TLC approves historic pay rules for app-based drivers

[brooklynite]

Source: Crain's New York Business

The Taxi and Limousine Commission made history on Tuesday morning when its commissioners voted to set the first minimum pay-rate in the nation for app-based drivers.

Driver groups are declaring victory on—and claiming credit for the win—while Uber, Lyft and Juno found a lot to complain about. Only the pooled-ride service Via, which already pays its drivers better than minimum wage, applauded the changes.

The rules, which will go into effect in 30 days, call for minimum gross pay of $26.51 per hour, which will boil down to $17.22 after expenses. That is the equivalent for an independent contractor of $15 per hour, including paid sick leave and payroll taxes.

Most drivers, a TLC-commissioned study found, earn about $11.90 an hour. On an annual basis, the new rules will mean a raise of more than $9,000.

Read more: https://www.crainsnewyork.com/transportation/tlc-approves-historic-pay-rules-app-based-drivers

[left-of-center2012]

1. This only affects New York City

Will have no effect on my Uber/Lyft rides here in New Mexico.

[George II]

2. I kind of wondered how the city was handling Uber, Lyft, etc....

I'm sure they have yellow cab drivers up in arms. I don't know if those others are licensed, but a taxi medallion costs quite a bit - four or five years ago they were up to $1.5 million, now down to a couple of hundred thousand thanks to Uber (back 30+ years ago, during the energy crisis owners were turning them in and new owners could get one for free!).

Forcing the pay of Uber/Lyft up will probably result in fare increases making yellow cabs more competitive.

[cstanleytech]

3. Why not simply require that any drivers that charge fairs to passengers have to buy

a medallion and have the price of the medallions fluctuate according to supply and demand?

[George II]

4. The medallion system was instituted to regulate the number of cabs on the street....

...(this was long before the new services, gypsy cabs, and limousine services)

The medallion system was established during/after the depression because there was a glut of cabs (it was a relatively easy, decent paying job and they didn't answer to anyone but themselves) and they were all suffering. The city established the allowable number of medallions somewhere around 15,000, and that number hasn't changed much since.

The only vehicles permitted to pick up passengers on the street, i.e., "hailed", are the yellow cabs, although now there are green medallion cabs which are permitted to act like yellow cabs but in limited areas of the city.

There is no set price for the medallions, particularly since there haven't been any issued in decades. Some are passed down from generation to generation, some have shown up in wills, and many of those that are sold are at auction. The reason they're so valuable is that the number has been fixed and medallion cabs have little or no restrictions on picking up fares - all the other services are prohibited from picking up passengers, they get their passengers via a dispatcher, people who call up for a car.