New York City’s Taxi & Limousine Commission (TLC) passed new rules on June 25 that aim to keep Uber and Lyft from locking drivers out of the apps on short notice. The TLC board unanimously approved the changes, which included a 5% pay bump from 2024, after industry advocates waged a yearlong campaign to prevent drivers from being unexpectedly shut out, sometimes in the middle of a shift.
Drivers who packed the TLC boardroom in Lower Manhattan erupted in applause after the agency signed off on the regulations meant to prevent companies from “manipulating data by pumping up utilization rates” – the metric that reflects the amount of time drivers spend transporting passengers.
“It’s affected 99% of the driver population,” announced Brendan Sexton, president of the Independent Drivers Guild (IDG), which represents about 80,000 for-hire vehicle (FHV) drivers in the city. “Uber and Lyft are paying our city’s rideshare drivers less than minimum wage, and it needs to end now.”
Members of the IDG arrived before the vote on the proposed rules to show their solidarity on the issue, saying that these billion-dollar app companies have opposed the raise despite an extensive study commissioned by NYC showing that Uber and Lyft are paying city drivers less than minimum wage after expenses. An IDG analysis of city data also showed that Uber more than tripled the amount it took from each NYC trip fare, with the company taking less than $2/trip in 2019 to taking nearly $7/trip in 2024. (Learn more at https://driversguild.org/driverpay/.)
Drivers that rallied at City Hall in June are also supporting a bill from Councilmember Shekar Krishnan (D-Queens) that would create an independent panel to review cases before drivers are deactivated.
“Today is a great day for our drivers, for our advocates and for all those who work in the for-hire industry,” David Do, TLC commissioner and chair, said after the vote. “Your advocacy over the last year has made today a reality.”
By limiting driver access to the apps, the tech companies were able to curb wages by making it look as if they were spending a higher share of their time on passenger trips, according to an article in The City.
Under the new rules, Uber and Lyft must give drivers at least 72 hours’ notice before cutting off access to the apps and may not log drivers off for 16 hours, except under limited circumstances. Previously, the companies could sign drivers off the system during certain periods without any regulation.
