Amazon.com unveiled a double cashback rewards program on fuel purchases to up to 12.00% for Flex debit cardholders. This move would help its delivery partners amid the surging fuel prices.
Accordingly, gasoline costs have edged up more than 20.00% from last month. The sky-high crude rates have mainly driven the upsurge.
Western countries have avoided Moscow oil purchases due to the escalating conflict in Eastern Europe, pulling the global energy supply.
The American e-commerce giant ensured that it would closely monitor the ongoing situation.
Additionally, it would immediately make future adjustments if needed to support its transportation partners.
Amazon Flex operates like the on-demand ride-hailing service Uber. The segment handles deliveries of common household goods to customers through programs like Prime Now.
Subsequently, drivers use their own vehicles and gas. They usually earn over $26.00 per hour on average in the United States.
Meanwhile, the tech giant covers the fuel costs for its delivery service partners. It is similar to Amazon Freight Partners, which enlists independent trucking companies to move goods.
In mid-March, the company’s delivery drivers rallied in Los Angeles, demanding help amid the mounting gas prices.
The switch to electric or hybrid vehicles could be one way for drivers to save money on gas.
However, the EV market remains inaccessible for lower-income drivers, which make up most of the ride-hailing and Flex driving population.
On Wednesday’s trading, Amazon’s stock closed by 1.78% or 60.28 points lower to $3,326.02 per share. Then, it slightly rose 0.42% or 13.86 points to $ 3,339.88 in the after-hours session.
Nevertheless, the firm still stands firmly with a market capitalization of $1.69 trillion.
AmaAmazon follows Lyft, Uber
The latest move of Amazon came after rideshare and food delivery firms have launched surcharges to help drivers.
On March 21, Lyft Direct cardholders will receive an increase in cashback rewards of 4.30% to 5.00%. This incentive would be applicable on purchases of gasoline until June 30.
In the stated case, the users can save up to $0.21 per gallon on average. Correspondingly, this move is in partnership with fintech company Payfare, aiming to retain drivers.
Earlier this month, Lyft announced that riders in the US would have to pay an extra $0.55 for their commute.
This adjustment came as the ride-hailing business looked to cushion the impact of high gas prices on drivers.
Similarly, Uber mentioned that US customers would pay a fuel surcharge of $0.45 to $0.55 on each trip.
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