Uber Technologies is suing the New York City Taxi & Limousine Commission (TLC) to block an increase in the fares it has to pay drivers that it approved last month, calling them “dramatic, unprecedented and unsupported increases.”
The commission approved the first rate increase since 2012 on Nov. 15, including increases in mileage and per-minute rates for Uber and Lyft drivers.
In a lawsuit filed in New York state court, Uber said it would be forced to spend an additional $21 million to $23 million a month if the rule expired on March 19.
“Such a significant fare increase just before the holiday would irreparably damage Uber’s reputation, harm goodwill and risk permanent loss of business and customers,” Uber said in its lawsuit.
The company said the commission suddenly switched to a “volatile inflation index for a one-off increase that doesn’t make sense and that’s a drastic departure from the commission’s past practice or any rational approach.”
Uber and Lyft driver compensation rates will increase by 7 percent per minute and 24 percent per mile under the commission plan. A sample ride of 30 minutes and 7.5 miles requires a minimum payment of $27.15.
The lawsuit seeks a court order voiding the increases and blocking their implementation while the litigation proceeds.
“With this latest rulemaking, in addition to the annual inflation adjustment, the TLC is choosing to invent a new method that locks this summer’s high gas prices in perpetuity with a mid-year adjustment occurring 12 days before the end of the year,” said a Uber speaker.
He added that the TLC “should have followed their usual annual adjustment and introduced a temporary gas surcharge when gas prices were actually going up”.
https://www.independent.ie/business/world/uber-sues-new-york-taxi-commission-over-pay-rise-for-cab-drivers-42209210.html Uber is suing the New York City Taxi Commission over pay rises for cab drivers