For the past month, Uber has been dropping New York City drivers from its program during periods of low demand, and Lyft is threatening to do the same. Bloomberg reports ride companies blame New York City Taxi and Limousine Commission (TLC) regulation for their behavior. At least one driver’s union has said it may consider a strike if the lockouts continue.
The mid-shift lockouts stem from a six-year-old NYC pay rule that requires fare-sharing companies to pay drivers for idle time between fares. Limiting how long drivers without passengers can pay means Uber pays less, but it also means drivers take home less money at the same time. And they cannot predict when they will lose access to the program.
Drivers are understandably angry. Nikoloz Tsulukidze, a full-time Uber driver, says, “I was working 10 hours and making $300-$350.” Bloomberg. “Now I just worked 10 hours and barely made $170. I was very disappointed. I pay for gas and I can’t make money.”
Uber and Lyft “Look What You Made Me Do!” strategy is to turn drivers into anti-regulation lobbyists by pointing fingers at the TLC’s fee arrangement (and each other). Last month’s Uber email to drivers, viewed Bloombergencouraged drivers to “report to TLC the impact of their rules on their wages.”
The fact that the rule affects companies differently is also a factor in their blame games. Uber drivers have been busier this year, meaning its numbers weigh more heavily in city averages that determine minimum payment limits. “The city’s ordinance strangely holds Uber responsible for Lyft’s failures,” Uber spokesman Freddy Goldstein said. Bloomberg. “While Lyft struggles to keep drivers engaged, we have no other options.”
Meanwhile, Lyft (naturally) sees the situation the other way around. “Uber wants to change the rules so that Lyft is penalized,” the company said in an email to drivers in June. “The current NYC payment formula is broken,” Lyft spokesman CJ Macklin said Bloomberg. “This forces rideshare companies to limit when drivers can earn and therefore how much they can earn.”
The drivers’ union says Uber’s over-recruitment is the main reason for the trials. Bhairavi Desai, president of the New York Taxi Workers Alliance, said this Bloomberg the company “mismanaged” recruitment by allowing too many drivers to join its ranks, and workers are now left to foot the bill. He accused Uber of “gaming the system” by using the TLC’s rule to “take statutory time and make it unpaid.” Desai says the union will consider a strike if necessary.
While Lyft hasn’t started locking out drivers yet, it might. An email sent to the company’s drivers in June warned that it would soon have to adopt a similar practice.
The current turmoil in NYC follows a long series of ugly battles across the country between ride-sharing companies and city regulations. Uber and Lyft Similar blockades were made in 2019 in response to a fixed minimum wage requirement for drives that last until next spring. Earlier this year, two companies He threatened to withdraw from Minneapolis after the city tried to force driver wages to rise to the equivalent of minimum wage.
