Uber is suing the New York City Taxi and Limousine Commission (TLC) which has approved a rate increase for private transport applications 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 fees it must pay drivers in New York City before December 19.
The November 15, the TLC voted to increase hail driver rates per minute by 7,42% and mileage rates by 23,93%, a commission measure intended to bring more drivers onto the roads to cater to the growing number of passengers. ask for. At his request, Uber He called the increases "dramatic, unprecedented and unsupported increases," noting that previous rate increases ranged from 1,46% to 5,34% and "accurately reflected the impact of inflation."
Uber accused the TLC of using unsound economic principles to “achieve a predetermined result”. The company said the rule would require Uber to spend between $21 million and an additional $23 million per month, a cost from which the company could not recover. Uber could alternatively offset the extra payments by increasing passenger fares, but the company said that would result in a 10% increase for passengers, which “would irreparably damage the reputation of Uber, you would hurt goodwill and risk losing business and customers permanently.”
The rideshare giant went on to say that the challenged rule will harm passengers, drivers, and the rideshare industry as a whole. Uber accused the TLC of not proposing a solution to balance these risks.
“It is very likely that a fare increase of this magnitude will result in higher fares for passengers”, the lawsuit reads. “Those higher fares will, in turn, reduce the number of rides requested through the Uber platform. Fewer rides requested means fewer opportunities for Drivers to earn fares. The challenged rule could very well have the effect of damaging driver earnings, undermining the purpose of these regulations."
Uber asked the court to issue a temporary restraining order and a preliminary injunction to block implementation of the TLC rule until a decision is made on Uber's request to block it entirely.
The commissioner of taxis and limousines, David Do, said in a statement that the city must “support our workers without traditional labor protections.”
“New York City leads the nation in protecting drivers, and this important rule reflects that reality,” Do said. "We are confident that we are within our legal authority to implement this important rule, and we are vigorously fighting this lawsuit."
Uber it has challenged rulings in the past that are designed to protect temporary workers. Last year, a California superior court ruled that Proposition 22, a ballot measure that passed in 2020 that defines transportation and concert service workers as independent contractors, not employees, and therefore ineligible for certain labor protections, was unconstitutional and unenforceable. Uber in turn filed an appeal to invalidate AB-5, California's controversial employment status law for temporary workers, as unconstitutional and block its enforcement. This continuous discharge in the courts gives him time to Uber by obstructing the legal system so that the company can continue to operate without making changes.
, que ha aprobado un aumento de tarifas para las aplicaciones de transporte privado y los taxistas en medio de una escasez de conductores posterior a la pandemia, el aumento de los costos operativos y una inflación más alta. La compañía de servicios de transporte está tratando de evitar un aumento en las tarifas que debe pagar a los conductores en la ciudad de Nueva York antes del 19 de diciembre.){kind=link}