New York City drivers of Uber and Lyft services will be having an increased minimum pay rate, as the driver shortage increased post-pandemic due to operational costs that are continuously leaping. This decision was voted by New York City Taxi and Limousine Commission (TLC).
Increased Minimum Pay Rates
Because of high operational costs, the New York Taxi and Limousine Commission voted to increase the minimum pay rates for drivers, as driver shortage emerges after the pandemic. As per Bloomberg's report, the rates per minute of ride-hail drivers will be increased to 7.42% and 23.93% for the rates per mile.
There will also be an increase to the yellow and green cab fares to 23%, which will be the first increase since 2012. "This is the first taxi fare increase in ten years, and these raises will help offset increased operating expenses and the cost of living for TLC-licensed drivers," TLC Commissioner David Do stated. He also added that he, along with the whole TLC, remains confident that the increase will keep the city's taxis and FHV fleets as sustainable as ever.
Metered rides, which originally costs $2.50, will now have a new drop rate of $3.00. While unit rates will climb up to $0.70 from $0.50. TechCrunch gave an example of how the increase will look like. If your total fare before is $15.97, it will now cost you $19.62.
The increase is an addition to the 5.3% increase that Uber and Lyft drivers received in February. Despite this increase from earlier this year, drivers were still struggling due to high inflation and increased operational costs.
Also Read : Uber is Taking Over New York's Taxi Industry, Book a Ride Through it with Same Price as UberX
Previous and Future Increases
Meanwhile, the New York Taxi Workers Alliance (NYTWA) stated that drivers from these services will also receive an additional rate bump in March next year, depending on inflation comparing September 2022 to December 2022. According to a report from Engadget, this will be the first part of the drive to make sure that drivers will be receiving at least $25 per hour in take-home pay.
"We're going to take the momentum of this driver raise which comes despite company opposition and after a long delay, and use it to power our fight for a job with dignified incomes, job security and retirement," NYTWA Executive Director Bhairavi Desai stated.
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Written by Inno Flores
