- General
- February 1, 2019
- 5 minutes read
Uber Is Raising Prices For New York City Rides
Uber CEO Dara Khosrowshahi image : Michael Bloomberg on Flickr Uber is raising prices for rides in New York city,…
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| Uber CEO Dara Khosrowshahi
image : Michael Bloomberg on Flickr
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Uber is raising prices for rides in New York city, citing a new minimum wage law put into effect for drivers in the city. The company has confirmed this to Bloomberg, stating it would lift prices starting Friday in response to the new rule which guarantees pay of at least $17.22 per hour after expenses for drivers in the city.
Advocates for this rule argued that drivers earned an average of $11.90 an hour after expenses, below the city’s minimum wage of $15 an hour. The New York City Taxi and Limousine Commission estimated that the rule will benefit a majority – 96% – of the city’s ride-hailing drivers to the tune of $10,000 on an annual basis.
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| New York Mayor Bill de Blasio
image : Bill de Blasio on Flickr
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On top of price increases, Uber passengers in much of Manhattan will now be required to pay $2.75 more per trip, and 75 cents for group rides, accounting for separate state congestion surcharges that could take effect as ruled on Thursday by a New York Supreme Court Judge. The company has’t said anything on how much more costly rides would become due to the price hikes.
The minimum wage rule is part of New York Mayor Bill de Blasio’s effort to limit the growth of app-based, ride-hailing platforms and reduce congestion. Uber competitors Lyft and Juno have filed lawsuits attempting to block the ruling. Lyft argues that it gives “an automatic and perpetual advantage” to industry leader Uber which isn’t challenging the rule, stating that it had told the court “that we do not intend to hold back any portion of drivers’ earnings.”
