NYC offers a 5 percent raise to RideShare drivers in an attempt to calm Uber and Lyft

The New York Taxi and Limusals Commission (TLC) has settled on new rules for a minimum wage for RideShare drivers, Bloomberg Reports. Drivers will receive a five percent increase in the new proposal, a compromise to protect Uber and Lyft to exclude drivers from their applications.

The proposal must be voted on by the TLC Council Council before it comes into force, but if we assume it will end the months of uncertainty for drivers operating in the city. Uber began to lock the drivers from his application in May 2024, preventing them from taking a ride and making money. The company is blocking access to its app so as not to have to pay to drivers who work but do not actively ride. In addition to introducing a minimum salary for drivers who started about $ 18 an hour in 2022, New York also includes arrangements in their law that require drivers to be paid for a stay between vehicles, something that Uber and Lyft naturally had a problem.

Bloomberg It says TLC originally offered a 6.1 percent increase in an attempt to abandon Uber and Lyft from locking drivers. The proposal will adjust how the driver’s payment is calculated, in exchange for a preliminary increase and a guarantee that drivers are warned before losing access to RideShare application. Setting up a five percent increase and commitment not to raise salaries annually and instead is based on the « changing dynamics of the industry » is additional surrender. What is not yet enough for Lyft, obviously. The company said Bloomberg This, « Although these changes are a step in the right direction, we still have fears that the main payment formula will still deprive drivers of winning opportunities, will increase prices for riders and reduce the availability of ride. »

Uber and Lyft have long had controversial relations with the governments of the city and the state because of the protection of drivers. Compared to the transition of Prop 22 to California, which reclassified the concerts as performers after another law did the opposite, even the reduced minimum wage law in New York is better than nothing.