The Iran war has sent gas prices soaring amid a national affordability crisis, and the situation is so bad that DoorDash has started offering subsidies to its delivery drivers.
The United States and Israel attacked Iran on February 28. In retaliation, Iran shut down most traffic through the Strait of Hormuza crucial waterway that poses as the gateway to the Persian Gulf oil reserves. About a fifth of the world’s total oil consumption flows through the strait which has now been effectively blocked as the war enters its fourth week.
The result has been skyrocketing prices around the world and especially in the United States. Gasoline prices in some states, such as Texas and Colorado, have soared more than 30% in the last two weeks alone, according to the New York Times. Nationally, the average price of gasoline is just four cents shy of $4 per gallon, according to AAA.
DoorDash announced Monday that it is enacting “an emergency relief program” to help address some of the financial burden this could place on delivery drivers who work for the platform. Drivers in the US with a DoorDash Crimson Visa Debit Card will earn 10% cash back on gas purchases at any station, whether they’re on delivery or not.
The company will also offer a weekly fuel relief payment of $5 to $15 for Dashers who drive 125 miles or more for work.
“Dashers could save between $1 and $1.50 per gallon with weekly relief payments alone, depending on how many miles they run,” the company said in a press release.
Both programs will run through April 26, the company said.
In addition to the new assistance program, DoorDash is also highlighting its existing program to offer financial assistance to drivers who want to switch to electric vehicles, such as a 2% cash back on EV charging and other discounts.
As the Iran war has sent gas prices soaring, experts believe drivers could find electric vehicles a more attractive option compared to the volatility of gas amid geopolitical uncertainty. According to car buying platform CarEdge, online searches for electric vehicle models are up to 20% since the beginning of the war. The auto retailer also saw a similar rally. CarMax.
