NYC Passes Minimum Pay Wage For Uber And Lyft Drivers

Engadget reports that App-based contract drivers will receive $17.22 per hour going forward.

Uber's director of public affairs, Jason Post, released a statement ahead of today's vote:

"Uber supports efforts to ensure that full-time drivers in NYC - whether driving with taxi, limo or Uber - are able to make a living wage, without harming outer borough riders who have been ignored by yellow taxi and underserved by mass transit.

The TLC's implementation of the City Council's legislation to increase driver earnings will lead to higher than necessary fare increases for riders while missing an opportunity to immediately reduce congestion in Manhattan's central business district.

The TLC's rules does not take into account incentives or bonuses forcing companies to raise rates even higher. Companies use incentives and bonuses as part of driver earnings to ensure reliability citywide by providing a monetary incentive to drivers to complete trips in areas that need them the most (such as outside of Manhattan).

In addition, the rules miss an opportunity to immediately deal with congestion in Manhattan's central business district. A recent TLC study authored by economists James Parrott and Michael Reich describes a formula that would financially punish companies who have low utilization rates. Instead, the TLC is choosing the adopt an industry-wide utilization rate that does not hold bases accountable for keeping cars full with paying passengers."

Should there be a minimum wage for app-based drivers? Aren't they basically piece workers? The system should self-regulate. If it is not profitable to drive for an app-based company, the app-based companies will fail. If drivers start leaving the profession because they can make more money elsewhere, app-based companies will adjust the percentages paid. A minimum wage makes no sense to me. That said, I know I am about to get schooled. Bring it! As always, your thoughts and comments are both welcome and strongly encouraged.

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Shelly Palmer is Fox 5 New York's On-air Tech Expert (WNYW-TV) and the host of Fox Television's monthly show Shelly Palmer Digital Living. He also hosts United Stations Radio Network's, ...

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