Angela Beltran Tech 01.06.2023 20:Jan PM EST

Court in New York City Denies Uber and Lyft Drivers' Pay Raise

Following the lawsuit that Uber filed against the Taxi and Limousine Commission back in early December, a court in New York City blocked the rate hike that was supposed to raise the pay for uber and Lyft drivers.

Uber and Its Drivers

Uber has been criticized by its employees for its unfair system regarding their pay. The transportation company's spokesperson Josh Gold expressed that drivers deserve to be paid fairly, but in a way that's transparent, consistent, and predictable.

Gold added that the existing rules of the Taxi and Limousine Commission continue to provide for an annual review relating to the inflation rate, which will happen in March. According to Engadget, a pay raise would cost the company $23 million per month.

New York Taxi Workers Alliance executive director Bhairavi Desai released a statement, calling on the Taxi and Limousine Commission to redo the rules so drivers won't have to wait for their pay raised any longer.

She also expressed her disappointment with the cab company for spending millions on the recent lawsuit, emphasizing that drivers were only asking for a measly $1.66 increase for an average trip.

Leading Up to the Denial of a Raise

Back in November, New York City's TLC voted to raise the rates of drivers by 7.42% per minute, and rates per mile would get a 24% increase. The Taxi and Limousine commission stated that the fare hike would make up for the inflated expenses for the company's drivers.

The new rates would mean that a 30-minute drive would cost $2.50 more. This, however, was not implemented due to Uber's request for a temporary restraining order, which was granted by the Manhattan Supreme Court.

Uber justified denying the pay raise by pointing out that the reasoning behind it was flawed. It was based on the effect of inflation on gas prices which has long since gone down. There was also the potential damage to the company's reputation if it was implemented during the holidays.

The rideshare company also pointed out that the hike in fares was too high, which would cost the company $23 million monthly to pay the drivers. The solution to that would be to increase fare hikes as well, which would be bad for business.

Of course, the driver was not too enthusiastic about the restraining order. Drivers claimed that the increase in prices because of inflation is being shouldered by them, therefore further decreasing their earnings.

Desai has also been active when it came to Uber's decision to file the order, saying that they were surprised that the court granted the order. He added that Uber just refused to pay their workers more, as mentioned in The New York Times.

The company then sued New York's TLC to further block the prospect of a price increase. Uber claimed that the increase was dramatic, unprecedented, and unsupported, also that the Commission did not come up with a solution to balance the risks brought by the price hike.