🪧 NYC Drivers Prepare 24 Hour Uber Boycott, Some Thoughts
NYC TLC drivers, with influential support, including from NY congresswoman Alexandria Ocasio-Cortez (AOC), prepare 24 hour Uber boycott protesting pay raise delay. We share some thoughts
Some (perhaps a large %) of NYC TLC drivers who work with Uber, are preparing a 24 hour boycott of the ridehailing app, after the Company successfully delayed a driver pay increase.
We share some thoughts below, ahead of tomorrow’s planned strike action.
🟪 Lyft
While Lyft is not technically part of Uber’s legal action, which delayed an inflation adjustment increase to the NYC TLC Driver Minimum Pay Standard, it likely supports the action. In 2019, Lyft sued to prevent the implementation of the driver pay standard all together, arguing the calculation uniquely benefited Uber (they eventually lost the case). Lots of math-based 🧮 arguments as you can tell!
“The rule has already resulted in 10,000 fewer New Yorkers being able to earn on our platform. We will continue fighting for drivers and are currently exploring all our options.” - Lyft statement in December 2020, after losing its appeal to block how the TLC Driver Minimum Pay Rate is calculated, arguing it unfairly benefited Uber
Lyft’s silence on the current action, in our view, is best described with the old phrase: “the enemy of my enemy, is my friend”. Lyft, the only other NYC for-hire transport company service subject to the new driver pay standards, stands to benefit from the delay in implementing them. However, it has likely gamed out that Uber had to act regardless, so by taking no action it can save Lyft expensive legal fees AND allow it to stay out of the headlines. If that wasn’t the case, wouldn’t this be one of the greatest driver marketing opportunities for Lyft (in its history)! 📣📣 (i.e., We, Lyft, are going to implement the NYC driver pay increase, but Uber isn’t, come drive with us!)
In fact, a closer look at Uber’s lawsuit seems to confirm Lyft’s disappointment with the proposed TLC driver pay increase calculations. So, ONLY targeting Uber with a strike, is not intellectually honest.
🚕 Yellow Cabs
For the yellow cab industry to be angry that Uber is blocking a pay raise on its app was, at first, somewhat counterintuitive to us. Firstly, their taximeter pay increase, the first in a decade, is not impacted by Uber’s legal action. NYC yellow cab drivers will get their promised and well deserved rate raise, starting tomorrow! 👏👏 Secondly, wouldn’t the taxi industry be happy, from a business standpoint, that Uber is angering its drivers so much? That would benefit the taxi medallion industry, no? More drivers, presumably would want to drive yellow cabs, a sector in desperate need of more TLC drivers.
Well, it’s complicated…
As the very knowledgeable TLC industry-focused Twitter handle NYC_TMODA (a/k/a Taxi Medallion Owner) points out, one of NYC’s largest taxi medallion leasing companies has filed its own legal action, essentially upset that Uber might be able to compete with it more effectively, if ONLY the yellow cab industry is subject to a driver pay increase 🤔.
◼️ Black Car & Livery Bases
It’s also important to realize the higher driver minimum pay standards go, the harder it’s going to be for traditional NYC black car & livery bases to compete. Remember, Uber and Lyft are the only high volume for-hire services (HVFHS), or companies that facilitate more than 10,000 daily trips, in NYC. Other traditional black car and livery bases are NOT subject to TLC’s Driver Minimum Pay Standard.
The more Uber & Lyft are required to pay its drivers, think about what that means for how effectively smaller bases can compete with Uber & Lyft. Revel, a top 5 NYC TLC base by trips, advertises gross pay of UP TO $23 per hour (Note: we invite Revel to correct us if we are framing that incorrectly, but it appears the advertised number is a gross pay reference. If it is, that’s BELOW the TLC Driver Minimum Pay Standard.)
Think about what we are saying. If you force Uber & Lyft to abide by very high minimum pay standards, you’ll likely kill off a lot of their smaller competition unintentionally, if you game it out. You will essentially solidify Uber and Lyft’s NYC duopoly market share. Is that what TLC drivers really want? 🤷
🌆 NYC TLC vs. Uber
In our view, the main battle for the NYC Taxi & Limousine Commission is to confirm its power to regulate TLC driver minimum pay without too much interference from private companies, even large players like Uber. It essentially supports tomorrow’s strike action, but wants to make clear that its primary focus is winning in court. Finally, it’s also worth remembering, Uber’s complaint revolves around the inflation-adjustment calculation, not the existence of the driver minimum pay standard itself.
“The city’s for hire drivers have every right to protest Uber’s attempt to deny them the inflation and cost of living pay adjustment that they are rightfully due…TLC is actively protesting this too, in court.” - NYC TLC Commission Chair David Do
“Drivers do critical work and deserve to be paid fairly, but rates should be calculated in a way that is transparent, consistent and predictable” - Uber spokesperson Josh Gold
the commandment for the fhv industry , is , basic transportation by yellow cabs at reasonable prices , next up , luxury black cars at a significantly higher rate for those who want a more comfortable ride , this is the formula for a successful fhv industry , no and, ifs or buts