Ridesharing remains under fire from regulatory proposals that could put the brakes on the sharing economy in New York City.
Following the introduction of legislation in the City Council that would drive up costs and limit choice by capping cars and restricting drivers to specific regions of the city, the talk turned to a guaranteed wage.
The Taxi and Limousine Commission proposed a $17.22-per-hour minimum wage for drivers for Uber and other ride-hailing apps.
While the Mayor’s top taxi official supported the proposal, one of his spokesman said that the Mayor and City Council have not made any decisions on the path to take, throwing some cold water on the idea.
Specifically, the proposed rules would require companies to make up the difference if a driver’s earnings fall below $17.22 per hour over the course of a week. The median net hourly earnings among drivers were roughly $14.25. The goal is to bring pay up to the job-killing $15 minimum wage that the city is moving toward, taking into account additional expenses drivers have.
The proposal also suggests that the ride-hailing companies cut their commissions in order to make up the cost of raising wages.
The rules would apply to four major car service apps: Uber, Lyft, Via, and Juno. These business provide more than 10,000 trips every day in New York.
It’s possible that the app drivers would end up having to work harder for the same amount of money. When drivers work a greater portion of each hour, the wages they earn per-mile and per-minute decrease. Additionally, the new system would allow for slacking. Since the drivers would be paid $17.22 per hour regardless of how many passengers they transport, they would have the option to decline rides and still collect minimum wage. In response to the report, Uber stated that the minimum wage would ultimately make the service less reliable and available.