Hundreds of disgruntled Uber drivers went on strike outside the Queens headquarters on Monday to protest against the company's latest round of price cuts as they believe this would significantly affect their wages.
The ride-hailing service announced last month that it will reduce its fares in New York City by as much as 15 percent in order to get an edge against its chief rival Lyft. The base fare for rides in the city was cut from $3 to $2.55, the price for each mile traveled went from $2.15 to $1.75 and the rate per minute dropped from 40 cents to 35 cents.
Uber's minimum charge was also reduced from the standard $8 to $7.
While the move serves to benefit Uber users, drivers working for the company fear that it might force them to work longer hours just to earn enough money to cover rent and other expenses.
"New York City just keeps getting more and more expensive," Tsering Sherpa, one of the protesting Uber drivers, says. "How are we supposed to survive with less money?"
Bhairavi Desai, a representative of the New York Taxi Workers Alliance, points out that drivers will not benefit from Uber's fare cut. She said the driver's livelihoods are being auctioned off, which is something that is unacceptable.
Uber, however, explains that its decision to lower rates is meant to help drivers get more rides, especially during busy months and slow time in the city.
"In New York, things tend to be quieter after the holidays," Uber says. "We lowered prices to get more people using Uber, which is good for drivers because it means less time waiting around for trips."
The company adds that when they had previously reduced prices, it allowed Uber drivers to get rides quickly. They were able to do more business and earn more money because of it.
Desai, however, says that Uber has failed to consider the drivers' opinions before implementing the fare cut. This gives the impression that the new fares are binding, and no longer negotiable.
Aside from New York City, Uber's round of fare cuts will also be carried out in other cities in Canada and the United States where the service is available.
