Uber is suing New York City’s Taxi and Limousine Commission (TLC). approved last month Ride-hailing apps and taxi drivers will raise prices amid post-pandemic driver shortages, rising operating costs, and rising inflation. Ride-hailing companies are trying to block a rate increase that must be paid to drivers in New York City by December 19th.
On November 15th, TLC decided to increase the per-minute fee for ride-hailing drivers by 7.42% and the per-mile fee by 23.93%. demand. In the petition, Uber called the price hike a “dramatic, unprecedented, and unsupported price increase”, noting that previous price hikes he said ranged from 1.46% to 5.34%, “precisely tracking the impact of inflation.” It was reflected in the
Uber accused TLC of using unsound economic principles to “achieve its intended results.” According to the company, the rule would force Uber to spend an additional $23 million from his $21 million monthly bill, making recovery from this cost impossible. Alternatively, Uber could offset the additional payment by raising the price of the trip, but that would increase the price of the trip by 10% and “irrevocably damage Uber’s reputation and You risk damaging your reputation and permanently losing business and customers,” the company said.
The ride hail giant went on to say that the contested rules would harm passengers, drivers and the ride-sharing industry at large. I accused him of not proposing.
“A fare increase of this magnitude will very likely lead to higher rider fees,” reads the lawsuit. Fewer dispatches mean less opportunity for drivers to earn a toll.A challenged rule would very likely have a negative impact on drivers’ income and defeat the purpose of these regulations.
Uber asks the court to issue a temporary injunction and interim injunction to block enforcement pending a decision on Uber’s petition to fully block enforcement of TLC’s rules. I was.
Taxi and Limousine Commissioner David Do said in a statement that the city needs to “support workers without traditional employment protections.”
“New York City leads the country in driver protection, and this important rule reflects that reality,” Do said. “We believe we are within our legal authority to enforce this important rule and are working vigorously on this case.”
Uber has in the past challenged rulings aimed at protecting gig workers. California Superior Court last year voted Proposition 22, a ballot proposal passed in 2020, that defines ride-hailing and gig workers as independent contractors rather than employees and therefore eligible for certain labor protections. decided not to). unconstitutional and unenforceable. Then Uber appealed Disable AB-5 in California controversial law Make gig worker employment unconstitutional and block its enforcement. This constant courtroom volley buys Uber time by clogging the legal system, allowing the company to continue operating without change.
