The TLC is proposing to regulate the minimum App companies must pay drivers on every trip. Uber, Lyft, Via, Juno won't be able to cut rates anymore!
This is a first-time protection for App drivers in the country that we won through our City Council campaign!
TLC's yellow and green driver proposals are all from NYTWA's petition!
It's a start. Now we fight for more!
TLC PUBLIC HEARING!
TOMORROW Wednesday, October 3rd
One Bowling Green, Museum of the American Indian
About the TLC App Driver Payment Proposal
The TLC is proposing $1 per mile and 49.5c per minute. No minimum and initial base rate (also called, flag drop) and nothing on out-of-town fares. The TLC expects these fare rates to raise driver net pay by 14%. We disagree.
1) The TLC commissioned report underestimates actual driver expenses by as much as $10,000 per year.
The report assumes an average weekly cost for a vehicle and insurance at $239/week.
For a driver paying $390 a week for a vehicle, the annual difference between their actual expenses and the TLC expenses rate is $7,852. Assuming a 40-hour, 50-week annual work schedule, paid under the TLC's proposed driver pay rates, this driver's net pay, would only be $11.08, not $15, per hour.
2) Gross fares will, on average, remain close to the same as what Uber is already paying drivers per trip.
The 14% raise projected in the report assumes both Pool trips which are affected differently by this formula than non-Pool UberX trips.
TLC commissioned report did not analyze per trip data or separate out Pool trips from non-Pool trips.
The report assumes requiring companies to make up for trips where drivers gross less than a minimum wage standard, something which the TLC's current rule proposal does not require.
Understanding Upfront Pricing and Driver Payments
The TLC's approach allows companies to charge passengers one rate of fare and pay drivers at a different rate of fare for the trip. This is referred to as Upfront Pricing. The practice started in May 2017, just as Uber started charging passengers more, and has left drivers with the lowest percentage of the fare.
The TLC commissioned report did not analyze per trip data, or compare what the passenger paid vs. what the driver received. We did.
NYTWA analyzed 183 UberX fares taken within New York City since 2017 and, in the aggregate, found the following:
1) Current Upfront Pricing fares are 24% higher compared to what Uber charged in 2016
2) The real commission paid by Uber drivers on these fares would be 29.17%
3)The current Upfront Pricing fares are 12% higher than the regulated taxi fare for the same trips.
Passengers are paying more but drivers are earning less.
Here is Our Proposal:
NYTWA proposes that the TLC mandate rates similar to what customers are already being charged by Uber so that drivers can benefit from a real raise, and also apply those rates to the yellow and green taxi meter, so drivers across all sectors can earn more and rise out of poverty.
1) Require App companies use following rates per trip and pay drivers 80% of total:
Initial Drop: $3.30
Distance: $0.60 per 1/5 mile (Or $3.00 per 1 mile)
Time: $0.60 per minute (if applied only to stop/slow time; to be adjusted if applied to whole time)
2) If customer agrees to pay Upfront Pricing (flat fare before trip starts), the driver is entitled to 80% whichever is higher, the Upfront Pricing or fare calculated on driver payment rates
3) Set Minimum Fare so despite meter rate, a driver cannot make below $10 amount on any trip
4) If after getting 80%, the driver is left under TLC established minimum wage (right now, it's $25 gross per hour), then the App company has to pay the rest to the driver
5) Double the meter (similar to Rate 4) on out of town fares
6) Use drivers' maximum expenses, not averages, when calculating potential driver income based on fare proposals
7) Between January - March, study the impact of Congestion Pricing on number of trips and fare revenue and impact of fare raise with these rates for the yellow and green meter so that all drivers can get a raise.
The TLC's approach locks drivers into minimum incomes per fare even when the company's revenue grows.
NYTWA's proposal gives all App drivers a proper raise, prevents the minimum (the floor) from becoming the maximum (the ceiling) of what drivers can earn, lets App driver incomes to grow alongside corporate revenue; and allows for ALL drivers to eventually get a raise.
App driver gross payments would go up by 31%. Drivers would still have a floor so their incomes wouldn't go lower. Yellow and greencab driver fares could go up by 16%.
What We Support That the TLC Is Proposing:
TLC regulation of minimum rates per trip
$1 per passenger shared ride bonus
YELLOW AND GREEN:
Reduce Credit Card fees for lease AND owner-drivers from $11 per shift to $7
Brokers cannot charge a driver the credit card rate for two shifts if they are the only driver
Broker must pay back a driver any insurance claim where the driver paid the for repairs
Garage must pro-rate lease if car is dispatched late; and can pro-rate if car is brought back early
Meter must show total fare end of trip
NYTWA Amendments to Driver Protection Rules
The TLC is also proposing a number of regulations to protect drivers' right to information from the companies, and the TLC's right to data and documents as the regulator. Many are proposals also from NYTWA's April Rulemaking Petition. You can read the amendments here.
In order for ALL drivers to get a raise, we need App rates to be properly regulated. THIS is our chance.
We fought so hard to have the TLC regulate how much drivers are making.
Be there brothers and sisters to bring home our victory: TOMORROW Wednesday, October 3rd, 10am sharp, this time at 1 Bowling Green, the Museum of the American Indian.