Gig workers feel the pinch as gas prices rise

For more than a decade, Alvaro Bolainez has ferried passengers around the Los Angeles area in his SUV as a rideshare driver. He’s never seen anything like what’s happened with gas this month.

“It’s changing so quick,” Bolainez told CNBC. “It’s insane.”

In Bolainez’s eyes, it feels like prices at the pump have skyrocketed “overnight” following the U.S.-Israeli strikes on Iran. Bolainez has tried to avoid shorter rides to ensure he’s turning a profit as a result. In a Facebook group, he shares tips from his years driving for a living to help others navigate this shift.

Bolainez is part of a network of millions of Americans offering services like making deliveries or ride hailing as a source of income. Because these gig-economy jobs typically require a car, the workers are acutely feeling the impacts of the rapid surge in oil prices.

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

The average price of unleaded gas jumped 22% over the last month to about $3.59 per gallon on Thursday, according to AAA. The national average is at its highest level since May 2024.

Prices last week recorded their biggest three-day increase since Hurricane Katrina ravaged New Orleans more than two decades ago, Bespoke Investment Group found. This month, gas has seen its steepest 10-day spike on record, according to Kevin Gordon of the Schwab Center for Financial Research.

“For a segment of gig workers, increasing gas prices are not only immediately painful, but also can sort of inject some fear in their day to day,” said Elizabeth Renter, senior economist at financial education platform NerdWallet.

Bolainez isn’t the only one in the gig economy world racing to adapt as costs climb.

Adrian Mussio, a food courier on platforms like DoorDash and Uber Eats, is similarly doing mental calculations to ensure she’s making the most profit on trips. She’s reminded friends that tips matter more when pump prices pop. The Pennsylvania resident began searching for online gig jobs to tide her over financially if costs remain elevated longer term.

At the same time, she’s trying to walk rather than use her car for personal matters like heading to a convenience store. When Mussio has filled her tank recently, she’s scoured apps like Gasbuddy for the lowest prices and cashes in grocery store loyalty points for oil credits when possible.

“I believe we’re in this for a good while,” Mussio said. “We have to adjust.”

Gasbuddy’s daily active user count has more than doubled over roughly the last week and a half, according to Patrick De Haan, the company’s head of petroleum analysis. Users are spending over 30% additional time on the app in that period, which De Haan said signals they’re thinking more about prices.

There’s reason to believe relief may not be coming immediately. Crude oil remains volatile as the U.S.-Iran war brews. Meanwhile, the busy spring break travel period and switch to costlier summer-blend oil usually brings price increases. Gasbuddy’s De Haan told CNBC on Wednesday that there’s a roughly 55% chance of the average gallon price reaching $4.

If prices don’t retreat soon, some gig workers are making plans to — or hoping the companies they independently contract for — implement significant policy changes.

Bolainez, who serves as vice president of advocacy group Rideshare Drivers United, said he would like to see platforms institute an additional gas surcharge. Several companies rolled out this type of policy as gas prices soared to all-time highs above $5 per gallon in the aftermath of Russia’s invasion of Ukraine in 2022.

A DoorDash spokesperson told CNBC that the food delivery platform offers a suite of discounts for drivers. Uber, Lyft, Instacart and GrubHub did not respond to CNBC’s inquiry about resources or potential policy changes for drivers.

For her one-person wash-and-fold laundry business, Ashley Manka is behind the wheel as much as two hours each day. The 33-year-old Texan is considering adding a $5 fee to longer-distance pickups to mitigate elevated gas prices.

“Everybody wants to keep costs low,” Manka said. “Whenever it’s out of your control, it just gets really frustrating.”

Estimates of the app-based gig workforce’s size vary, but Goldman Sachs found most credible studies project between 2% and 4% of the U.S. population holds such roles. This platform-based workforce has been estimated to grow between 5% and 8% annually over recent years, the bank said.

Temporary workers and independent contractors earned less per month than traditional employees, due in part to a lower average hour count, according to 2024 data from ADP. Gig platform workers are more likely to be people of color, lower-income and under 30 years old, Pew Research Center found in a 2021 survey.

For these Americans, the price at the pump is the latest challenge after a rocky past few years.

Auto insurance prices and labor costs tied to repairs have boomed since the pandemic, said NerdWallet’s Renter. Car parts may also be more expensive due to President Donald Trump’s tariff policy on many imports, she said.

Compared with the 2022 gas shock, gig drivers would likely have a harder time finding other employment opportunities given today’s relatively tighter labor market.

On top of that, drivers using apps for work don’t have the same ability to individually increase rates as other contractors when costs increase, according to Lindsey Cameron, an assistant professor of management at the University of Pennsylvania.

“This type of work is deeply unstable,” said Cameron, who studies the gig economy. Rising gas prices for drivers “exacerbates their precarity.”

Shannon Hillock, a freight dispatcher for owner-operators, sees the challenge truckers are facing with oil as a harbinger of what’s to come for the country at large.

From her perch in South Dakota, Hillock helps independent truckers negotiate jobs with companies. But she said the math has dramatically changed for these drivers: Diesel prices have skyrocketed more than 35% in 2026, outpacing unleaded gas’ 26% increase over the same period, according to a CNBC analysis of AAA data.

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

Hillock sees the knock-on effects clearly. Drivers, who she said are already operating on slim margins, will need to hike their rates to account for fuel’s ascent. Diesel has a 70% chance of hitting $5 per gallon, according to Gasbuddy’s De Haan.

As a result, Hillock said consumers should expect to see those costs passed down in the form of higher price tags at the grocery store or in retail aisles.

“Truck drivers are facing the brunt of it,” Hillock, 39, said. “But it is something that they are not going to shoulder alone. Every American is going to feel this.”