🔊 NYC TLC Hearing On For-Hire Transportation Industry - Quick Summary 🚘
Quick summary of NYC TLC hearing focused on NYC non-yellow cab for-hire transport industry. IDG leaders & TLC drivers want more protections from "commission caps" to "lockouts"
📽️ Click here for a recording of TODAY’S hearing
For our piece on yesterday's TLC hearing, focused on the NYC yellow cab 🚕 industry, please see below.
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️
Day Two of the NYC Taxi & Limousine Commission (TLC) hearings focused on the non-yellow cab for-hire transportation industry. There were some common themes in the ~1.5 hours of testimony. I (Dawood Mian) testified, as I did yesterday (each speaker was given two minutes, so had to make it specific and short). Below is our quick summary of today’s TLC hearing below. We note some common themes and notable statements for those who couldn't attend.
Before we get into the main testimony, acting TLC Chair Commissioner Ryan Wanttaja (soon to be succeeded by TLC Chair-elect David Do) did not mince his words (⏰ 05:47 in recording) as it related to Uber’s & Lyft's claims around impacts a utilization rate would have on App “lockouts”.
“So, when a company tells you that if TLC starts calculating utilization rates again, they will have to cut off your access to the app…what they are saying is that they are choosing to lock you out now and pay you less in the future. That's it. And, to be clear we are open to adjustments to all of this...” - acting TLC Chair Commissioner Ryan Wanttaja
⏱️ Quick Summary
If yesterday, as we noted, was about the New York Taxi Workers Alliance (NYTWA) 🚕, today was all about the Independent Drivers Guild (IDG) and their influence in the non-yellow cab NYC for-hire transport industry 🙋🏿🙋🙋♀️🙋🏾🙋🏻. That being said, NYTWA representatives still spoke at today's hearing and made noteworthy contributions.
🔒 Pushback on App “Lockouts”
This was probably one of the main discussion points of the testimony. Many TLC drivers were essentially against App “lockouts” (vs. being against utilization rates). However, if utilization rates related to the driver minimum pay formula, caused App lockouts, or the inability for a driver to access Uber and Lyft freely, that would not be viewed favorably. Most drivers highly value a flexible work schedule.
The only real counterarguments related to prioritizing full-time drivers to part-time drivers. That being said, consensus was for a solution that would not result in App lockouts, but ensure minimum pay standards were met.
Examples at⏰ 09:55, 13:27, 14:20, 20:00, 26:15, 39:40, 43:40, 1:04:00, 1:06:22, 1:08:25, 1:10:50, 1:14:00, 1:20:45, 1:23:37 in recording
“Full-timer” Counterargument(s) at 22:20, 23:34, 1:39:30 in recording
💰 Leasing Costs & “One Driver, One Plate”
There were many who testified against the (1) high cost of leasing a TLC-plated vehicle and/or (2) inability for a TLC driver, who is currently leasing a car, to acquire their own FHV license.
The majority of the testimony thought fleet companies were overcharging (~$400 per week was often quoted). I gave testimony that was from a fleet owner’s perspective, $400 per week rates included many expenses from insurance to maintenance. HOWEVER, I was in favor of FHV lease caps (similar to yellow cab industry). In my written testimony, I also thought there should be a pathway for a full-time committed NYC TLC driver to eventually acquire their own TLC plate (FHV license).
As I mentioned in yesterday's TLC hearing, the City’s debt guarantee on taxi medallions (plus medallion values) would need to be taken into consideration before lifting the FHV License Pause (aka TLC Plate Cap).
Examples⏰ 10:20, 25:14, 33:26, 53:25, 59:15, 1:04:45, 1:15:20, 1:22:15, 1:25:30, 1:29:55, 1:36:30 (me 👀!), 1:40:10 in recording
Counterargument(s) at ⏰ 1:06:05, 1:36:30 (me 👀!), 1:39:05 in recording
🧢 Demand for a 10% App “Commission Cap”
A cap on the fees (“Commission Cap”) Uber and/or Lyft could charge TLC drivers was mentioned several times during testimony.
Examples at⏰ 12:40, 25:29, 27:50, 48:40, 56:15, 1:03:44, 1:07:10, 1:11:15, 1:17:40, 1:26:30 (argues for 15% commission cap), 1:28:35, 1:32:30, 1:35:05 in recording
🛑 Limit New TLC Drivers Licenses
Several people testified that NYC TLC driver licenses should be capped, until the market stabilized.
There was one instance of notable pushback, where a TLC driver believed it would be unfair to NOT allow new drivers into the industry.
Examples at⏰ 09:05, 13:38, 43:45, 1:09:35, 1:11:33 in recording
Counterargument at ⏰ 30:06 in recording
⛽ Impact of Inflation
Similar to yesterday's hearing, many drivers cited increased costs of doing business and higher living expenses. Of note were food, rent & gas-related inflation.
💡 Other Noteworthy & Differentiated Commentary
⭐ Luxury / SUV / “UberBlack” economics have to be considered (⏰14:58, 1:27:30 in recording)
⚡ EV service & infrastructure provider Revel made the point that the EV exemption to ‘TLC Plate Cap’ should be lifted again and the benefits of their W-2 driver employment model (⏰16:45 in recording)
🤔 Uber is very profitable in NYC (⏰ 41:10 in recording)
🔍 Pay transparency needs to increase (⏰ 46:10 in recording)
❌ Unfair deactivations need to stop (⏰ 49:56, 1:07:24, in recording)
Example of an observant Muslim, who doesn't drink alcohol, being deactivated because a passenger accused them of being intoxicated 👀
🧮 CPI calculation for driver pay increases need to be NYC-centric and done annually (⏰ 56:32 in recording)
🧑 NYC passenger testimony that fares shouldn’t be hiked and that government surcharges should be decreased in order to increase driver pay (⏰1:00:38 in recording)
We hope this was helpful!
Given the TLC industry has over 100,000 drivers, we all must appreciate that more outreach probably needs to be done before acting on any recommendations!
As always, feel free to reach out at info@automarketplace.com
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️