Gas prices have risen more than 30% since the Iran war began a month ago, with the average price of a gallon approaching $4 nationwide.
The spike could have an impact on restaurant sales. And it’s having an acute effect on another key cog of the restaurant economy: The millions of drivers who deliver food for apps like DoorDash and Uber Eats.
Those deliveries make up a growing share of industry traffic, and they’ve gotten more expensive for drivers over the past few weeks.
“Instead of making $600 per tank I currently make $585,” one person wrote on a Reddit forum for DoorDash drivers earlier this week. “Nothing I can do about it, so I just keep working.”
Third-party delivery drivers earn a base rate that varies depending on the order, plus tips. They are responsible for covering their own expenses, including gas.
When gas prices rise, delivery drivers may need to think more carefully about the orders they accept, said Sergio Avedian, senior contributor to The Rideshare Guy and a driver himself for 10 years. He suggested avoiding short trips in stop and go traffic, for instance, and prioritizing ones that involve freeways, where cars get more miles per gallon.
“You have to be more picky now about what trips you're picking,” he said. “You have to do a little bit of math before you jump on the offer that they present you.”
And some drivers will simply take a break from delivering until gas prices come down, he said, especially those who use gig work for supplemental income.
The good news for restaurants? These changes are not likely to impact their delivery business anytime soon. The driver supply is deep, and people need the money, so there will be plenty of workers available to pick up orders, Avedian said.
“Short term, I don't think it's going to make any difference as far as consumers waiting longer to get their food delivered,” he said.
But that could change if the Iran conflict drags on. “Everybody at some point will figure out, ‘OK, this is not profitable for me.’”
There’s no clear end in sight for the war or for Iran’s clampdown on the Strait of Hormuz, a key oil supply route. On Thursday, President Trump pushed back to April 6 a deadline for Iran to reopen the strait or face U.S. strikes on its power plants. He also said that the U.S. is negotiating with Iran, though Iran has denied that.
In the meantime, delivery apps have taken steps to help ease fuel-price inflation for drivers. On Monday, DoorDash boosted the cash-back rate for workers that use its DoorDash Crimson Visa debit card. From now until April 26, they’ll get 10% back when they buy gas, up from the standard 2%.
It’s also offering relief payments for couriers who drive 125 miles or more while delivering, up to $15 a week, based on the mileage. The company said this could help drivers save $1 to $1.50 a gallon, depending on how many miles they drive.
Uber Eats on Wednesday rolled out its own relief options, including larger discounts through the Upside app and Shell Fuel Rewards program and up to 15% cash back for drivers that use the Uber Pro Card, through May 26. The company said top drivers can save up to $1.44 per gallon by combining these offers. It’s also investing in more promotions and incentives for drivers.
Avedian said the help is nice, but mostly symbolic.
“You have to be registered for all these things to be able to get the benefit,” he said. “And since a lot of drivers don't use these debit cards, the benefit is going to be muted.”
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