Uber and Lyft drivers in New York City will get a pay bump come March 1, when a new 5.3 percent increase in minimum driver rates goes into effect, according to city officials.
New York City's Taxi and Limousine Commission ordered the minimum TLC-licensed driver pay rate for for-hire vehicle services that dispatch more than 10,000 trips per day to increase to $1.161 per mile and $0.529 per minute, up from $1.103 per mile and $0.502 per minute. "Currently, two companies have these licenses: Lyft and Uber," according to a statement from Mayor Eric Adams' office.
The city since 2018 has had a minimum driver pay rate for for-hire services. The rules do not set the passenger fare or establish a minimum wage, but instead regulate the minimum amount the largest for-hire vehicles companies must pay drivers for each trip, according to the mayor's office.
It is unclear whether the ride-hailing companies will pass along this increase to consumers and hike the cost of rides in the city, or if it will influence other major cities that regulate driver pay. When asked for a comment, a Lyft spokesperson issued a statement: "According to TLC data, NYC drivers on average earned over 25 percent more than the minimum pay standard in 2021, and it continues to be a great time to drive with Lyft. We look forward to continuing to engage and work with city leaders to strengthen app-based work in New York."
Uber did not immediately respond to a request for comment.