Despite Uber, Lyft, and Mayor Eric Adams’ promise to end the practice of arbitrary app lockouts by Labor Day, drivers have continued to face disruptions, prompting New York City Comptroller Brad Lander to step in.
Lander sent a letter today to the New York City Taxi and Limousine Commission (TLC) formally requesting lockout data from the agency to determine if the apps are manipulating data to avoid paying drivers the city’s minimum pay rate for rideshare drivers.
As Documented previously reported, the rideshare apps have continued to lock out drivers from the apps mid-shift in an effort to reduce the amount of money they would have to pay drivers while they wait between rides.
Uber began locking out drivers last June in response to the city’s rule that mandated rideshare apps pay drivers a minimum rate of $17.22 per hour for the time they wait between trips and the time spent driving a passenger, otherwise known as the utilization rate.
To determine an individual driver’s utilization rate, the TLC divides the amount of time a driver spends with a passenger by the total amount of time that a driver is available to accept a new fare. If a driver has to wait between trips, Uber and Lyft are required to pay that driver the mandated minimum.
Also Read: Uber Still Locks Drivers Out Of The App Despite NYC Deal
But Lander suspects that to circumnavigate the rule, both Uber and Lyft lock out drivers to reduce the number of drivers they would be required to pay the minimum rate. This month, an investigation by Bloomberg also found that in New York City, Uber and Lyft artificially inflated their utilization rate through lockouts and have collectively cheated drivers out of earning over $1 billion.
“There are serious concerns that Uber and Lyft may be using driver lockouts to artificially inflate utilization rates ahead of the 2024 average utilization rate review, which would impact their compliance with the City’s minimum pay requirements for drivers,” Lander writes in his letter to the TLC. “If true, this practice could have significant implications for the livelihoods of drivers who rely on these platforms to support their families.”
Lander calls for the TLC to hand over all data that the agency uses to calculate monthly utilization rates, driver income data, and information on measures taken by the TLC to ensure that reported utilization rates are accurate and reflect the actual experiences of drivers. Additionally, the comptroller is calling for the TLC to share any communication between them and Uber and Lyft regarding the mayor’s deal to end lockouts by Labor Day.
“I was proud to sponsor New York City’s first-in-the-country minimum pay legislation to make sure for-hire vehicle drivers can earn a living wage — and we won’t stand by as Uber and Lyft dodge our regulations with cruel, arbitrary lock-outs that exploit drivers and pad their profits,” said Lander in a statement released today.
“We share the concerns raised by NYTWA and the Comptroller. The harmful lockouts we’ve recently seen happened because multibillion-dollar companies intentionally exploited loopholes in our minimum pay rules to avoid paying hardworking drivers more,” said David Do, chair and commissioner of the TLC, in a statement to Documented. “This defies the intention of our rules and the underlying Local Law, so we are in the process of amending and tightening those rules. Drivers are more than what Uber and Lyft refer to as ‘supply’: they are human beings who deserve the protections our city intended.”
Also Read: Uber and Lyft Drivers Fight Back Against Accounts Being Randomly Deactivated
Bhairavi Desai, executive director and co-founder of the New York Taxi Workers Alliance (NYTWA), has long been critical of the lockouts. After months of direct actions across the city, Desai said they are planning a 24-hour strike on Oct. 23 to demand the end of lockouts.
She said Lander’s letter has strengthened their movement.
“We won’t stand for it, and after months of protest, we are no longer alone,” she said. “We have the comptroller to demand accountability by the TLC and do right by the drivers.”
Update October 18, 2024: This story has been updated to include commentary from Chair and Commissioner of the TLC, David Do.
