Uber drivers were set to implement rate hikes on December 19th, which was voted on by the Taxi and Limousine Commission (TLC) in New York City. However, Uber requested a temporary restraining order on the increase, which the Manhattan Supreme Court granted.
Why Was It Postponed?
Uber claimed that TLC's price increase used flimsy calculations to lock in temporarily inflated gas prices. The company also said that a significant fare hike before the holidays would damage Uber's reputation, as well as risk losing customers permanently.
TLC responded by acknowledging the price increase with Uber's services over the years, pointing out that they charged 37% more than they did three years ago. The commission also claimed that Uber kept the extra they earned instead of giving them to their drivers.
According to Engadget, the lawsuit implies that extra costs due to economic factors would be shouldered by the drivers, all while suggesting that raising worker compensation could be bad for business.
The rideshare company also said that the price hike was too high and that Uber would spend an additional $23 million per month just to pay its drivers. To compensate for the loss, they would have to increase fare prices by 10%, which would drive customers away.
Read also: Uber CEO Khosrowshahi: Hiring Now Treated as 'Privilege' - Cost Cutting Measures To Be In Place?
The Drivers' Side
Independent Driver's Guild president Brendan Sexton said that what Uber did was a "nasty stunt," especially since the holidays are right around the corner. He also mentioned that drivers who make the service work are stuck on shouldering the increasing prices on their own.
Sexton claims that they fought hard for the rate hikes that will help 80,000 rideshare drivers who keep the city moving and that they will not let a billion-dollar corporation take that victory away from them.
The head of the New York Taxi Workers Alliance, Bhairavi Desai, said that they were shocked that the court granted the temporary restraining order, according to The New York Times. Desai added that Uber just doesn't want to have to pay their workers more.
TLC's chairman David Do said that they would aggressively defend the standard for drivers. Do also expressed his disappointment for the tens of thousands of drivers who would bare the rising costs of inflation without the help of the company they work for.
Md Azizul Haque has driven for Uber and Lyft for five years, and the fare hike would've helped him not only with the cost of living but also the maintenance that a car requires. Ibrahima Gory, also a taxi driver, said that the company doesn't give them what they deserve.
The increase in pay rates would've increased the price per minute by seven percent and the price per mile by 16 percent. It's also the first time that yellow cab fares saw an increase in ten years, which would raise the driver's earnings by more than 30%.
The Taxi and Limousine Commission aims to fight the temporary restraining order and is already appealing it. The hearing is scheduled to occur on January 31, 2023.
