Uber Wants to Cut NYC Driver Pay, Citing Lower Gas Prices, But Drivers Say It's a Cost-Cutting Trick

Uber Wants to Cut NYC Driver Pay, Citing Lower Gas Prices

Uber is asking the New York City Taxi and Limousine Commission (TLC) to reduce the minimum pay for drivers, citing recent drops in gas prices and used car costs. The company proposes lowering the per-mile rate by 6.1%, which would reduce the average trip fare by 42 cents.

This move comes as Uber faces a decline in ridership due to increased insurance costs, which the company has passed on to riders. The company argues that the reduced driver pay would help make rides more affordable and keep up with inflation.

Drivers Accuse Uber of Locking Them Out of Apps to Avoid Paying Wages

However, drivers are skeptical of Uber's motives. They point to a recent Bloomberg investigation that revealed Uber and its rival Lyft were locking drivers out of their apps to avoid paying millions in wages. These lockouts, which lasted for minutes or hours at a time, were allegedly designed to make drivers appear busier on paper and discourage the TLC from raising the minimum wage for drivers.

The New York Taxi Workers Alliance, which represents nearly 30,000 drivers, is calling on the TLC to consider these lockouts when recalculating driver pay. The alliance claims that these lockouts have made it difficult for drivers to make a living wage, forcing them to work extra hours just to get by.

TLC Reviewing Uber's Petition and Proposed New Rules

The TLC has said it is reviewing Uber's petition and plans to propose new rules soon. While the commission hasn't committed to adopting the alliance's demands, it has acknowledged the need to close loopholes that allow rideshare companies to exploit drivers.

Uber's request to lower the minimum driver pay rate will be subject to a 60-day review period by the TLC, during which time the commission will determine whether to approve or deny the request. The commission's decision will have a significant impact on the livelihoods of thousands of rideshare drivers in New York City.

Drivers Face Rising Insurance Costs

Despite Uber's claims, drivers are facing increasing insurance costs, an expense that is not addressed in the company's petition. Uber argues that the previous pay increases have covered these costs, but drivers maintain that this is not the case.

This issue highlights the ongoing struggle between rideshare companies and drivers. While companies like Uber seek to minimize costs and maximize profits, drivers face the reality of a volatile market and the pressure to make a living wage.