🛑 Lyft NYC, Like Uber, Has A TLC Driver Waitlist
🛑 Lyft NYC, Like Uber, Has A TLC Driver Waitlist
Similar to Uber, Lyft NYC has started a driver waitlist. It's a big deal.
Lyft has relaunched its pre-pandemic driver “waitlist” in NYC (TLC-licensed drivers), after Uber NYC relaunched its waitlist a few months ago
Given Uber & Lyft have ~80% NYC trip market share combined, both apps having driver waitlists is a big deal for TLC industry
Yellow taxi medallion industry should benefit as TLC drivers seek alternatives
Similar to Uber, Lyft now has a driver waitlist in NYC!
1 Minute Quick Summary
📜 Lyft & Uber NYC Driver Waitlist?
Uber and Lyft, currently the only “high volume for-hire service (HV)” bases, are subject to TLC driver minimum pay rules. These rules famously use a “utilization rate” in calculating NYC TLC driver pay rates. In simple English what this means is that Uber & Lyft NYC can’t have too many idling drivers (vehicles).
Trips need to be distributed among drivers in a sustainable manner or the companies will have to come out of pocket. This should be good for driver earnings, but disrupts the “unlimited supply” mindset that the companies previously operated with and still operate with in other markets.
As we’ve previously covered, there are arguments for and against how the TLC has formulated its driver minimum pay rules, especially with regard to the utilization rate calculation 🧮. Many TLC Drivers will remember last time Uber announced a waitlist, it was followed by Uber “lockouts” a few months later in the fall of 2019. The massive disruption caused by the pandemic, is the only reason why driver waitlists and the TLC minimum pay standard were (temporarily) abandoned.
From the driver supply shortage, in part caused by pandemic era government income programs, to collapsing trip demand, NYC’s for-hire transport market experienced extraordinary dynamics throughout 2020, 2021 and even into 2022. As the City returns to a “new normal”, with driver shortages fading away and trip demand rebounding, pre-pandemic market dynamics are returning.
“Once Uber/Lyft have enough drivers that can satisfy demand AND which allows them to satisfy the driver minimum pay standard - the Uber Planner will likely come back as excess driver supply outstrips passenger demand (also expect driver waiting lists to return).”
- AutoMarketplace NYC (May 29, 2021)
🤷 Why Is This Important?
Uber and Lyft have a large majority of NYC trip market share. Nearly 8 out of every 10 (legal) for-hire trips in NYC, are dispatched by the companies. Therefore, if new TLC drivers cannot gain access to the “HV” apps anymore, they are left to join other bases or drive yellow cabs that account for the remaining, albeit lucrative, 2 of 10 NYC for-hire trips.
In our view, there are two primary benefits of the dynamics described above.
🚕 Yellow medallion taxi recovery 📈: More driver supply will be attracted to industry as new drivers can’t join Uber/Lyft. Inactive yellow cabs will return to NYC streets. Trip market share of yellow cabs will likely go up, as vehicle supply goes online.
💰 Driver earnings 📈: More trips for a limited set of drivers should help increase driver earnings. This was the essence of the not only the TLC driver minimum pay standard, but the FHV License Pause (a/k/a TLC Plate Cap).
Nearly 8 out of every 10 (legal) for-hire trips in NYC, are dispatched by either Uber or Lyft.
🎟️ Golden Ticket?
We predict 🧙♂️ that having “access” to Uber and/or Lyft in NYC will be seen as a sort of “Golden Ticket” 🎟️. Getting “off” the waitlist will be a cause of celebration for a driver and his/her/their family 🥳. Having the ability to access Uber and/or Lyft in NYC will be immensely valuable because the companies have such a dominant market share (Note: we also believe their ability to deactivate TLC drivers should be scrutinized more, given their duopoly share).
It’s also probably a good idea* to begin to reach out to yellow cab garages (even potentially look into acquiring a taxi medallion), which may experience a surge in interest in the coming months and years.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
*Not investment advice
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️
HI, my name is Michael, and I am driving for many years a yellow cab.
I read your article and enjoy it, and I wold like to hear you opinion on very aggressive Uber promotion to recruit yellow cabs for Uber rides (300 $ bonus for 40 trips)
Thank you.