Uber and other gig economy firms urged to support drivers as fuel costs surge following Iran conflict
- Perry Richardson
- Apr 2
- 2 min read
Gig economy operators including Uber, Deliveroo and Bolt are facing calls from union leaders to provide financial support to drivers as fuel prices climb sharply due to the conflict in Iran.
The GMB Union has formally written to the three firms, warning that rapidly increasing petrol and diesel costs risk placing unsustainable pressure on drivers who rely on platform-based work for their income. Fuel prices have risen at their fastest rate since 2022, with diesel prices rising 40p in just one month in March.
The appeal highlights growing tension between gig economy business models and external cost shocks, particularly where drivers shoulder the majority of operating expenses. Unlike traditional employment structures, many platform drivers are responsible for fuel, maintenance and insurance costs, leaving margins exposed to sudden market shifts.
Eamon O’Hearn, a national officer at the union, said platform operators should step in to support their workforce during the current volatility. “Gig economy giants like Uber and Deliveroo make money all year round from drivers’ hard work,” he said. “Now times are tough - our members need some help back. The conflict in Iran has caused an unprecedented spike in fuel prices - bosses need to help drivers now if they want to keep them on the platform.”
GMB union calls on Uber, Deliveroo and Bolt to step in as rising pump prices place immediate financial strain on drivers
While private hire drivers working via apps can see fares fluctuate through dynamic pricing mechanisms, the situation is more constrained in the regulated taxi sector. Licensed taxi drivers typically operate under fares set by local licensing authorities, meaning they cannot immediately pass increased fuel costs on to passengers.
Industry data suggests the financial impact on taxi drivers can be significant due to high annual mileage. A full-time driver can cover between 30,000 and 40,000 miles each year. At an average fuel consumption rate of around 30 miles per gallon, this equates to approximately 4,545 to 6,060 litres of diesel annually.
Recent increases means just a 17 pence per litre rise can translate into additional yearly costs of roughly £773 for drivers covering 30,000 miles and more than £1,000 for those reaching 40,000 miles. These increases are absorbed directly by drivers in the short term, with no immediate mechanism to adjust fares.
The lag stems from how taxi tariffs are calculated. Local authorities typically review fares using a cost index that reflects historic operating expenses, including fuel, insurance and vehicle costs. Because these reviews are conducted ahead of implementation, tariff changes often fail to keep pace with real-time fluctuations in input costs.
The situation remains fluid, with fuel price movements closely tied to geopolitical developments. For now, both gig economy drivers and traditional taxi operators are navigating a period of heightened cost pressure with limited immediate relief mechanisms in place.
