A rate increase that would have increased the income for Uber and Lyft drivers in New York City has been overturned by a judge. In December, Uber filed a lawsuit against the city’s Taxi & Limousine Commission (TLC). It alleged that the TLC’s calculation of the per-minute and per-mile fee increases was inaccurate. Justice Arthur Engoron of the Manhattan state court concurred.
Engoron, a former college taxi driver. He said, “It’s just not enough to claim there’s inflation, and 100 drivers stated gas prices shot up.”
The first metered rate increases in the city in ten years were overwhelmingly authorised by the TLC in November. The rate increase also included increases for ridesharing trips. Rates for each minute and mile were expected to increase by 7.4% and 24%, respectively. According to the proposed price changes, a ridesharing driver would have made at least $27.15, more than $2.50 higher than the going rate for a 7.5-mile, 30-minute trip.
Uber contended that the price hikes would hurt its reputation while raising passenger fares. A judge issued a temporary restraining order to stop the rate increases a few days after Uber filed its lawsuit and before they took effect on December 19.
“Drivers do critical work and deserve to be paid fairly, but rates should be calculated in a transparent, consistent and predictable way,” Uber spokesperson Josh Gold told Bloomberg. Existing TLC regulations still provide for a yearly review based on inflation, which will happen in March.
According to the corporation, the cost of implementing the salary increase would be between $21 million and $23 million a month. Uber reported a net loss for the three months of July to September of $1.2 billion.
To prevent a salary rise for NYC drivers, Uber launches a lawsuit.
The Taxi and Limousine Commission (TLC) of New York City voted in November to raise the pay rates for Uber and Lyft drivers to compensate for inflation and operating expenses. On December 19, the new prices were to go into effect, but Uber has now filed a lawsuit against the commission to prevent that from happening.
Uber claimed in its lawsuit that if the higher rates were put into effect. Then it would have to spend an extra $21 million to $23 million each month. In addition it wouldn’t be able to recover those expenses without increasing charges.
It should be noted that under the new regulations, drivers per-minute and per-mile fees. They both will increase by 7.18 and 16.11 per cent. Accordingly, a driver would make at least $27.15, or $2.50 more than the going rate, for a 7.5-mile, 30-minute journey.
Based on the difference in inflation rates between December and September of this year and March of 2023. The drivers will also receive another wage increase. According to a company representative, TLC is “locking in this summer’s high gas prices in perpetuity.” It will be raising drivers pay this December.