App driver boost
New regs would lift average pay to $17/hr.
Uber and other e-hail drivers may see a surge in their pay thanks to a new policy from taxi officials that sets the industry's first minimum wage.
A formula that would set a pay standard for drivers got approval Tuesday from taxi officials who wanted to boost sagging wages for drivers.
The new wage would give for-hire drivers an extra $10,000 a year on average, earning at least $17.22 an hour, after expenses.
“Companies are saying paying drivers fairly will cause longer wait times and higher prices,” Meera Joshi, chairwoman of the Taxi & Limousine Commission, said in a statement. “But I believe all New Yorkers are willing to pay a little more and wait a little longer so the people transporting them are able to provide for themselves and their families.”
The one “no” vote on the policy came from taxi commissioner Nora Marino for being too weak on driver pay and confusing. Marino suggested a rule that'd give drivers 80% of the passenger's fare — a policy that is being pushed by taxi driver advocates.
“I know how important it is to have a fair minimum wage,” Marino said. “I don't think they go far enough.”
Drivers who carry passengers for Uber, Lyft and other apps have complained about dwindling pay from trips and more competition on streets that have been flooded with new drivers — prompting the City Council to pass a cap on new cars and raise wages.
“It's the first real attempt anywhere to stop app driver pay cuts, which is an Uber and Lyft business practice at the heart of poverty wages,” Bhairavi Desai, director of the New York Taxi Workers Alliance, said in a statement. “Just as it did with the vehicle cap, New York City is once again passing landmark regulation to protect workers in the unruly gig economy.”
Taxi officials issued a study that found that 96% of highvolume for-hire apps earned less than $17.22, which is the same as a $15 wage for independent contractors.
The formula charges 63 cents for each mile and 28 cents for each minute of a trip, then divides each by an industry-wide “utilization” rate — the average time these drivers have no one in their cars.
Taxi officials will announce the rate this week, which will be in place for a year followed by a rate that will be calculated app by app.
The e-hail app giants trashed the TLC's effort to boost driver pay, warning that riders will pay more than necessary.
“The TLC's implementation of the City Council's legislation to increase driver earnings will lead to higher than necessary fare increases for riders while missing an opportunity to immediately reduce congestion in Manhattan's central business district,” Uber spokesman Jason Post said.