New York City’s rideshare regulator has accused Uber Technologies Inc. and Lyft Inc. of disseminating “disinformation” in communications to drivers and riders regarding proposed regulations that would provide drivers with an approximate 6% pay increase. The NYC Taxi and Limousine Commission (TLC), which oversees yellow cabs and rideshare vehicles, criticized the companies in posts on social media platforms in response to their recent email campaigns. Uber and Lyft are encouraging their drivers and customers to contact the commission to oppose the proposal, which is scheduled for discussion at a public hearing on February 5.
The city aims to amend its minimum pay regulations to prevent Uber and Lyft from deactivating drivers from their apps, a practice the companies employed last summer to reduce drivers’ recorded working hours. This tactic allowed them to exploit the city’s pay regulations and save millions in future compensation, as revealed by a Bloomberg investigation last October.
Uber has opposed the new regulations, having previously petitioned the TLC to reduce driver pay in one of its largest U.S. markets. A spokesperson for the company indicated earlier this month that they are exploring all options, including potential legal action, to contest the proposal. In an email titled “Tell the TLC Not to Force You Offline” sent to drivers, Uber warned that if the new rules are enacted, it may stop dispatching vehicles older than five years. The message urged drivers to ask the TLC to reconsider the rule, emphasizing that it could compel them to purchase new vehicles every five years.
Uber’s argument is based on the premise that the TLC’s rationale for increasing rates assumes that a vehicle used for rideshare services would be fully depreciated after five years, resulting in minimal resale value. The TLC’s proposed 6.1% pay increase considers the costs associated with maintaining or replacing a vehicle over five years, but it does not mandate that drivers must actually replace their cars.
Uber spokesperson Josh Gold stated, “We respectfully disagree with the TLC’s characterization of our message to drivers. If rates are intended to cover newer cars, riders should expect newer vehicles. We encourage the TLC to reconsider its approach and engage with drivers who depend on their vehicles for more than five years to earn a living.”
The New York Taxi Workers Alliance, representing over 28,000 drivers, informed its members via text that Uber is “trying to trick drivers into testifying against your own raise.” Zubin Soleimany, an attorney with the alliance, described Uber’s actions as “grasping at straws” to undermine driver pay, labeling the claims as “completely false and cynical.”
In a separate communication to customers, Lyft stated that the city’s proposed regulations would lead to “more fare hikes” and make rideshare services “needlessly expensive.”
