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.

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…