Uber has started locking down New York City drivers out of its app during periods of low demand as the ride-hailing services continue to protest against the city's six-year-old wage rule.
The lockouts, first implemented last month, are noted to be in response to a city wage policy in 2019 requiring ride-hailing services to pay their drivers even during idle time, Bloomberg reported.
(Photo : Justin Sullivan/Getty Images)
Several drivers reported that the new app lockouts have since impacted their earnings, going from $300 - $400 per shift to as low as $170 for every operation.
The app lockdown is the latest string of operation cutdowns Uber has since rolled out amid NYC's sweeping changes to increase its delivery and ride-hailing drivers' wages.
The company has paused new driver registration in the city and started requiring applying drivers to go through a waitlist process rather than being employed immediately into its service.
Other ride-hailing services have since threatened to implement drastic actions to convince NYC's Taxi and Limousine Commission to revert the rule.
Also Read: DoorDash Gets Rid of Upfront Tipping in NYC After Wage Increase
Lyft Threatens to Lock Down NYC Drivers Too
Following Uber's example, Lyft has also begun threatening to lock out drivers from its app as the two rivaling companies blame each other and the TLC over the s
Both businesses claim such rules, which mandate them to pay drivers more during idle time since it is qualified as a non-passenger period, would hurt operations and the drivers' overall earnings.
According to Bloomberg, the ride-hailing services have been noted for urging drivers to lobby against the policy themselves in what NYC driver union groups accused of "gaming the system."
Uber, Lyft Faces Wage Increase Laws Across Other States
If Uber and Lyft's operation cutdowns go unhindered in New York City, similar sweeping changes are expected to soon appear in other states pushing for wage increases as well.
The companies previously threatened to leave the whole of Minnesota in protest against Minneapolis' recent wage increase for ride-hailing services.
Uber maintained such laws "may hurt riders and drivers alike," but claimed it would still operate in the city and the state after brokering an agreement with the governor.
Related Article: Uber, Lyft Will Stay in Minnesota Despite Wage Increase Dispute
