November 27, 2022

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Uber and Lyft will pay NYC drivers more by the end of the year • Eureka News Now

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Uber and Lyft must raise minimum wages for drivers in New York City by the end of the year, Engadget reports. The fare hike comes amid a post-pandemic driver shortage, largely due to rising operating costs.

The city’s Taxi and Limousine Commission (TLC) voted to increase per-minute rates for rideshare drivers by 7.42% and per-mile rates by 23.93%. Yellow and green taxi fares will also increase by 23% by the end of this year.

The Commission hopes that the increase in tariffs will attract more taxis and drivers to the streets to meet rising passenger demand.

“Raising cab fares and the minimum wage for frequent travelers is what’s right for our city,” TLC Commissioner David Do said in a statement. “This is the first taxi fare increase in ten years, and these increases will help offset increased operating costs and the cost of living for TLC-licensed drivers.”

Under the new rates, a sample 30-minute drive covering 7.5 miles requires a minimum driver fee of $27.15, which TLC says is $4 over the original rates and more than $2.50 over the current rates . The commission found that this is still a minimum and companies can pay drivers more than this amount. Companies will continue to decide how much to charge passengers.

It’s not yet clear how this will affect Uber and Lyft customers, and neither company has yet said whether they will pass the cost on to passengers. Regarding metered rides, the new drop rate is $3.00, up from $2.50. Unit prices will increase from $0.50 to $0.70. According to TLC, this represents an increase in passenger fares of approximately 22.9%. So a $15.97 ride is now $19.62.

In February, Uber and Lyft drivers received a 5.3% increase in the minimum driver wage rate due to inflation and higher operating costs. Today’s fare increase is on top of that. Ride-hail riders can also expect an additional fare increase in March based on the inflation rate compared between December 2022 and September 2022.

Last month, Uber asked the city to vote against the proposed fare increase, saying it was “not economically viable” because it meant the agency would lock in this summer’s high gas prices and only allow spending in future rise.

“While moving away from dynamic wage rates has long been an overstatement, enacting a rule that specifically states it will not reflect economic reality going forward is damaging to passengers, drivers and the credibility of the agency,” said Freddi Goldstein, a spokesman from above.

The New York Taxi Workers Alliance (NYTWA) welcomed the fare hike and said it would provide impetus to boost drivers’ earnings after expenses to $25 an hour.

“This increase is very important for us. After paying $2,300 a month in rent, expensive gas and groceries, what do I have left at the end of the day?” said Mamadou L Diallo, NYTWA member and Uber and Lyft driver, in a statement. “Our families, parents and children depend on us, but that’s not enough. We make New York a 24-hour city. We deserve this raise!”

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