🛑 Uber NYC Has A Driver Waitlist
🛑 Uber NYC Has A Driver Waitlist
Nearly 4 years to the day, Uber has relaunched a driver waitlist in NYC. We explain why it's an important inflection point for the NYC for-hire transportation market (a/k/a TLC industry)
Uber relaunched its pre-pandemic driver “waitlist” in NYC (e.g., only for TLC-licensed drivers)
Unclear if Lyft NYC has also relaunched driver waitlist
Drivers with EVs & WAVs may still be able to sign-up
Launch of Uber NYC driver waitlist is major inflection point for TLC industry
“As of April 1, 2023, we are limiting new for-hire vehicle driver sign-ups in New York City, largely due to TLC’s utilization regulations. Create an account to join the waitlist to drive with Uber in NYC”
- Uber
Almost four years to the day of launching its initial (pre-pandemic) driver waitlist in NYC, Uber is limiting new driver signups in New York City (a/k/a TLC market). While there is market chatter that new drivers with electric vehicles (EVs) or wheelchair accessible vehicles (WAVs) are still being onboarded, Uber relaunching its NYC driver waitlist is an important TLC milestone. Notably, unlike April 2019, Lyft NYC still seems to be accepting new drivers (please let us know if you hear otherwise!).
1 Minute Quick Summary
Driver Waitlist? Lockout Next?
Uber (& Lyft) are subject to TLC driver minimum pay rules, which famously uses a “utilization rate” in calculating driver pay rates. Essentially, Uber (& Lyft) can’t have too many idling drivers (vehicles) in NYC or, in other words, demand for trips NEED to be distributed among a limited amount of drivers. This should be good for driver earnings, but disrupts the “unlimited supply” mindset that Uber & Lyft 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 in regards to utilization rates. 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, technically known in NYC as high-volume for-hire services (HVFHS), combined have a large majority market share. Nearly 8 out of every 10 (legal) for-hire trips in NYC, are dispatched by either Uber or Lyft. 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.
We predict that having “access” to Uber (perhaps 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 (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).
We encourage any NYC TLC driver that doesn’t have access to Uber and Lyft to IMMEDIATELY sign-up ✍️ to access their platforms (e.g., Lyft accessible, have a good place in Uber NYC’s driver waitlist). You don’t have to drive for them necessarily, but sign-up! It’s also probably a good idea to begin to reach out to yellow cab garages (even potentially look into acquiring a taxi medallion, if that’s of interest), 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.
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️