Uber prices increase in NYC Thanks to new minimum wage

Photo: Spencer Platt (Getty)

Uber rides in New York City are becoming more expensive, starting today. The company announced in a blog post Friday that prices will increase in the city due to the recent state and city.

New York City's Taxi and Limousine Commission (TLC) recently issued new driver payment rules for hiking services such as Uber, Lyft, and Juno, ensuring drivers will receive $ 27.86 per hour before spending, or $ 1[ads1]7.22 per hour after expenses. The Commission believes that this rate is on a par with the minimum wage of $ 15 in other industries, as drivers do not get paid time and have to deal with payroll costs, according to the TLC proposal. The proposal also claims that the initiative will increase the driver's salary by $ 9,600 a year.

In addition, Uber mentions a new state overload charge, which means that all passengers have to pay an additional $ 2.75 for trips to Manhattan under 96th Street. The fees will go to the Metropolitan Transportation Authority.

Earlier this week, Juno and Lyft sued separate TLC over the new minimum wage rules, claiming that the rules would make it harder for them to compete with Uber. Lifting and Juno do not reject a minimum wage, but they are concerned about how the city chose the smallest wage figure. The amount is based on "utilization rate", which is calculated from how much time drivers use to drive someone and how much time they spend and waiting for passengers.

Judge in New York State Supreme Court Andrea Masley offered Juno, Lyft and Uber the opportunity on Wednesday to put extra wages in an escrow while waiting for a decision on the case. A Uber spokesperson told Gizmodo that Uber informed TLC and the court today that it will not hold back any of the driver's earnings.

Instead, Uber told his riders that they would increase their prices. The company said that the new "method used to calculate the new driver rooms involves a" roaming charge "where riders pay higher prices to compensate drivers for their time on the road without passengers."

When asked how much "Roaming charge" will be, the Uber spokesman said the price "varies by time and distance, so I don't have a particular figure."

[CNN, Uber]

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