Both Uber And Lyft Freeze Hiring Drivers After New York Imposes New Minimum Wage Rule

Uber and Lyft are no longer accepting new ride-hailing drivers in New York City. The Big Apple is one of the most important markets for the rival companies, but the city government has begun to push back against the uncontrolled growth of ride-hailing services with a one-year cap on new vehicle licenses, as well as a law mandating a minimum wage for drivers.

Uber stopped hiring new drivers in New York City on April 1, while Lyft ceased on April 19, reports Politico. In a posting on its website, Uber attributed the hiring freeze to new rules enacted by the Taxi & Limousine Commission (TLC), which regulates for-hire vehicles in New York City. An anonymous source with knowledge of the matter told Politico that Uber was specifically responding to the minimum-wage rule. Lyft stopped hiring drivers for similar reasons, according to Politico.

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PUGPROUD - 5/1/2019 3:08:35 PM

+3 Boost

NY Progressives stifle new jobs once again. Amazon and now Uber...whose next?

TomM - 5/2/2019 6:51:48 PM

+1 Boost

Nope

The problem was NOT political

THe problem was clearly that - after taking out actual expenses - an Uber/etc driver HAS TO MAKE at least the minimum wage - as ALL workers should do. Since expenses are going up with the cost of fuel - any effort to keep the prices down for rides would therefore bring the drivers cut to less than the minimum wage. IF I wanted to hire workers and pay them less than the minimum wage in NYC - where my company has a facility - SO I could make more profit - I could not do it legally. Others should be required to comply with the law. (minimum wage laws are generally supported by all sides in NY)

AS far as Yellow Cabs - a major cost that UBER is not involved in is the need for a Medalion - which once sold for huge dollars - and many still have to pay off loans they have for an item that NYC allowed to become obsolete. THat is why the cost of a yellow cab - the only cab that can be legally HAILED from the street - is so much more than a ride you CALLEd in for in some way - and YES - there are LOTS of Car Services in NYC that are far less expensive than Yellow Cabs - BUT they cannot pick you up unless you called them first.

PUGPROUD - 5/2/2019 9:03:35 PM

+1 Boost

TomM, I'm not sure you are right. Uber drivers are independent contractors not employees. The federal Fair Labor Act does not require that independent contractors receive minimum wages.

mre30 - 5/1/2019 6:01:45 PM

0 Boost

The "gig" is up for the "Gig Economy".

Hopefully the days are ending for companies (Tesla, Uber, Lyft, Snapchat) who pretend to be giants while not operating even close to turning a profit and subsidizing their busiensses with 'OPM' (other people's money).

Selfishly, I hope the Uber and Lyft stock offerings are successful because I really enjoy subsized Uber rides. Uber is throwing so much cash at the NYC market, you can basically get anywhere in Manhattan in an Uber X for $10 to $15 per ride. Uber is now 1/2 as expensive as a yellow cab. #Astonishing