🔐❓ NYC Uber Lockouts, What's Going On...
AutoMarketplace founder Dawood Mian explains why Uber is limiting access to its NYC drivers app, what the TLC can do and what we believe drivers should ask for
As we, and many on social media, have been covering, NYC for-hire transportation (TLC) drivers are facing Uber “lockouts”. The term “lockout” is TLC slang for a situation where Uber (or Lyft) limits the ability for a driver to go online. Given, Uber and Lyft, combined, have an over 80% NYC trip market share, this is impacting a lot of drivers.
The “lockout” dynamic is the antithesis of Uber and Lyft’s original pitch of work when you want, where you want. Lockouts also strip away one of the key attractions of being an independent contractor, the ability to choose when you want to work. Many NYC drivers are understandably frustrated, some are quitting, some believe they will be forced to quit, some are nervous, some think it’s a good thing 🤔. For those who were in the TLC industry before the pandemic, this won’t be their first time experiencing app lockouts.
That being said, today’s lockouts have a different look and feel than the ones that occurred in late 2019 and early 2020. Those lockouts were more straightforward where a driver was told upfront the benchmarks they needed to hit to access the Uber app. Drivers also could reserve blocks of times, ahead of schedule, in an Uber “Planner”.
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Our Thoughts
We’ve been predicting lockouts would return to NYC for some time and have been increasingly writing about the subject as it’s become a new NYC TLC status quo. We appreciate that while our articles might be useful, it helps to give a voice to them as many people might find it easier to understand via video and/or audio.
Below, AutoMarketplace founder Dawood Mian talks about:
Why Uber NYC lockouts are occurring
Who Uber is blaming for lockouts and whether that criticism is legitimate
What the TLC can do about lockouts
How, we believe, drivers should think about lockouts
Suggestions that would prevent lockouts, including those already proposed by prominent driver advocates
Recent insights from our NYC FHV fleet business
We hope you find the video insightful!
Table of Contents
👋 00:00:03 - Intro 🤔 00:03:28 - What are Uber NYC lockouts? 🆚 00:05:00 - 2019 vs. 2024 Uber NYC lockouts ✉️ 00:07:13 - Uber NYC lockout message 👉 00:09:25 - Who is Uber blaming for its NYC lockouts? ❓ 00:10:25 -- Why does utilization rate (UR) exist? ❓ 00:13:45 - Why do NYC for-hire vehicle bases exist? 📏 00:14:45 - Utilization rate (UR) example 💵 00:18:37 - NYC minimum driver pay & UR 🩷 00:21:30 - Are Uber NYC lockouts, Lyft's fault? ❓ 00:25:55 - Why industrywide UR? 👎 00:27:29- Lyft standalone UR is a bad idea 😵 00:30:05 - Uber could kill Lyft NYC via UR? 😓 00:31:37 - "Uber-only" vs. "Lyft-only" NYC drivers 💡 00:33:48 - Solutions to prevent NYC lockouts? Get rid of UR? 👀 00:36:30 - 180,000 NYC TLC drivers ⚖️ 00:42:35 - Supply & Demand 🚕 00:47:14 - NYC reserve asset - taxi medallion 📈 00:49:05 - Adding 10,000 NYC FHVs in 2023 ❓ 00:50:55 - Why did NYC lockouts occur in 2019? 🗑️ 00:53:37 - Get rid of utilization rate (UR) 🧢 00:54:41 - NYC TLC Drivers License Cap? ♻️ 01:04:19 - FHV License (TLC Plate) reissuance 🛑 01:04:19 - Artificial government caps? 🚕 01:06:55 - Lessons of the taxi medallion crash 🪨 01:12:09 - First Principles 🤔 01:15:32 - NYC TLC Plate = NYC Taxi Medallion
I would like to know what I am going to do to pay for my car and my insurance if I can't work this is not good for anyone.
Thank you Automarketplace for allowing me not only to comment but also being part of a friendly debate of ideas here in the comment section. Your insights about the industry are always accurate and there's no possible way that we can't learn something new or be on top of the news about the industry while reading your articles, it's an honor to feel that everybody has a voice among the well respected NYC TAXI industry. Once again, thanks.