The New York City Taxi and Limousine Commission voted on Tuesday to set a minimum pay rate for drivers who work for app-based companies like Uber and Lyft.
This new rule will come into effect t in 20 days, as per the new rule it will require drivers to be paid at least $27.86 an hour, which translates to $17.22 after expenses. According to a study from TLC, most drivers currently earn around $11.90 an hour. This change increases the yearly earnings of drivers by $9,000.
The New York Taxi Workers Alliance (NYTWA) applauded the change, citing years of activism in hopes of achieving an increase like this the NYTWA said: “It’s the first real attempt anywhere to stop app driver pay cuts, which is an Uber and Lyft business practice at the heart of poverty wages.
In a statement, Uber said the new rule would likely lead to fare hikes for users of the ride-hailing service. Uber supports efforts to ensure that full-time drivers in NYC whether driving with taxi, limo or Uber are able to make a living wage, without harming outer borough riders who have been ignored by yellow taxi and undeserved by mass transit, a spokesperson added.
Lyft voiced similar sentiments as Uber, saying, “These rules would be a step backward for New Yorkers, and we urge the TLC to reconsider them.”
Via already pays drivers a higher than minimum wage, supported the move. In a statement to the company said, As the industry leader in driver earnings in New York City, we are looking forward to working with the TLC on implementing this rule.