The Iran war has sent gas prices soaring in the midst of a national affordability crisis, and the situation is so bad that DoorDash has begun offering subsidies to its delivery drivers.
The U.S. and Israel struck Iran on February 28. In retaliation, Iran closed most of the traffic through the Strait of Hormuz, a crucial waterway posing as the entrance to the oil reserves of the Persian Gulf. Roughly one-fifth of the world’s total oil consumption flows through the strait that has now been effectively blocked as the war enters its fourth week.
The result has been soaring prices around the globe and especially in the United States. Gas prices in some states, like Texas and Colorado, have shot up more than 30% in the past two weeks alone, according to the New York Times. Nationwide, the average gas price is only four cents short of $4 per gallon, according to AAA.
DoorDash announced on Monday that it is enacting “an emergency relief program” to help address some of the financial burden this might be placing on the delivery drivers working for the platform. Drivers in the U.S. with a DoorDash Crimson Visa debit card will earn 10% cash back on gas purchases at any station, whether they are on a delivery or not.
The company will also be offering a weekly fuel relief payment of $5-15 for Dashers who drive 125 miles or more on the job.
“Dashers could save an estimated $1 to $1.50 a gallon from weekly relief payments alone, depending on how many miles they dash,” the company said in a press release.
Both programs will run until April 26, the company said.
On top of the new relief program, DoorDash is also highlighting its existing program to offer financial assistance for drivers looking to switch to electric vehicles, like 2% cash back on EV charging and other discounts.
With the Iran War sending gas prices soaring, experts think drivers might find electric vehicles a more appealing choice compared to the volatility of gas in the face of geopolitical uncertainty. According to car-buying platform CarEdge, online searches for EV models are up 20% since the beginning of the war. A similar uptick was also seen by the auto retailer CarMax.
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