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⛔ Uber Says It Will Not Dispatch To New SHL Permits
Uber will not send trips to (~2,500) new/reissued green cab licenses associated with SHL Pilot. NYTWA protests, arguing addition of new for-hire vehicles still dilutes TLC driver earnings
Uber sent a message to its NYC drivers confirming it would not dispatch to *new* SHL Permits related to a recently approved TLC Pilot program. Although Uber presents the reason as them being against congestion and pollution, in reality it appears the TLC driver minimum pay utilization rate math is going too be too difficult if the vehicles can’t pick up in most of Manhattan😓. This will come as a disappointment to some TLC drivers and fleets who thought a loophole to the "TLC Plate Cap” was being created.
Uber also used the announcement to lobby its drivers to ask the TLC to issue *more* EV FHV Licenses (a/k/a TLC Plates), that inexplicably would not add to congestion 🤔.
Consistent with our past views, we strongly disagree with Uber’s call to ADD MORE for-hire vehicles to NYC’s congested streets. To be even more specific, until all yellow cab medallions are active and a significant percent are able to sustain driver earnings for double shifts, ⭐ NO NEW TLC PLATES SHOULD BE ISSUED ⭐. We are frankly shocked that such discourse and lobbying continues related to the release of *NEW* TLC Plates, when taxpayer money was used to support the yellow cab industry and the City has guaranteed medallion taxi debt.
In addition, Uber’s attack on business entities it once partnered with and promoted, is intriguing to us. In a New York City where there is a TLC vehicle supply cap mechanism, Uber loses some of its marketplace power. We understand why they have taken this stance. Furthermore, we estimate ~70% of TLC vehicle supply is controlled by independent operators. While we believe leasing companies should be subject to similar regulations as taxi medallion fleets (e.g., lease caps), large rental companies control a minority of TLC Plate supply.
New SHL Permits
As a quick reminder to our readers, a Street Hail Livery (SHL) Pilot was approved by the TLC Board of Commissioners earlier this month. Essentially, the Taxi & Limousine Commission wanted to create a program to restructure the struggling green cab industry, while also helping facilitate the addition of new “restricted” TLC Plates for traditional black car & livery bases. These bases have been lobbying for a “restricted" exemption to the TLC Plate Cap, arguing they don’t have enough vehicles to service trip demand. In reality the issue might be that they can’t attract enough drivers away from Uber/Lyft, perhaps we are wrong on that!
Taxi Union Fury
When the TLC approved the SHL Pilot program earlier this month, the City’s largest yellow cab union, New York Taxi Workers Alliance (NYTWA), was not happy 👇.
At 1PM today, the NYTWA is planning to protest against the issuance of new, albeit restricted, TLC Plates associated with the SHL Pilot.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
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Now that Uber has refused to assign trips to the new SHL PILOT PROGRAM why is there even a need to protest? Who would be crazy to bid for this license? Let’s recap: 1) You can’t pick up in most of Manhattan; 2) You can’t pick up at the airports; 3) You’re not allowed to pick up street hails; 4) and now Uber is refusing to dispatch to these licensees. That’s it. The program is dead. On the day of the auction this new SHL PILOT PROGRAM may take weeks to fill up (or may not fill up at all) instead of the few minutes it took for the EV license. Someone please explain to me WHY someone would be crazy enough to apply for this license. What am I missing here?
The car service companies will bid for them. Like Carmel