While the experience of hailing a ride from companies like Uber and Lyft is classy for passengers, there are times when it is the drivers who suffer.
Recently, the Taxi and Limousine Commission in New York City told the media it is proposing a pay increase for drivers to ensure these for-hire vehicle operators receive “fair pay.”
But, ridesharing platforms like Uber and Lyft are not agreeable to this, with Uber even saying they are taking legal action. Here’s the story.
‘Fair pay’
The New York City Taxi and Limousine Commission is now working to ensure for-hire drivers of vehicles from ride-hailing platforms receive fair pay.
The commission is hearing the hearts of the abused. Bhairavi Desa, the president of the New York Taxi Workers Alliance advocacy group, said some drivers are losing “as much as 50 percent of their income.”
“All drivers ended up working longer so per hour they ended up working less,” the advocacy group’s president further reported.
Hence, the pay increase proposal. The commission will implement a six percent increase for drivers, which shall be shouldered by rideshare companies like Uber and Lyft. Now, they must pay drivers this amount for the time they spend if passenger rate drops below 53 percent in the Big Apple.
Loopholes
Of course, ridesharing companies cannot simply say “yes” to this new rule. This threshold previous led them to lock out drivers to inflate the rate artificially, which means fewer drivers then higher utilization.
But, the commission is swift to act. They proposed a formula that also accounts for utilization based on miles traveled to and from a fare. Thus, utilization rates are going to be re-evaluated as needed instead of yearly.
The commission, David Do, said the companies would have to convene to adhere to the proposed change, and so there are no minimums to meet, saving them financially. But, Do buckled.
“Now we’re saying if you get far too low and you’re not utilizing our drivers enough, then we will step in and change the rules,” he said.
‘Unfair’
The commission also proposed brand-new rules for the driver lockout problem. To avoid this, companies must notify their drivers 72 hours in advance. They are also not allowed to lock them out for 16 hours, especially if they are already logged onto the app.
Uber is saying “no” to this change, warning it would take legal action. Meanwhile, Lyft spoke with the media.
Lyft official said, “The city’s driver pay formula is fundamentally broken, and the [commission;s] proposed ‘solution’ only makes it worse. It doesn’t solve why drivers were being locked out in the first place…. It’s clear nobody is happy with the current situation."
Unfair for companies, unfair for drivers. How the drivers are hurting is now showing.
“Last week I was complaining to the union I drove all the way from New Jersey to the Bronx,” noted driver Daouda Diaby. “And I was being paid $16 and I thought this is really unfair.”
The proposal is now open for public comment and the Ridesharing Forum team is taking part. So, let us know your thoughts by participating in the forum today.