NYC Commission Calls for Ride-Hailing Minimum Wage
Economists from New York City’s New School and the University of California, Berkeley proposed that drivers should be earning $17.22 an hour after expenses, a 22.5% increase based on average pay rates.
In a statement, Uber argued that the wage increase would hurt “riders through substantially increased prices and reduced service; and severely limiting the amount of time existing drivers can access the platform.”
Photo courtesy of Uber.
The New York City Taxi and Limousine Commission issued a report calling for a minimum pay standard for ride-hailing drivers, Consumer Affairs reports.
Economists from New York City’s New School and the University of California, Berkeley proposed that drivers should be earning $17.22 an hour after expenses, a 22.5% increase based on average pay rates. According to the study, 85% of New York City drivers make less than the group’s suggested minimum wage. Additionally, 60% of ride-hailing drivers work full-time.
In a statement, Uber argued that the wage increase would hurt “riders through substantially increased prices and reduced service; and severely limiting the amount of time existing drivers can access the platform.”
However, the study found that if drivers were to receive the suggested raise, fares would increase about 3% to 5%, while wait times would extend by 12 to 15 seconds.
Related: Uber Disputes MIT Wage Study
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