The New York City Taxi & Limousine Commission (TLC), was established in November. Been votedTo raise the pay rates for Uber and Lyft drivers in order to offset rising inflation. Uber sued the commission in an attempt to stop the implementation the new fares. According to bloombergUber stated in its lawsuit that it would need to spend an additional $21 million-$23 million per month if new fares were implemented, and that it would be unable to recoup those costs by raising the fares.
The new rules will see drivers’ rates per hour rise by 7.4%, and rates per mile rise by 24%. The new rules will mean that drivers will be paid at least $27.15 for a 7.5-mile trip that takes 30 minutes. This is $2.50 less than current fares. A driver’s pay increase will be granted in March 2023 based on inflation rates. This is in addition to the one that was given in December, September this year. TLC spokesperson said that TLC had increased drivers’ salaries in December to lock in high gas prices this summer. They said that TLC should have made the annual adjustment and added a temporary gas surcharge if gas prices really rose.
The lawsuit filed by Uber seems to indicate that the company intends to pass on the driver’s wages costs to passengers. According to the lawsuit, “An extreme price increase, just before the holidays would irreparably harm Uber’s image, impair the company’s reputation and threaten the company’s business and customers.” TLC responded to the lawsuit by stating that Uber now charges 37 percent more than it did in 2019, but that it is keeping the money from higher fares the company has earned over the years.
UNHCR reads the statementUber sued to stop a TLC increase for app drivers. It was enacted after months of public hearings, years-long stalled wages, and a pandemic for entry. Uber refused to pay fuel surcharges for New York City-only drivers when prices rose due to rising inflation. This forced drivers in one their most lucrative markets to choose between groceries or refueling.
Uber is charging riders 37% more than in 2019, but they are keeping it secret. However, Uber claims that this slight increase for drivers will make the company break even. Shame on you, Dara Khosrowshahi. We appeal to the city to defend drivers’ right to work with dignity and stand firm. Uber seeks chaos. We seek dignity. We are confident that our victory will be achieved.”
The transportation services company is asking the court to declare invalid the new fare rates and to stop the implementation of the first increase in this month’s price while the lawsuit continues.
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