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Ordering a uber or lift in new york city just got pricier.
In August, the City Council voted for a minimum amount for independent contractors running for riders such as Uber, Lift, Via and Juno. The new city law will guarantee drivers a rate of $ 17.22 per hour after spending, as the supporters say is a profitable pay.
Now is the time for the new prices to kick in. With higher salaries, Uber riders say expect to see higher prices. A new surcharge to fund the Metropolitan Transportation Authority (MTA) will make any trips even more expensive.
Uber says that "to account for the consequences of this new rule, we will increase the price of Uber tours in NYC."
Lyft and Juno separate themselves over the NYC Taxi & Limousine Commission roll-out of the new wage growth, both arguing that it favors Uber.
A judge ruled in Lyft's favor Friday and offered to stay off – but Lyft (and other tours' apps that do not want to pay the minimum wage) must meanwhile pay to a bank account. The next hearing is on March 18th.
Lifting will not comply with the Commission's new pay rules, but explained that it will continue to increase driver's pay in NYC, with its own formula. For customers this means that the prices for Lift rides will also probably rise.
Join us to fight this injustice, text PAY to 64336 to sign our petition to stop this lawsuit! pic.twitter.com/l7y7YqL65B
– IDG (@DrivingGuild) February 1, 2019
In a statement, Lyft said: "Drivers should not suffer while working to the right TLC's errors , so we immediately get paid to us as we continue our fight in court. "
Via, a NYC-based carpooling app, said it is not affected by the new driver payment rules.
"The vast majority of drivers on the Via platform already earn more than the city's new minimum wage," the company said in a statement.
The independent driver source, a union representing app-based drivers in NYC, is furious in the lawsuits. "This would be a nightmare for drivers desperately waiting for this lift," a group spokesman said in a statement.
To make everything more complicated, a separate New York State congestion charge came into force on Friday. It gives an extra $ 2.75 for trips to Manhattan (75 cents for a shared trip). The additional fee goes all the way to MTA – not to drivers for Uber and other companies.
For a company like Via, riders still have to pay more for rides in Manhattan.
Uber did math and with all city and state taxes, taxes and fees, the average New York City UberX trip would cost $ 22. More than 20 percent, or about $ 4.50, of it will go against NYC -specific costs.
Certainly, the worsening subway looks more appealing.