New York City – This increase is the second granted to them in 2023 and represents a total of 8.78% compared to last year’s pay rates.
TLC’s unanimous vote was greeted with applause from drivers, who have been demanding fair compensation for higher vehicle maintenance costs and other expenses. Uber, for its part, said in a statement that the amount was more “reasonable” than a previous increase they had opposed.
This wage increase comes after a long struggle by drivers, who have organized strikes and demonstrations demanding fair pay for their work.
Bhairavi Desai, director of the Taxi Workers Alliance, welcomed the news in a statement, saying that “today, after three successful strikes, we can celebrate knowing that we took back a raise that belonged to the drivers and we did so by reminding the companies that the drivers are organized and can beat them.”
The new fee will require a minimum payment of $26.76 for drivers for an average trip of 7.5 miles that takes 30 minutes, The New York Times has calculated.
This wage increase is intended to offset higher vehicle maintenance costs and other expenses for drivers, who are considered by app companies to be independent contractors and are responsible for vehicle maintenance, fuel payments and other regulatory costs.
Uber’s popularity has soared since it arrived in New York 12 years ago. TLC data indicates that there were a daily average of 52,000 for-hire vehicles on city streets in December, compared to just 7,000 yellow cabs.
With this new measure, Uber and Lyft drivers will be able to continue offering a quality service without being required to sacrifice excessive wages.