On Tuesday, Uber company will begin limiting its drivers’ access to its Uber app in New York City. This is to abide by the regulation intended to boost its drivers’ compensation and to ease congestion in Manhattan.
In addition, these are laws that Uber says will have unplanned outcomes.
Uber Technologies Inc. stepped forward to lockout drivers at times and in areas of low demand.
The incident happened just months after competitor Lyft Inc executed similar measures in response to city regulation.
Both companies disagree with the unprecedented rules. They have indicated that they will prevent drivers from earning money.
Moreover, they will cut off low-income New Yorkers in remote areas. This is where they are not checked by regular taxis, a claim the city rebuffs.
On Monday in a statement, Uber said, “Time and again we have seen Mayor (Bill) de Blasio’s TLC pass arbitrary with politically-driven rules that have unintended consequences for drivers and riders.”
Last year, New York City’s Taxi and Limousine Commission (TLC) applied a number of laws. These are to challenge the way ride-share companies operate in North America’s largest city, one of the industry’s largest markets.
In a statement on Monday, the agency’s acting commissioner, Bill Heinzen, defended the laws.
It has stated they kept companies accountable and avoided Uber and Lyft from oversaturating the market at drivers’ expense.
New Rules Implemented and Restriction for The Drivers
New rules limit the number of app-based for-hire cars.
The company also established a minimum pay for the city’s 80,000 ride-share drivers built on how much time they spend transporting passengers.
The laws also restrict the time drivers spend “cruising” or driving to and waiting to pick up new passengers.
Beginning in February, ride-share companies have to lessen cruising rates by 5% and later by 10%, down from presently 41%.
Meanwhile, non-compliance can cause fines or even the failure to operate in the city.
The rules are designed at decreasing the bottleneck in Manhattan. Moreover, this is where ride-share vehicles make up close to a third of peak-time traffic.
Uber said there was no proof showing the steps would ease congestion. The company supported a $2.75 congestion surcharge implemented for Manhattan ride-share trips earlier this year.
In June, Lyft shifted its app to lock out drivers during low demand.
The company indicates it is a way to support drivers during the change. For example, the company showed them areas with high demand or times during which curbs are lifted.
A union labeled the New York Taxi Workers Alliance is representing taxi and app-based drivers. This information was stated by the companies who were trying to frighten drivers.
The union said in a statement, “Uber is now spreading fear and disinformation to New York drivers, attempting to convince workers that rules protecting their livelihoods are to blame for Uber’s greedy policies.”
Uber Struck Lawsuit from Past Food Delivery Drivers
Elsewhere, Uber has merged the likes of Foodora and Deliveroo amid lawsuits from Australian food delivery drivers.
On Monday, two previous UberEats drivers from Adelaide revealed that they had charged a lawsuit.
The accusation was versus the ride-sharing giant for allegedly dismissing unfairly and exploited.
The lawsuit is an appeal to a verdict made by the Fair Work Commission last month.
This is to which it has found the drivers were not employees and therefore not eligible to unfair dismissal claims.
An Uber spokesperson stated in a news report, “Uber welcomed the Fair Work Commission’s decision on this matter, it reflected what delivery partners tell us — that they value the freedom and flexibility the Uber app provides.”
The lawsuit has been supporting the Transport Workers’ Union (TWU). This is the one who formerly backed a similar lawsuit versus food delivery company Foodora.
Currently, it is backing another one against Deliveroo.