OPINION: Uber & Lyft NYC Driver Deactivations Should Be Subject to TLC Arbitration
While Uber and Lyft have the right to deactivate drivers, commercially licensed NYC TLC drivers should be able to formally appeal deactivations to the TLC given Uber & Lyft's duopolistic market share
AutoMarketplace.com NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace.com on YouTube ▶️
Let me first start this piece with a DISCLAIMER - - - Uber and Lyft have the right to immediately deactivate or suspend drivers from their platforms. Certain drivers (and passengers) certainly do cross the line and there are indeed instances where an immediate suspension should occur if someone’s safety is or could be compromised.
HOWEVER, in NYC 🗽 I believe Uber and Lyft deactivations must be subject to increased NYC Taxi & Limousine Commission (TLC) regulation and oversight. Yes, you didn’t read that wrong, I am actually proposing MORE REGULATION 👀. Regulation that would help drivers reclaim their rights and status as TLC licensees. I also think it would force Uber and Lyft to more carefully consider how it deactivates TLC drivers (remember these are commercially-licensed drivers). I personally know and have heard of drivers with very high ratings and thousands of trips get permanently deactivated for one-off customer complaints , which conceptually doesn’t make a lot of sense. For example, if a Uber or Lyft NYC driver (i.e., TLC licensee) has completed 5,000 trips and has a 4.95 rating, it seems odd that a single passenger-reported incident on the 5,001st trip would result in a deactivation 🤔 (obviously I am not discounting that there are exceptions). Furthermore, if a driver is deactivated by Lyft, but not Uber or vice versa, that also conceptually seems odd - shouldn’t deactivation info be shared across platforms for safety reasons? (there are some indications this is beginning to happen, but for serious offenses only)
Below I break down the two main reasons why I believe all Uber and Lyft deactivations in NYC (i.e., TLC Drivers) should automatically be subject to a TLC hearing where all sides, Uber representing accusing passenger(s), be given a right to argue or present the case for deactivation in front of a TLC court and judge. (remember “innocent, until proven guilty”, which is also an international human right under the UN's Universal Declaration of Human Rights, Article 11)
In other words, all deactivations should be subject to NYC TLC arbitration.
🚕 NYC TLC Drivers Are Commercially Licensed: Unlike any other “rideshare” market in the the United States, all NYC Uber and Lyft drivers, even if they drive for the UberX / Lyft service, must be commercially licensed by the NYC Taxi & Limousine Commission. The licensing process is robust and requires a not insignificant financial and time commitment. Licensees are subject to drug testing and ongoing monitoring / regulatory oversight.
📈 Duopolistic Market Share: Combined Uber and Lyft control 78% of the entire for-hire transport market in NYC. If a driver is deactivated from either platform, especially Uber, which has a dominant 55% market share, a TLC driver has effectively loss the full benefits (i.e., access to NYC for-hire trips) of their TLC License.
Final Thoughts
Uber and Lyft have the right to run their businesses, but given their duopolistic market share and the unique nature of NYC’s ridehailing regulations, both should be subject to more regulatory oversight regarding driver deactivations. It should also be noted that the Independent Drivers Guild (IDG) and Legal Rideshare offer services that help drivers appeal deactivation decisions. However, I strongly believe that in NYC the process of appealing, or justifying in many ways, a deactivation should specifically be overseen by the TLC as a way to protect TLC driver rights.
I know many of you who subscribe/read this newsletter have publicly and privately expressed a negative opinion of the TLC, so my suggestion of granting more power to the organization might fall on angry ears. My honest opinion on the matter is that drivers working with the TLC are going to be able to better protect their rights than demonizing the regulator, although I understand where certain frustrations come from (I have experienced many issues in my dealings over the years as well). Ultimately, if the TLC DOES NOT have some sort of oversight of deactivation decisions made by Uber and Lyft, in many ways they concede some regulatory power to the Apps. I also believe retroactive hearings are in order for all TLC drivers who were deactivated by Uber and/or Lyft over the past several years that are still actively conducting for-hire trips in NYC.
I want to conclude with this…I believe Uber and Lyft (especially if Lyft merges with a company like DoorDash) are set to become among the most valuable and profitable (yes, you read that right) companies in the world. You can read my full investment thesis here (published by HFW, AutoMarketplace’s parent company) on how I believe Uber will achieve profitability and why I believe it is set to become “The Amazon of the On-Demand Economy”. I also appreciate the very unique nature and structure of NYC’s ridehailing industry and believe Uber and Lyft could actually further consolidate their NYC for-hire trip market share (i.e., > 80-85% total share). Therefore, as time passes, deactivation by either Uber or Lyft will almost become the equivalent of losing one’s TLC license status. It’s time for such deactivations to be regulated more stringently.
Are you a NYC TLC driver who’s been deactivated by Uber and/or Lyft? Do you think Uber and Lyft should be subject to automatic TLC arbitration if they deactivate a NYC driver from their platform? Email us at info@automarketplace.io or comment below to tell us your story.
AutoMarketplace.com NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace.com on YouTube ▶️
Hey I was deactivated from uber 6 years ago for things I didn’t do can someone help me I’m a nyc driver and have been trying to get reactive for 5 years now no luck please if someone can help me get my account active or what can I do now to get in touch with uber that will be greatly appreciate
I got deactivate from Uber for multi complaint which is not true because I am the one who make the complaints against riders for safety reasons