Uber is suing the New York City Taxi & Limousine Commission (TLC) approved last month increased fares for ride-hailing apps and taxi drivers amid a post-pandemic driver shortage, rising operating costs and higher inflation. The ride-hailing company is trying to prevent an increase in the price it pays drivers in NYC by December 19.
On November 15, the TLC voted to increase the rate of drivers calling for rides per minute to 7.42% and the rate per mile to 23.93%, a move by the committee aimed at attracting more drivers. more to the roads to serve increasing passengers. request. In its petition, Uber calls the spikes “unprecedented, unsupported spikes,” noting that previous spikes ranged from 1.46% to 5.34%. and “accurately reflect the impact of inflation”.
Uber accused TLC of using unreasonable economic principles to “achieve predetermined results”. The company said the rule would force Uber to spend an additional $21 million to $23 million per month, an expense the company cannot recover. Uber could offset the additional payments by increasing fares for passengers, but the company said that would result in a 10% increase for passengers, which would “irreparably harm the customer.” to Uber’s reputation, undermine goodwill and risk losing customers and businesses forever.”
The ride-hailing giant went on to say that the rule being challenged would harm riders, motorists and the entire ride-sharing industry. Uber accuses TLC of not proposing a solution that balances these risks.
“Rising rates of this magnitude is likely to result in higher passenger fares,” the lawsuit states. “Those higher prices will reduce the number of rides requested through the Uber platform. Fewer rides requested means less earning opportunities for Drivers. The rule challenged could very well have a damaging effect on Drivers’ earnings, undermining the purpose of these regulations.”
Uber asked the court to issue a temporary restraining order and a preliminary injunction to block TLC’s rule implementation pending a decision on Uber’s lawsuit to block it out altogether.
Taxi & Limousine Commissioner David Do said in a statement that the city must “stand behind our workers without traditional job protections.”
“New York City leads the nation in driver protection, and this important rule reflects that fact,” Do said. “We are confident that we have our legal authority to enforce this important rule and we are fighting this case vigorously.”
Uber has challenged past rulings designed to protect gig workers. A California high court last year ruled Proposition 22 — a ballot proposal that passed in 2020 and identified hitchhiking and gig workers as independent contractors, non-employee and therefore ineligible for certain worker protections — is Unconstitutional and unenforceable. Uber’s turn file an appeal disable AB-5, California controversial law regarding the employment status of gig workers, is unconstitutional and prevents its enforcement. This ongoing litigation has bought Uber time by clogging up the legal system so the company can continue to operate without making changes.
