Well, that was quick…just weeks ago the world was pondering if oil might reach US$100 per barrel. 💸 Today, oil prices are so high that even new baby daddy Elon Musk thinks we should start cranking up oil production. Drill baby, drill!
Filling up might feel like we are getting robbed at the pump, but what do rising prices mean for ride share companies Uber (UBER) and Lyft (LYFT)? 🏪 Well, not much. It’s the drivers putting the fuel in the tank who are feeling the pinch of higher costs - even those operating with more efficient hybrid cars. In the US, where Uber picks up around 70% of all riders, the company has announced they’ll add a surcharge on each ride that’ll go to drivers to ease the pressure.
Uber themselves has quickly bounced back from the peak of the pandemic and this month increased their outlook guidance for earnings in the first quarter, 2022. Instead of fuel, Uber is feeling the pain from their roughly 12% investment in Chinese ride hailing company DiDi (DIDI). DiDi’s share price plummeted 87% in the past year, including a -44% hammering last week after halting a planned listing on the Hong Kong stock exchange. Oof. 🔨
For those of us stuck driving to work or uni, or being the mum ‘n’ dad taxi, (despite a temporary 25c off a litre) it can be harder to avoid rising fuel prices. 🚕 If e-bikes or scooters aren’t an option, the AA reckons slowing down can cut up to 13% of your petrol use. Or if you want certainty on the price you pay at the pump, the ShareTank app by Z Energy lets you lock-in up to 1,000 litres of fuel at a fixed price. It’s a bit like fixing your mortgage, but be warned, like all commodities oil prices are volatile and can move down just as fast as they go up.