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New York City Votes On Significant Uber Restrictions, Minimum Wage For Drivers

Discussion in 'News' started by just_me, Aug 8, 2018.

  1. just_me


    The New York City Council is voting on Wednesday on a series of measures which would significantly harm ride-hailing services such as Uber and Lyft, after a handful of bills were formally presented to the City Council last Wednesday.

    The bills, supported by Mayor Bill de Blasio and Council Speaker Corey Johnson, are widely expected to pass - and include a one-year cap on new taxis while the city studies the booming industry. The legislation would also allow New York City to set a minimum pay rate for drivers.


    “This legislative package we believe will bring fairness to an industry experiencing an upheaval,” Speaker Corey Johnson told The Wall Street Journal. “We think it will reduce congestion and help drivers.”

    In June, we noted the epidemic of New York cab driver suicides, as lifelong drivers have watched their retirements vanish as the value of a once-coveted taxi medallion has cratered, and the ultra-competitive ride-sharing services have kept driver wages low.

    In the past five years, sale prices of taxi medallions, a license to pick up street hails in Manhattan, have plummeted from more than $1 million to less than $200,000. -WSJ

    In May, taxi driver Yu Mein Chow, a 56-year-old immigrant living in Queens, was found dead - floating down the East River near the Brooklyn Bridge. Seven years ago, Chow financed a $700,000 taxi medallion that allowed him to operate a cab throughout the city. Shortly after, he realized with the introduction of ridesharing apps that his ability to service the debt was unsustainable; only instead of declaring bankruptcy, he chose to end his life.


    The ride-hailing companies argue that their businesses add value to the community.

    “City Council’s proposals would bring us back to an era of struggling to get a ride, particularly for those in communities of color and outer boroughs,” said Lyft spokesman Adrian Durbin, who urged council members to delay the vote so that drivers and riders could have more time to comment.

    “A 12-month pause on new for-hire vehicle licenses will leave New Yorkers stranded while doing nothing to prevent congestion, fix the subways, and help struggling taxi medallion owners,” said a spokeswoman for Uber.


    Following an unsuccessful 2015 bid by de Blasio to cap ride-hailing companies in 2015, the services have ballooned in popularity throughout the city. As the Journal notes, "At that time, there were 25,000 ride-hailing vehicles on the streets, according to the Taxi and Limousine Commission. Today, there are more than 80,000 such vehicles. They dwarf the roughly 30,000 livery and traditional black cars, 13,587 yellow taxis and 2,300 green taxis."

    Uber and Lyft have also been blamed for adding to New York's notorious road congestion.

    Bhairavi Desai, executive director of the New York Taxi Workers Alliance, said Wednesday’s vote “sends a message of hope and solidarity to a workforce that has struggled in isolation for too long.”

    Ride-hailing companies say they provide a service to people traditionally neglected by the taxi industry, such as those in the outer boroughs and people of color who are sometimes avoided by cabdrivers. They add that they also provide an alternative for commuters who are regularly let down by the city’s subway and bus systems.

    Lead sponsor of the minimum wage bill, Councilman Brad Lander, appeared at a Tuesday rally in support of the legislation, saying that the package of bills "puts New York City on a path to sensible regulation of for-hire vehicles."

  2. Uber's Guber

    Uber's Guber

    United States
    1 million dollars for a “taxi medallion.”
    This corrupted industry was way out of control long before Uber/Lyft ever existed.
  3. Mole


    California needs to start regulations on rideshare the roads are clogged with drivers.
    uberdriverfornow and mrpjfresh like this.
  4. BurgerTiime


    Oh no!! UBER’s dead, lol!
  5. TwoFiddyMile


    Well it's 17:03 in NYC. There's no city council member left downtown now, they're all headed to their secret crack houses and bordellos in Brooklyn and The Bronx.
    HackensteinHackenstein do you know how this vote went down?
    uberdriverfornow likes this.
  6. kdyrpr


  7. glenga75


    New York
  8. mikes424


    Be careful what you wish for. Uber and Lyft are not going to pay for you just sitting with the app on. Thus, you will be required to accept all, or a high percentage, of pings. Bottom line you will lose your independent contractor status and freedom to choose your work hours.

    A better solution would be to limit the number of cars on line and to set a higher pay rate for both miles and time which would make costs more competitive for taxis.
    Michael - Cleveland likes this.
  9. grams777

    grams777 Moderator Author

    Another of the bills requires the TLC to set minimum pay rates for drivers at large firms, and grants the TLC the right to do the same for smaller firms. A study conducted by the TLC suggested drivers be paid $17.22 an hour, before tax and the cost of vehicle maintenance, but the study was not binding​
    Michael - Cleveland likes this.
  10. Chickens are coming home. Uber and Lyft's greed finally catching up to it. All the less than minimum wage ants funding this psychotic "Rides for nothing" experiment is coming to an end.

    Other big cities will follow soon enough.
  11. JimKE


    I agree with both of Mike's points, but we don't know what the details of this are -- and the devil is in the details.

    [The only actual detail we have is that Councilman Diaz' price was $12,000. That's a 20% markup from what our Miami Commissioners get, so he did OK. Of course, that's only the public record part of his price.]

    It remains to be seen how this is going to help taxi drivers. A temporary pause in hiring new Uber drivers is not going to increase the value of their medallions. And, as I said in one of the other threads, there are an awful lot of Uber pax who never were, and never will be, taxi pax. Taxis are just too expensive and too inconvenient for them. They'll ride buses.

    If the future follows history, the most likely beneficiaries of this are the City Council members. This gives them 12 months for a bidding war between the taxi industry and rideshare. Should be a nice payoff.

    Call me a cynic, but I'm skeptical about any of this helping any of the little guys -- taxi or rideshare.
    uberdriverfornow likes this.
  12. Be careful what you wish for - what is to stop Uber from permanently deactivating drivers to reduce the total number for pay minimum wage to?
    Kinda tough to make car payments with no hours...
  13. uberdriverfornow



    In no way does this harm Uber or Lyft. Same old scare tactics. "The sky is falling, the sky is falling!!"

  14. jocker12


    “We’ve been working so hard to level the playing field for the taxi industry in the city of New York,” Council Member Ydanis Rodriguez, representing parts of northern Manhattan, told the Committee on For-Hire Vehicles as they conducted a preliminary vote on Wednesday morning. “Today we’re making history by voting on a package of legislation that will continue to do that.”

    Less than half of TNC trips would have been made in taxis or in private cars, according to a 2018 commuter survey by the New York City DOT. Fully 50 percent of them would have been made on public transportation—strong evidence that ride-hailing has worsened congestion alongside population and economic growth. An expanding body of research points to similar effects in several major U.S. cities, including Washington, D.C., Seattle, San Francisco, Los Angeles, Boston, and Chicago.

    While the new regulations would be a clear win for existing drivers, it’s less certain that capping vehicles would rein in the congestion and transit ridership draw-down effects of ride-hailing. Uber argues that, because the regulations would only affect new vehicles licensed forhigh-volume ride services, drivers with multiple existing licenses will rush to capitalize on their new value by using their cars more frequently. Uber plans to contact such drivers to encourage this, a company spokesperson said.

    Instead of the council’s proposed regulations, both Uber and Lyft support universal congestion pricing—that is, a fee on both personally owned cars and for-hire vehicles that enter busy streets at peak hours. That would disincentivize single-occupancy vehicle trips and encourage carpooling—the key to reducing congestion long-term, both companies say. It would also be in line with their business strategies.

    Michael - Cleveland and Demon like this.
  15. glenga75


    New York
    Be careful what you wish what. Let’s wait for that too. If I will loose my status of private contractor I want my 5 sick days and I won’t my vacations. Tell to your bosses Mike.
  16. I'm okay with that. Employee status = minimum wage guaranteed, with a variety of other benefits. Of course, this is as long as we have the ability to make more than minimum wage, via surges, etc. Regardless, this will likely hurt my living potential as I am a driver on Long Island.
  17. UBERPROcolorado


    U/L will not take a loss. The IPO is to vital to Uber and Lyft will follow Uber like a puppy.

    The drivers will loose in the end.

    As for a minimum wage and quasi employee status. IF after years of appeals, law suits and face time with Trump....it happens. Drivers will become slaves. As for the $17 + hourly. Lol. I net better than $17 hour (including tips) and still have my freedom.

    Moral of the story....liberal NYC is going to find that Uber is more powerfull than they thought. And much smarter.

    Just saying
  18. glenga75


    New York
    This is my opinion that I have created with the cap on board
    “ The app companies will bring this business to the point that whoever has a personal car walks away from this job and will get substituted with a rental car. Of course there are thousands of broke drivers that will accept to be paid hourly working with a rental. Till automated cars come around. Math done. It took U/L few years to reach this point and it will take them couple of years to monopolize the industry with their own cars.
  19. JimKE



    I don't care who they are...
    I don't care what party they belong to...
    I don't care whether they are liberal or conservative...
    I don't care what office they hold...
    I don't care where they are located...

    They are lying.
    mikes424, bsliv and UBERPROcolorado like this.
  20. jgiun1


    Can someone tell me what it means if your driver and your one of the cap casualties?

    I mean everyone getting excited about a cap of drivers, but what about the drivers who are screwed with the cap, like earning money.

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