded gas over the same period, according to a CNBC analysis of AAA data.

“High fuel prices are one of the most harmful parts of this equation,” said Hillock, who is a family member of several truck drivers. “Your profits are just sucked away at the fuel pump.”

Hillock clearly sees the ripple effects. He said drivers were already operating on thin margins, but they needed to raise prices to account for rising fuel prices. GasBuddy’s De Haan says there’s a 70% chance diesel cars will reach $5 a gallon.

As a result, Hillock said, consumers should expect those costs to be passed on in the form of higher price tags in grocery and retail aisles.

“Truck drivers are bearing the brunt of it,” said Hillock, 39. “But it’s not something they bear alone. All Americans will feel this.”