Uber responds to gas tax by increasing fares
Nearly everyone has an opinion on the impending gas tax and now Uber is putting in it's 2 cents in as well...to be more precise, the company will hike its fares by 2 cents per mile.
In a statement Monday, the company said it will "counteract" the state's gas tax by passing the increase along to it's customers in the form of a 2-cent per mile fare increase.
As of midnight Tuesday, New Jerseyans will be paying an additional 23 cents per gallon for gasoline. The tax hike was approved by the Legislature and signed into law by Gov. Chris Christie. It will be the first significant increase the state has seen in roughly three decades.
"The tax increase will disproportionately hurt those who use their personal cars for income, and we want to minimize that pain," Uber said in a statement.
Ana Mahony, Uber New Jersey's general manager, said the increase will help support their drivers.
“We’re making this change to support our driver-partners in the face of New Jersey’s historic gasoline tax hike," Mahoney said. "This per-mile price increase will help drivers’ bottom lines, without impacting affordability for riders.”
The increase, Uber says, is meant to keep the transportation company's drivers from taking a major hit as a result of higher gas prices. The company, maintains, however, that the impact will be minimal for Uber customers.
Uber also said riders will be able to see the cost of their fares before they ride, so that "there are never any surprises once your trip is over."
New Jersey last increased the gas tax in 1988. When the tax goes into effect, the state will go from having the nation’s second lowest gas tax - 14.5 cents - to its seventh highest, 37.5 cents. Future gasoline sales could also make the tax inch higher or lower.
Toniann Antonelli is a social content producer for NJ 101.5. She can be reached at firstname.lastname@example.org, or on Twitter @ToniRadio1015.
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