New York City proposes a 5% salary increase for ride drivers to appease Uber and Lyft
The New York City Taxi and Limousine Commission (TLC) has complied with the new minimum wage rules for riders, Bloomberg Report. Drivers will receive a 5% salary increase under the new proposal, a compromise that prevents Uber and Lyft from keeping drivers out.
The proposal requires a vote on the proposal before the TLC committee takes effect, but assumes that months of uncertainty for drivers working in the city can indeed end. Uber began sporadically locking drivers out of its apps in May 2024 to stop them from riding and making money. The company blocks access to its apps to avoid paying for drivers who are working but are not actively riding. In addition to introducing a minimum wage for drivers who offer an hourly price of about $18 per hour in 2022, New York also includes law requiring downtime payments between rides to require drivers, and Uber and Lyft naturally faced problems.
Bloomberg TLC initially proposed a 6.1% increase in an attempt to prevent Uber and Lyft from locking drivers, writes. The proposal will adjust how drivers pay will be calculated in exchange for an upfront pay raise and ensure drivers are warned before losing the ride app. The salary increase and commitment to increase by 5% annually and is not based on “changing industry dynamics” is further surrender. Obviously, it’s still not enough to accommodate Lyft. The company told Bloomberg This is “While these changes are a step in the right direction, we are still concerned that the underlying compensation formula will still deprive drivers of the opportunity to earn, raise rider prices and reduce ride availability.”
Uber and Lyft have long been controversial with city and state governments on driver protection. Compared to the passage of Proposition 22 in California, California reclassified workers at the show as contractors in the opposite case of another law, even New York’s minimum wage law has been lowered, better than nothing.
