DoorDash Inc. (NASDAQ:DASH) CEO Tony Xu has shared that the platform will help drivers with cashbacks and weekly payments to help offset rising fuel costs.
Emergency Relief Program
DoorDash, in a post on X on Monday, touted the platform’s emergency relief program, which would offer a 10% cashback at any time with a DoorDash Crimson Visa Debit Card. “Dashers can fill up at any U.S. gas station whether they are on a dash or not,” the official statement from the food delivery platform said.
The platform will also offer weekly relief payments to drivers 125 miles or more while actively on deliveries. The weekly payments range from $5 and go up to a maximum of $15 based on miles driven.
Tony Xu Touts New Program
“We’ve heard loud and clear from Dashers that rising gas prices are hitting their wallets,” the DoorDash co-founder said in the post. He also said that the cashback was “5 times the usual rate.”
According to the American Automobile Association (AAA), the national gas price average on Monday was $3.956, with gas prices at the pump for a gallon surging to $5.790 in California.
Surging Fuel Costs, Iran War
The news comes as fuel costs have skyrocketed following the conflict in the Middle East, with Iran announcing a blockade at the Strait of Hormuz, which is a key shipping route responsible for transporting over a fifth of the world’s crude oil supply.
President Donald Trump had earlier issued a 48-hour ultimatum to Iran to open up the Strait, and shared that talks were progressing well with Iranian authorities, which the latter have denied.
Meanwhile, fuel prices continue to rise, inviting criticism from leaders like Elizabeth Warren (D-Mass), who noted that gas prices were up 27% in a month’s time. California Governor Gavin Newsom (D) also slammed the Trump administration for rising gas prices at the pump.
Uber, Lyft Drivers Share Woes
Drivers on the Uber Technologies Inc. (NYSE:UBER) and Lyft Inc. (NASDAQ:LYFT) platforms driving gasoline vehicles shared that they were prioritizing profitable trips to hedge earnings, even if the trip requires driving to unsafe areas, as EV owners reported increased business.
Transportation Secretary Sean Duffy, on the other hand, defended the Trump administration, sharing that the Energy Dominance initiative had resulted in gas prices that were below $3/gallon.
According to Benzinga Edge Rankings, DoorDash offers poor Momentum and Growth.
Price Action: DASH surged 2.13% to $159.98 at market close on Monday, surging 0.48% further to $160.75 during overnight trading.
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